Former Hamburg convent lined-up for $50 million makeover

After over 80 years of service, the Immaculate Conception Convent in Hamburg has closed its doors for good. A group comprised of three different investing parties has purchased the sprawling 18.5 acre property for $1.25 million, and has grand plans for its future. Given the infrastructure currently in place, as well as an expansive amount of undeveloped land; the new developments are likely to take place in several stages over time. As of now the leading proposals that the team of buyers would like to pursue include: market-rate apartments, townhomes, retail space, and an assisted living facility. Check out the link provided here for a more in-depth look at this story.

Is Land a Good Investment?

Is Land a Good Investment?

Buying land is an entirely speculative game– if you bought land in California in the 1970s, you may be reaping the rewards; but if you bought that same land in 2006, it’s worth just a fraction of what it once did.  Real estate investors see buying land as one of the biggest risks in the business.  While development companies with long-term goals and a diversified portfolio might find the risk worth the reward, others might just plain lose.  There is a low rate of return– stocks, bonds, and other investments often yield better results.

Why is it a risky investment?  Because, after buying it, you still need to pay for it through insurance and taxes.  That means that you’re losing out on other capital gains that stocks and bonds could bring, while also risking the land itself losing value over time.  What do you think?  Is it worth the risk?