Should I buy land for in Texas for a tax break and to build my credit?

I am looking to buy acreage in Southeast Texas for the sole purpose of building my credit, getting a tax break, and as an investment. Is this a good idea? If so, what type of land/acreage should I look for? Restricted, unrestricted, does it matter? I don't plan on building on the land, just keeping it for credit, investment and tax purposes. What type of land do I look for. I need one that is low maintenance.

Should I buy land for in Texas for a tax break and to build my credit?
Land values in real estate are cyclical, so it becomes very risky solely investing in land when you have no plans to develop or improve the land. I would say do not invest in land, unless it's somelike motropolitan where land values are not as affected by external forces. I would recommend investing in something that generates income like an apartment, house, or commercial structure. This way you're still getting the tax break and producing a return on your investment.
Reply:The tax break comes at the time of sale of the unimproved property - you get tax deduction for mortgage interest not investment interest on your yearly tax return. You need to be doing some research by comparing properties and talking with real estate agents - then check with your accountant - they can save you a lot of time (up to 20 years in some cases).
Reply:This is the first time I've ever heard of someone wanting to just buy grounds without putting something on it to build up their investment purposes.I would usually tell the person to use the land for something,so that way the land pays for itself,in the future down the road,if anything.If you were to invest anything on just land,then it would give a tax break to you,only if you had something built up on it.But otherwise would be considered pointless without having assets built on the grounds themselves.And secondly,you'll always have to keep land maintained,and filed for reguardless(even if it was made of all concrete,like a street lot,for example,to keep up with the inspection codes and ordinance rules run by city or state).So unless you're intending on doing something with the land,or property area,then you may want to consider other things,if this doesn't work for your benefits like you are wanting.
Reply:Vacant land may be an investment, but a tax break? Keep in mind that you'll be responsible for paying property taxes and municipal fees, and possibly liability insurance and maintenance. The only income you'll be receiving is maybe a gain when you re-sell it. Also, don't forget, we're in a somewhat over-inflated market, so I wouldn't count on a gain on sale in the near future.





I also don't see how this will enhance your credit, having a potentially non-performing asset that's draining your normal cash flow.

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