Should I pay off land before borrowing for another loan for land and house?

I am paying off a block of land which had a derelict house with my brother and he has suggested buying something to rent out while prices are low. Would it be better to pay as much as we can on the land, as it isn't generating any income, or buy? I know house prices will rise but we will be significantly reducing the interest on the land, or should we just wait till we build up enough to re-build the derelict house?

Answers:
It depends on if the income generated from a rental out ways the
extra interest expense on the land .
This is a rule I have followed all my life and I am Rich Now.

If you borrow to buy something, Stop all unnecessary spending until the debt is gone. Then you own an asset with no debt and you have "OPTIONS"

you can use the asset as collateral to borrow again, you can just use the asset and keep your present income without having to pay interest. etc.

If you are in debt, your options are limitede and unnexpected events can screw you.

It's hard to be hurt if you have no debt. So use credit wisely, and pay back loans as fast as you can.

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