bwoods11
5 year old buck +
I agree with 80-90% of what you have there Jake, and I love owning land/buying parcels and fixing them up with habitat improvements etc... One thing I will say though is the money is made at the time of purchase. You have to buy it right or things may not work out so well. For instance, I have seen several land owners buy parcels with easements on the farm for around 1500-2000 acre. Some of those farms are now worth less than $1000 an acre, and they cannot sell the farm (no income).
Farmers west of me that paid $10,000 an acre have seen the value of those farms drop to 5-6k per acre---since corn dropped in half.
According to one source that I have, some of these guys are being watched closely by their lenders already!
Since I am self employed and also in real estate, I watch the land market very close. In many states. Low corn and soybean prices will have an impact on prices. In MN... ND and SD they are parcels sitting on the market because the owners can't accept that their farm has dropped.
Like the stock market, real estate is and up and down market. It is great investment with excellent tax benefits, but you have to buy it right..... personally I prefer a parcel that produces a yearly income!
Farmers west of me that paid $10,000 an acre have seen the value of those farms drop to 5-6k per acre---since corn dropped in half.
According to one source that I have, some of these guys are being watched closely by their lenders already!
Since I am self employed and also in real estate, I watch the land market very close. In many states. Low corn and soybean prices will have an impact on prices. In MN... ND and SD they are parcels sitting on the market because the owners can't accept that their farm has dropped.
Like the stock market, real estate is and up and down market. It is great investment with excellent tax benefits, but you have to buy it right..... personally I prefer a parcel that produces a yearly income!