Landowners, what % of your net worth does your land equity represent?

[Wind Gypsy]

Also the tax man decided to bend us over and now we pay over $200/ac in taxes on the new acquisition. So what's the best option to make that easier to stomach? Enroll in a govt forest program. Again, as is being talked about on another thread, just another form of confiscation where govt gets its mitts on your property.

The word confiscation could actually fit in the scenario you described. I’m not aware of taxes anywhere close to that for rural land in MN. “Confiscation” here, far as I can tell, just means “I don’t want the government to buy more land from willing sellers”.

 

[bwoods11]

I’ve added to my parcel in Iowa .. would certainly add more if a neighbor sells.

 

[Gravel Road]

Around here if land gets sold it gets broken into 2-10 acre lots. Then either a McMansion goes on it on it or a cheaper house with a couple horses that end up getting hayed year round because there isn't enough grass. This is especially true if the land is off of an asphalt road. I find the urban sprawl worse than anything else.

 

[Turkish]

chummer - Come on down south. Plenty of land available and in many parts...southern hospitality still exists. My farm is in a very rural county about 1.5 hrs east of Atlanta. I was there on Thursday and still amazed at the Trump signs and American flags flying. In fact...more Trump signs now than during the election. Taxes relatively low...cost of living not bad...low crime and generally decent folk.

As to the OP's original question - my farm represents a small portion total net worth. That may go up in the coming years assuming adjoining property comes up for sale. I'm 65, still enjoy working but retirement looms. Ain't counting on the pine trees growing on my farm to provide any kind of retirement income but plenty to keep up with my habitat/tractor/implements/tree stands, etc., addiction.

Thanks for getting us back on topic, for a bit. :)

 

[g squared 23]

Based on what I paid for it, the hunting property is 12% of net worth, house is 26, and stock market is 42. I’m putting 20% of income into the market. Anything leftover goes toward the mortgage. When the property is paid off, I’ll start building a fund to buy a new one. Should pay the current one off in less than 7 years. So a new property in 15 years?


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[Gravel Road]

I don't know what the % of net worth is ,since my wife does the finances :) All I know is if my neighbors 160 comes up for sale, I'm buying it.

 

[Knehrke]

What do you think should be done about it?

Wish I knew, man. I don't see a viable solution. So long as folks are free to do what they want with their own land, it's going to keep getting split up, particularly in passing it on to the next generation.

 

[bwoods11]

This is a great topic, thought I’d bring it back !

With the huge increases the past few years, are you guys seeing land increasing as your percentage of net worth?

 

[SD51555]

This is a great topic, thought I’d bring it back !

With the huge increases the past few years, are you guys seeing land increasing as your percentage of net worth?

It took a big leap forward. I talk to the assessor every year after he leaves a card after stopping by to look for revenue.

He told me last fall land in my category and in my area had most recently gone for over twice what I paid for it in 2016. I never imagined I’d get my money out of this property, and here I sit, it’s already doubled. I’d bet my building is worth twice what I paid for it too.



#ThanksPowell




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[b116757]

Yes our land values have recently increased but they could stagnate or even loose value with the looming recession and higher interest rates. I still love land as an investment however you can use it and enjoy it way more than an investment account. Not to say you shouldn’t invest in stocks but there isn’t the same enjoyment factor. I’d say 85-90% of our net worth is tied up in real estate investments spread between farm ground, rental properties and homes.

 

[Tree Spud]

All of our properties have increased in value with good to better than good growth, and one that has grown many multiples of what we paid for it 3 years ago. Relative to net worth, stocks and bonds dropped but are starting to to recover. Overall the properties have been the growth engine.

Just glad I never got involved in commercial real estate. A real blood bath in some of those areas.

 

[Turkish]

To add to this, one does not need to look at their hunting land as an investment for the question in the OP to be an interesting one.

The land I bought in 2016 has gone up in value maybe 50%. Pretty modest return, imo. But looking back at my OP, its % of my net worth has stayed about the same, due largely to the stock market not doing great over the last 2 years. I typically undervalue land that’s available and have missed out on some cool places and smart buys because of that. I really want to buy more but am generally risk and debt averse.

Do I have any intention of liquidating my rec land holdings for another type of investment? No
Would I sell it tomorrow if my family had an emergency need? Yes
Would I buy rec land if it depreciated like a ski boat? No
Is it an “investment?” Hell if I know.

 

[Foggy47]

Timberland in my immediate area now sells for $3500/a.....give or take. I can remember a time when $200/a would have seemed very high priced around here. Inflation happens.

I did not make a fantastic "deal" when I bought my place.....but considering it's location for me.....I'm happy with my land. I suppose it's about doubled in value since buying it 15 years ago. It's not a high percentage of my worth. I can wish I had bought more land......but I don't really want to care for a much larger piece anymore. We are getting to a point in time where we want to simplify our life.

 

[SwampCat]

The increase in my land value has probably offset the decrease in my financial investments.

I dont consider my land a financial investment - as I hope to never sell it.

That said, my land could probably be considered a financial drain - based upon the amount of money I spend every year on habitat and wildlife.

 

[Turkish]

Timberland in my immediate area now sells for $3500/a.....give or take. I can remember a time when $200/a would have seemed very high priced around here. Inflation happens.

I did not make a fantastic "deal" when I bought my place.....but considering it's location for me.....I'm happy with my land. I suppose it's about doubled in value since buying it 15 years ago. It's not a high percentage of my worth. I can wish I had bought more land......but I don't really want to care for a much larger piece anymore. We are getting to a point in time where we want to simplify our life.

While I still feel pretty young and capable, the distance from my land and other prospective pieces is definitely a problem for me. I don’t feel like I have the time to get the personal enjoyment, satisfaction out of it that I should. Land within an hour of my residence is 4-5x the price.

 

[Bill]

I can’t believe how much my place is supposedly worth theses days. Not liquidating because I’d never replace it. The biggest growth I’ve seen is my beach property. I sold a beach home in 21 to take the crazy cash people were throwing around. The Plan was to sit it out until things fell and buy back in. Luckily 2 weeks into the contract I over paid for what I thought was another good beach property. It’s up 25% in 2 years. Glad I didn’t sit it out waiting, I’d still be waiting and crying.

 

[Turkish]

I can’t believe how much my place is supposedly worth theses days. Not liquidating because I’d never replace it. The biggest growth I’ve seen is my beach property. I sold a beach home in 21 to take the crazy cash people were throwing around. The Plan was to sit it out until things fell and buy back in. Luckily 2 weeks into the contract I over paid for what I thought was another good beach property. It’s up 25% in 2 years. Glad I didn’t sit it out waiting, I’d still be waiting and crying.

They say it’s like a merry-go-round. It’s easy to hop from horse to horse if you’re already on. Once you get off you never know when you’ll get a chance to hop back on.

 

[Wind Gypsy]

I feel like things are already down from their peak in most cases here in MN. Housing definitely is, rec land seems pretty stable or a little down just judging by listings.

 

[rocksnstumps]

During the last economy hiccup in 2008-2009, rec land suddenly had more listings but prices remained high. Maybe if bad economic juju went on for 3-5 yrs prices might slide back some but just don't see hot deals gonna happen without prolonged Clubber Lang prediction "Pain"

The other word that got more listings on the table further north was "wolves"

 

[Foggy47]

I can remember very good farm land in southern MN that sold in sold in the area of $200 to $400 an acre in my youth. Today, that same land may sell for $10,000 / acre and up. Farmers that accumulated land have made a pretty good ROI on that land value.....not to mention the farm income over time. Hard to argue with owning income producing land for the long haul. Just don't own so much that you choke on it. lol