New parcel purchase options

[Wind Gypsy]

I can see the climb slowing down a bit but as long as there's a demand and a shortage in inventory it's hard to see things going down much without a major economic downturn.

If you have money available through equity or other options, then low rates are still available. I'm financing my new land purchase at 3.75%. I feel incredibly grateful for having those available to me because traditional land and second mortgage quotes are in the ballpark of 6.25 to 6.5% already. That's a shit load of buying power gone at those rates.

That is interesting, can you explain more? Like taking a loan against equity in assets you already own?

 

[BuckSutherland]

I refinanced the house about a year ago at 2.5%, paid a little cash and knocked roughly 7 years of payments off the original mortgage and got the payment a little cheaper. Went from a 30 year mortgage to 15. I plan to pay cash if I buy more land. I could have paid off the house, but didnt want to let 2.5% get away. I'd rather pay 2.5% on the house then 5-7% on land. I'm always on the lookout for more land. There's always a deal to be had somewhere. First piece is likely worth close to 3x what we paid 10 years ago at the rate things have been going.

 

[Brian662]

I can see the climb slowing down a bit but as long as there's a demand and a shortage in inventory it's hard to see things going down much without a major economic downturn.



That is interesting, can you explain more? Like taking a loan against equity in assets you already own?

Yes, exactly this. I have X amount of equity in my home and acreage, I took out half the cost of my new property in a HELOC loan against my home (amortized over 15 years, got a fixed interest rate of 3.75% from a credit union). The other half of the cost of the loan, I took out a 5/1 ARM loan out also at 3.75% (amortized over 30 years).

My main home mortgage (2%) will be paid off in about 8 years. In 7 years after that my HELOC will be paid off. The only way that I can get bit is, if I lose my job (very unlikely) or if the rates skyrocket when the 5/1 arm comes due for new rates. To protect myself against this, I will pay down the 5/1 arm loan with additional principal when available and a large scale logging to be completed on the property within 1-2 years of purchase. There is also additional income available on the property that I will use to pay down the ARM loan with as well.

 

[silver_yummies]

Congrats on the land purchase! Fill us in on where and what you got once you close. I also live in MN and own hunting ground in WI.

 

[Foggy47]

When you consider where land prices are going....I would urge you to consider this......

1. It took till 1880 for the world population to reach 1 billion people
2. Fast forward.....and 140 years later...... the world population is about 8 Billion people.
3. Fast forward 140 more years....and at the rate of population growth we would be at 64 billion people in 100 years or so.
4. I am not sure the world can withstand 140 people.
5. I am glad I lived in the times I lived.
6. I worry about my kids and grandkids.
7. It's gonna get ugly in the years to come.

 

[jsasker007]

It's not how many, it's the level of stupidity that's wrecking the world. And greed, lets not forget the almighty dollar. I gotta get back to saving the planet.

 

[Brian662]

The US population has increase from ~90 million in 1910 to ~330 million in 2020.

People have to spread out for happiness and life satisfaction. The more crowded that inner cities get the likelihood the downward trend in society increases. That's just my opinion, but I would bet pretty strongly that absent a world War, land prices continue to increase for the rest of my (our) life.

 

[Brian662]

This meme is perfect for me.

 

[roymunson]

Congrats man. Land will be a good investment, and is a lot of fun to figure out.

I'm 50 minutes away from mine, but I can make a flying trip out there and still be back to work for the afternoon. That's appealing to me. Also, having 3 kids 10 and under, being home in the evenings is important to us. So if I were 2+ hours away, I wouldn't get there like I should.

Hope it's all you hoped for and more. Can't wait to see the land tour

 

[Hoytvectrix]

It's pretty cringey how some of you view "the cities". Basically it's on par with how people who live in metro areas view those in rural areas. Plenty of ignorance to go around.

 

[homerj1]

It's pretty cringey how some of you view "the cities". Basically it's on par with how people who live in metro areas view those in rural areas. Plenty of ignorance to go around.

There's two Americas and the gap is only widening between the two.

 

[Brian662]

For me it doesn't have anything to do with "the cities" themselves or even the people who live there. I don't like crowds of people no matter if it's a football game or a tractor pull.

If you don't like something and you are fortunate enough to live in a free country like we do, you can make a decision to avoid it. That's where I stand on the matter. I have plenty of family, friends, and co-workers who live in "the cities" and they are great people. That life just isn't for me, no fault or ignorance on either side.

As to the meme, my original point stands, when people get over crowded like they are now, things like burning down police precincts eventually happen. The best way for it to not have an impact on my life and the short amount of time I spend on this earth, is to avoid it as best I can. God bless America.