West Central MN (between MMF and Larson's) | Very true. I agree with you and your grandpa. Would prefer to own all the ground we farm too. That will likely not happen in my lifetime unless the power ball hits for me. So we continue to rent as well.
I also agree with Tara in that over the long haul land will likely appreciate. We were fortunate that our first purchase was one of the ones that penciled at the time and continues to, that first parcel enabled us to get the second parcel. Sometimes you are good and sometimes you are lucky. Hope to be in position for both.
emtbd1979 - 4/14/2014 22:09
It's interesting a while back while riding with my 85 year old grandpa down the road he starts in with. I could have bought that farm years ago for $125 an acre, I bought this farm for $400 an acre. Then we turn a corner and he says. Watched both of these farms sell for $250 an acre. And then the best. That guy there gave $80 an acre.
I told him jokingly you should have bought them all! His reply. They wouldn't pay for themselves at that price back then and I didn't have the money.
So the moral of my story is? It's always too high but in the long run 10 to 30 years later, it always goes higher. That is a proven fact. There are ups and downs but from a young guys perspective it makes more sense to be buying as throwing money away renting, but it takes rented ground profit to pay for the bought ground. |
Land Values and how to pay for it
