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Land prices
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zmracing
Posted 3/6/2016 17:15 (#5159513 - in reply to #5159350)
Subject: RE: Land prices


west central MN

Can you tell us what funds to short and will we be able to short them? There have been several guys in here that have tried to short different stocks and there are none available to short. I have tried Titan machinery and a couple of different ethanol plants with the same results. If you find a fund that has shares available to short let us know.

As far as selling land, that can be a decent opportunity if you have land that you are not connected too and also have a place to put the money where you don't have to pay taxes. It can work pretty good if you have a place that you want to exchange ownership with a 1031 and then plan to come back in a few years and sell the property that you bought and turn it into farmland again. I had a plan to sell some land and 1031 exchange it and we had a couple of opportunity's and something would fall through on one side or the other. It is not as simple as you are saying. I was not about to just sell it and then pay the taxes. It is much harder to sell land when you think it is too high but it is not hard at all to just not buy any more at the current prices.

 I would say you are completely wrong when you say that the guys that are saying land is too high now will never buy. I know of 5  or 6 guys that bought a lot of land in the late 80's and 90's and also some over time after that. They are all just waiting now and will be buys again in a few years.

I think land will be higher priced in 20 years but why buy now if you think you can buy twice as many acres with the same amount of money in 4 or 5 years. You also have to make the payment and pay the taxes for the next few years if you buy now. Land will not cash flow now at these prices. I saw quit a few pieces of land that got sold in the late 80's that would cash flow.

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