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NEIN | What you are missing is that land is bought with after tax monies. So in today's case, while yes interest is low, the offsetting factor is paying 30% income tax on the principal portion of very high priced land. That means principal land payments are much harder to make, even harder perhaps than paying higher interest rates with deductible dollars. The deferred tax liability for every acre at 10k is $3,000. Think about what that will do to a guys cash flow. | |
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