|
North Central Indiana | I wasn’t around, that’s right. But let’s be honest about the situation there. Land average peaked in 81, stayed flat until 84, declined in 85 back to about 79-80 levels. Then had completely recovered by about 94 and doubled by 2003-04. So if you bought at the peak you lost some value for 10 years or so. If you bought before the peak you never actually dipped back down below purchase price on the average. Is land a long term or short term investment? I’d say a reasonable window for land is about in that range. Short cycle down, obviously possible. Long term down trend, hasn’t happened yet. My data is from the USDA economic research service just fyi. I guess if you bought land in 83 thinking you were going to double your money by 85 then yeah that was a bad investment. Interest rates got people in the 80s. Land value came down and loans got pulled because repayment looked really bad at those rates. I don’t want to make light of that, it wrecked a lot of lives. But it wasn’t long term and there were others that were well positioned or lucky that made out great. | |
|
Land Auction
