68340 | You don't give us any numbers, so I am just going to give it a stab.
Taxes.
Personally, selling my land would be a big tax bill. Selling price - purchase price = 50% taxes. Sell for 10,000 - 1,500 = 8,500 net. 8,500 * 50% = 4,250 taxes
10,000 - 4,250 = 5,750 net. Now I would have to invest that 5,750 in something that would yield as good as my 10,000/acre net rent income.
And that investment would have to be as safe as owning land.
Plus, to me, land is stable. Not a piece of paper.
Value 10,000 today. Dollar crashes. Land value 500/acre. I believe that milk will not still be 3/gallon or what ever it is. The value of things will be proportional.
Just my point of view from a 73 year old retired farmer who has farmed since he was a boy.
Enjoy. :) |