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What is ground worth?
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AGB
Posted 4/16/2014 17:04 (#3820172 - in reply to #3819645)
Subject: RE: What is ground worth?


Mid-Michigan
denny-o - 4/16/2014 10:31

The land I am buying will go to my children in a trust and the terms of the trust stops them from turning it into fast cars and even faster blondes a week after I am gone..
The stock market is a fools game that only benefits the slick and the slimy.
When the bubble pops this time it will make 08 look like a mere pothole in the road..
Land will not lose 40 - 50 - 60 percent of it's value but stocks can and will in a matter of hours.

Ya, ya, ya, I paid more for my land than it will pencil out for - it's the New Math.
But if the day comes I need the cash, farming dirt will sell in a heartbeat - can't say the same for original GM, or Enron, or the Lehman Brothers, or investing with uncle Bernie.
So, farming dirt is my 401K (without being one) and I get to raise grain for a modest profit each year. You can't do that with a piece of paper and it nets me lots more annually than treasuries or triple AAA bonds will return on the same amount of money invested.
Now, if you are trying to pay yourself a salary AND make 80% mortgage payments on $6K+ land - ouch. The math is gonna pinch.


That is pretty insightful. I have a neighbor that has probably bought 1000 acres in the last 3 years. Marginal ground. Paid top dollar for here. I cant even figure out how he is making the downpayments. Ill pay high but I need to be able to pencil something out of it (and lately I can't)
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