| rupert - 9/6/2014 12:50
It seems by reading here the charts can predict almost everything in the future. I am a little skeptical of that but that is beside the point. I'm sure there is a price of farmland chart on the inter web somewhere. Since the common consensus is land is going to drop like a rock can your chart tell me when the bottom is and at what percent if current values? I need to know when to come into the market with both barrels a blazing thanks no question, Rupert, if you were to buy a piece today, it would defiantly be cheaper by a fairly significant margin than 6 months ago, and the slide WILL continue. I can't predict the bottom, and certainly do not profess to know even within 15 percent of where that might be, but I will predict land will make a much bigger correction than most can imagine before it turns back around. That's the way all markets are. My recommendation would be to start in here buying small tracts even if they are not in your area, and rent them out if too far away. But buy them as they come up for sale, maybe a 40 acre parcel every 4 months for the next 3 years. Dollar cost average on the way down. Bottom should be in by then and you will defiantly have bought some parcels in the bottom 20 percent of the range. There will be a disconnect between falling land values and cash rents. They will not move in unison. Rents will continue to be a more and more favorable rate of return as a percentage of purchase price over the next three years before rents and land values reach an equilibrium. That will be in your favor employing this strategy. |
Question for you chart guys?
