|
Eastern Iowa | I can think of a few,
1. Most new building cash flows that I have seen value the building at 50% after 10 years, therefore 50% of new at time of construction.
2. If its gonna cost me 10/space per year in major repairs for the next 5 years to get me 10 more years on a 10 year old structure, Then I might as well build a new building have it paid off in 10 years, then put 10/space/year for 5 years to get another 10 years and I don't have a mortgage payment.
3. Hog buildings are not like homes and other realestate as many have given there opinion, they are really a dumb investment as I have read. So building a hog barn and expecting to Flip on HGTV for a profit seems silly. If you can have it paid for in 10 years, got the manure value out of it, and sell it for 50%, I would do that in a heart beat.
If I could take $2000 (20% DP) buy $10,000 acre land and sell it in 10 years for $5,000 and have all my expenses covered, Interest, paid my self a wage, that equals me paying myself 25% interest on investment, better than a CD. ( I believe my math is close) You would have to pay yourself $500/ac in rent to get that return, that's not gonna work in my area this year, probably not next year either.
That's why I think 50% of new at time of construction is still enough, actually after typing out this post I like the 5 to 10 cents on the dollar.
| |
|
Used Hog Confinement Price
