Posted 11/9/2015 20:41 (#4887136 - in reply to #4886762) Subject: RE: Zenfarm, how do you calculate...
Death comes to us all. Life's but a walking shadow
How do you calculate the capitalized value of farm land if the definition of "capitalized value" is : "Capitalized Value. The current value of an asset, based on the total income expected to be realized over its economic life span. The anticipated earnings are discounted (given a lower value) so they take into account the time value of money."
Isn't the economic life span of farmland a undefined or least very long time?
Just curious?
It would seem to me that farmland can be thought of like gold, something to own as a store of wealth. As long as it earns enough to pay the taxes, maintain itself and return the current inflation rate of the purchase cost that could be sufficent for some investors. Currently the inflation rate is at about 2% or for $15,000 is $300 plus $75/A taxes. So $375 in rent might be enough and there is always the possibility that certain persons could engineer a $100-150 loss in to a tax saving to offset other income.
Farm Income and Land
