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| I don't really see why it is so important for the and to cash flow. Land is an intergenerational investment, that will yield rewards long after we leave this orb.
If I want to save every year anyway, I just as well deposit a little on my mortgage as put it in the bank for 2% interest. You sacrifice to pay for one and then use the extra income to buy another and on and on. Some of us don't even want immediate reward as were are interested in lang term reward. There is nothing wrong with subsidizing a purchase if you can see dividends in the future. Not unlike an IRA where you add a deposit each year with the intent of achieving a respectable retirement fund.
My first farm was 120 acres bought on contract for $900 per acre. It didn't cash flow all that great but it has paid for itself and subsidized buying another and another. I guess the point being that we paid "high rent" for the first few years on that property and now we are renting at bargain rates. It's merely substituting short term income for long range growth.
I'm sure the $5000 land is hard to pencil out, but I know I will get it paid for and leave it to my wife and kids. However, if nice machinery and money in the bank is your objective, go for it. I just wish I had swapped my lust for new paint for farm land a decade or so sooner. | |
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Land prices
