Posted 10/14/2021 09:01 (#9268306) Subject: Buy land or wait for lower prices
We are back to 2013 land prices around here, after falling 40% from 13 to 19. So a 40% hike in 1 year. Blame it on whatever, money printing/ covid relief, high farm profits, low interest rates.....there is lots of liquidity now. I think demand from farmers will wane as the inputs jump and gov payments taper off (got some plc money this wk, nothing like 2018-20 though) but my concern is land prices continue higher due to outside investor demand. There is SO much money out there and nowhere to get a stable return in the Financials (negative real returns, anyone? No?) Do you continue to buy land if you have the ability to or could cash actually be the best investment for a couple years? It sure would've outperformed land here from 13 to 19. The economy is so addicted to stimulus and asset price appreciation now that I doubt they can stop the stimulus without a meltdown. I guess my gut says keep buying if you don't plan to ever sell, and put enough down to cash flow the payment on avg profits.