Posted 11/28/2022 19:48 (#9955053 - in reply to #9954198) Subject: RE: Pick this apart, land inflation
SE Iowa
Your $450 purchase returning 18.8% a year appreciation would be worth $2996/acre in 11 years, not 30 years. Cowboy math seems pretty shaky. A 7% appreciation doubles every 10 years approx. So 450 to 900 in ten, 900 to 1800 in 20 and 1800 to 3600 in 30 years. Now figure a 1980-81 purchase when land peaked. Here land brought $3000 and by 1987 it was $1000. Variable Land Bank loan was 9% in 1979 and peaked at 16% a few years later.
Pick this apart, land inflation
