|
| Kind of -- I'd have to double check the numbers but basically the other acres would have to "float" the farm before you were money ahead -- for how long depends on how quickly the land value appreciates. So on a 5% increase in land value (rent should increase about 5% / yr as well) -- about year 15 the guy thats renting will be paying the same rent as what the land payment you signed on to make 15 years before costs. Example -- your land payment may be $100 / ac for the term of 30 years -- the guy that started renting was paying $50 / ac in year one of your purchase -- by year 15 you'd both be paying $100 - except yould be buying and theyre renting. (just threw numbers out) In a similar situation if you figure a 2% increase you may pay $100 and at year 15 the guy renting is paying $65 while you pay $100 | |
|
Since land is hot topic today
