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NEIN | That is a generalization because it is not a linear graph but the idea that land value and has an inverse relationship to interest rates is well know and applies to other capital items as well. (such as houses) Tax brackets come into play as well when interest rates rise because the deduct-ability of interest is more "valuable' to a person in a higher tax bracket. A simple example though would be 3k land and 10% interest an acre would carry a 300$ per acre interest charge that is fully deductible while a 6k acre at 5% interest would have the same but still twice as much principal to pay off that must come from after tax dollars making it much harder to pay for given the same gross revenue per acre. | |
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$$$ are going to be way short this year.
