|
| I bought my first farm 120 acres from two churches that inherited this land I was farming. I bought it for $900 per acre with $25K down. 8% interest for the first 4 years and 9% for the remaining 6 years amortized over 20 years with a balloon payment due at the end of ten years. I didn't have it paid for and refinanced with FCS at the maturity of the original contract. It took a few years to get it paid off but I usually paid more than the required amount. The first experience with Farm Credit and a very pleasant experience.
BTW that land would be pushing $5K per acre in todays market.
I didn't start buying land when I was young. I was 38 when I bought the first piece. That was because my focus wasn't on buying land. I was addicted to green paint and it is hard to accumulate down payment money when you are suffering from such an addiction. Also working capital tied up in an IRA makes it more difficult to raise down payment funds.
Thus if land ownership is your objective, you need to focus on strategies that make it possible. A land mortgage does give you discipline to make payments rather than compulsive spending. You pay the mortgage because you must and for go frivolous spending. Also I always like to pay more principal than the required to get the debt retired sooner Then you can save for the next purchase.
| |
|
Buying Your First Farm
