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Post by carlos on Feb 17, 2024 9:11:46 GMT -6
When Avenue Living had it rent was 100 bu cks an acre. Someone even said it was 118. Other land in the area is going for 70ish an acre.
When I bought a half section in fall 2018 it was 2250 an acre for same comparable land. Looks like it doubled in 6 years. Will it keep going up, who knows. We r seriously thinking of selling now too.
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Post by kenmb on Feb 17, 2024 9:26:49 GMT -6
If the currency keeps being devalued, then yes, land will keep going up. Cheap debt will be a great way to continue devaluing the currency.
Buy, hold or sell land - no right or wrong. The only thing that matters is don't hold dollars. Buy land to get rid of dollars is ok. Sell land to buy another asset is good. Hold an asset is the way the game is played to be wealthy because asset values are independent of the $$$. Land is always land, it doesn't change in what it can be used for and so it always has the same value.
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Post by carlos on Feb 17, 2024 10:30:46 GMT -6
You sound like my son Ken! He says I'm stupid to hold on too it. Both my sons aren't interested in farming.
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Post by carlos on Feb 17, 2024 10:31:16 GMT -6
Sorry, he says I'm stupid to sell it.
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Post by kevlar on Feb 17, 2024 11:18:47 GMT -6
My kids just say I’m stupid no matter what I do 🤷♂️
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Post by meskie on Feb 17, 2024 11:22:14 GMT -6
My kids just say I’m stupid no matter what I do 🤷♂️ I was gonna say the same thing |
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Post by kenmb on Feb 18, 2024 9:58:15 GMT -6
People don't understand what a dollar is. Those that do will make some stupid decisions compared to those who don't understand what a dollar is.
I was a kid in the 80's and saving dollars was what we were told. Turns out that was exactly wrong. You need to convert dollars to tangible assets as soon as you can. It's why the stock market gets all these dollars. Not because the stocks themselves have value (look at price to earning ratio these days), but because the Ponzi scheme have people getting rid of dollars for something else.
So the problem with selling land now is what do you so with the dollars? If you have some destination for them than that's good. A GIC at 5.1% isnt too bad. But there are other concerns like not having something tangible. Is holding a GIC a comfortable thing? Sure. And stocks? Sure. But maybe don't have zero land and all stocks.
Taking on debt to buy land solely for the purpose of thinking the dollar value goes higher may be a bad idea. Hard to say. Depends what a guy presently owns. I don't think that is a smart idea but we need to see the future to find out. And just because it goes up in dollars, and everything else goes up in dollars (food, housing, energy) then you made zero gains and paid interest on top of it. If it cash flows and turns a profit that is different. If you build a house there and retire then that is a different model also.
In a nutshell, a guy shouldn't pass judgement on some decisions.
A true story is a buddy of mine I curl with all the time sold his land about 6 years ago. Too small to expand to keep farm viable so took the cash. Paid off his debt. Works for another bto during busy seasons, so somewhat retired you might say. But sold all land. One piece across road from his house the guy set up a +200,000 bu bin site, under 1/4 mile away. Now he looks at bins and hears fans runnings on nice fall days instead of owning an asset. That particular decision was a bad one. Should have held some land at the very least and rent it out, particularly the stuff nearest your yard so you can have control. That is suppose is another intangible point of owning land that does not get a $$$ value put on.
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