two_bit_score
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With 15 he would likely qualify for an Ag exemption and the taxes would be almost nothing on 14 of those acres.
How to justify buying a little piece of property?
- Thread starter needmoredirt
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Carl_NH
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There appears to be a ROW on the lower left corner of the 33 AC off My Zion Rd. Find out who owns this strip of land and then you have a saleable lot of 10 or so acres and maybe come out even. The issue is these 22 acres are landlocked and landlocked value is up to the abutters only.
So either buy at a better price w/o access (say 5K per acre) or buy that strip of land get a deeded ROW access for road and electric then it becomes valuable.
grsthegreat
Super Star Member
About 6 years ago a neighbor that had allowed us to run our horses on her 10 acres wanted to sell it and move. I really didnt want more land, but wife really liked having it to let horses out.
she wanted 69,000 for it. I thought that was ridiculous high, but wife nagged me into buying it . She took 65k cash sale.
today i could get $300,000 easy for it. Neighbor down the way has 10 acres on market for $499,000. Nothing on it. Hes nuts. That will never sell…..or will it.
she wanted 69,000 for it. I thought that was ridiculous high, but wife nagged me into buying it . She took 65k cash sale.
today i could get $300,000 easy for it. Neighbor down the way has 10 acres on market for $499,000. Nothing on it. Hes nuts. That will never sell…..or will it.
shooterdon
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$35k/acre for what??? A bit of privacy? He has no comps to see what it is worth.
Like I said earlier, if you need privacy, sell what you have, spend the additional $350k and buy LOTS OF LAND in a more remote area.
The OP wanted to know if he could farm it to break even. Seems he cannot afford it unless it generates enough to cover the note on $350k, taxes and operating costs...what will that be?
OP, DO NOT LISTEN to enablers. If you have a CPA talk to them. Nearly everyone telling you to buy it has not told you how to cover your costs...only the "feel good" stories of their purchases that worked out for them. And none of them invested $350k. Even in bidendollars that is a lot of change.
Like I said earlier, if you need privacy, sell what you have, spend the additional $350k and buy LOTS OF LAND in a more remote area.
The OP wanted to know if he could farm it to break even. Seems he cannot afford it unless it generates enough to cover the note on $350k, taxes and operating costs...what will that be?
OP, DO NOT LISTEN to enablers. If you have a CPA talk to them. Nearly everyone telling you to buy it has not told you how to cover your costs...only the "feel good" stories of their purchases that worked out for them. And none of them invested $350k. Even in bidendollars that is a lot of change.
Torvy
Super Member
That's a lot more than here in the Piney Woods. Maybe 5x the price. We paid less than $5k an acre 2-3 years ago.
Are they pricing it for housing developments? Or are you really close to a city or Interstate hiway?
If you could buy the 10 keep some near you and develop some to sell at a profit. Otherwise, you are probably stuck seeing someone else develop it.
Are they pricing it for housing developments? Or are you really close to a city or Interstate hiway?
If you could buy the 10 keep some near you and develop some to sell at a profit. Otherwise, you are probably stuck seeing someone else develop it.
Yander
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$350k is a lot more to some than it is to others. That is a lot of money to me. You can give up on trying to recover the cost with anything conventional (i.e. Hay, crop farming, beef etc.).
Unless you are a multi-millionaire and that is not much to you, I would pass.
Unless you are a multi-millionaire and that is not much to you, I would pass.
etpm
Veteran Member
Where I live it is semi-rural. All the land around me is zoned at 5 acres minimum. Smaller lots can be grandfathered in but if you have a 9 acre parcel you can only build one house. If there are wetlands this restricts house building and well drilling even more.
We are on 10 or 12 acres and there is a 5 acre parcel adjacent to our land with a creek running through it along with associated wetlands. The parcel is long and narrow and the creek and wetlands run the length along one side. The side farthest from our land. There is a house, a double wide actually, that is about 50 years old. And two shallow wells.
Because of the wetlands on one side and our property line on the other side it is hard to build a house. The existing house in fact encroaches on the property line setback by several feet.
My wife and I would like to buy the parcel. Our son and daughter in law live there now. My wife and I bought our parcel 29 years ago, we occupied the house we had built 17 years ago, and have lived within 3 miles for 28 years.
Even with the wetlands and the crappy house and the shallow wells and the rural 5 acre minimum zoning the land next to us might be worth as much as 70 grand. Per acre. And my wife and I are willing to pay it. Not because we can make money from it, but because we will be able to control who lives there. And because we will be able to protect it.
In fact, controlling who lives there is only part of the reason we want the land. The extra land next to ours would give us more land to build walking trails. And the wetlands would be included in the trail system. My wife and I both love the wetlands. There are no fish as far as we know but lots of frogs. And the water flows year 'round and because of the topography a pond could be easily made. And our trails could be connected to trails on some neighboring property, trails that we already have permission to walk on. Also, as I said previously, we can protect the land. It is a nice parcel and we don't want to see it get logged off. Or have neighbors who dump all their garbage on the land. Stuff like that. If we own it then we can do our best to protect it. Like on the land we own now where we use no pesticides or herbicides.
The upshot is that there are lots of reasons to buy land. Making money off of the land right away may not be the only reason to buy land. In our case we plan to never make money from the land. We expect to give it to our son and his wife when we die. Land is different from other purchases because there is truly a finite supply. Even so the value can change for many reasons. Zoning changes, the economy, the proximity of new shopping centers are all examples of things that can cause drastic changes in valuation.
So you need to decide why you want the land, then you can decide if you want to pay the price. I know that if we are able to buy the land next door we will really have a hard time parting with the money. But a few years later we will be glad we made the purchase, especially me because I will have 5 more acres to use my tractor on.
We are on 10 or 12 acres and there is a 5 acre parcel adjacent to our land with a creek running through it along with associated wetlands. The parcel is long and narrow and the creek and wetlands run the length along one side. The side farthest from our land. There is a house, a double wide actually, that is about 50 years old. And two shallow wells.
Because of the wetlands on one side and our property line on the other side it is hard to build a house. The existing house in fact encroaches on the property line setback by several feet.
My wife and I would like to buy the parcel. Our son and daughter in law live there now. My wife and I bought our parcel 29 years ago, we occupied the house we had built 17 years ago, and have lived within 3 miles for 28 years.
Even with the wetlands and the crappy house and the shallow wells and the rural 5 acre minimum zoning the land next to us might be worth as much as 70 grand. Per acre. And my wife and I are willing to pay it. Not because we can make money from it, but because we will be able to control who lives there. And because we will be able to protect it.
In fact, controlling who lives there is only part of the reason we want the land. The extra land next to ours would give us more land to build walking trails. And the wetlands would be included in the trail system. My wife and I both love the wetlands. There are no fish as far as we know but lots of frogs. And the water flows year 'round and because of the topography a pond could be easily made. And our trails could be connected to trails on some neighboring property, trails that we already have permission to walk on. Also, as I said previously, we can protect the land. It is a nice parcel and we don't want to see it get logged off. Or have neighbors who dump all their garbage on the land. Stuff like that. If we own it then we can do our best to protect it. Like on the land we own now where we use no pesticides or herbicides.
The upshot is that there are lots of reasons to buy land. Making money off of the land right away may not be the only reason to buy land. In our case we plan to never make money from the land. We expect to give it to our son and his wife when we die. Land is different from other purchases because there is truly a finite supply. Even so the value can change for many reasons. Zoning changes, the economy, the proximity of new shopping centers are all examples of things that can cause drastic changes in valuation.
So you need to decide why you want the land, then you can decide if you want to pay the price. I know that if we are able to buy the land next door we will really have a hard time parting with the money. But a few years later we will be glad we made the purchase, especially me because I will have 5 more acres to use my tractor on.
airbiscuit
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X 2 on talking with a CPA. Find out what kind of tax savings/depreciation schemes might be available. The most money for the least work on property that I know of is Storage Units.
quicksandfarmer
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If $35k/acre is really the market value, what is someone willing to pay that going to do with the land?
4570Man
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I don’t know where the OP is located but taxes in TN are already cheap. I pay like $200 for an undeveloped 4 acre piece of property and it’s in the city limits which charges about the same amount again. Cutting my $400 tax bill certainly wouldn’t persuade me to spend $350,000.