Whats everyone thing land prices are gonna do...

[Locoweed]

I think that prices will rise over time, but I think that taxes will rise significantly as local governments look for more money.

 

[Gary Fowler]

We paid $2250 per acre for 40 acre tract in 2008, now advertised prices are $5000 to 10,000 per acre depending on location and size. Smaller tracts are more than larger ones. I dont have a clue if they are getting anywhere close to the asking price though. The land anywhere close to me is very rocky and only good for pasture whereas 50 miles south is pretty well sandy clay loam which is good farm land. The $5000 per acre would be hard to make payments on farming and I have no idea what a farmer would raise to make a payment on $21K per acre (4% per annum would be $840 per year interest +1020 in principal @ 20 years) Only marijuana growers could make enough money on an acre to pay that kind of money for farm land. A land speculator might make his money back on sub-division property by buying and developing it into a community if it was close enough to a city AND the local economy was good for housing.
Not much in the way of row crop planting ie corn, soybeans,cotton, wheat etc. would bring in enough money to justify paying $5000 per acre unless you were investing cash money as a hedge against inflation. Borrowing money to buy land at those prices would never return your investment.

 

[Bday]

Had a farm auctioned off last month here in northern indiana went for $11,000/ acre. In 1994 farm ground was $2000/ acre. I'm waiting for the ethanol bubble to burst!! That's what's driving the market here.

 

[Tomtint]

I'm not a farmer. I have bought and developed land for residences here in Mass. Buildable lots ( nice ones) are tough to come by out here. That being said, a "nice" 1 acre lot will set you back about 200k in the raw. A real nice 1.5 acre lot is north of 225k. Builders are just not blowing them out and taking the hit. They are willing to hang on to them. I first started buying property in 1997, my first buy was a home for 181,000 I sold it 9/01/01 for 325,000 ( we did moderate upgrades, about 45k worth) That home today would not fetch 300k. There are properties on the market that are listed for 100k less than it would cost to reproduce. The only thing that will push land/ home prices up is if the banks quit squatting on the purse and govt creates different programs that let banks lend again.

 

[sweettractors]

If you can buy land with young timber, you will be in the cat bird seat. You will eventually have mature timber to harvest and more importantly, before long, you will be allowed "carbon credits" to offset the carbon you and your family are responsible for producing. Ken Sweet

 

[Rustyiron]

What are land prices gonna do over the next 5-10 yrs....20 yrs......?
Good time to buy at current rates...?
thanks for input....

Good question! I just hope the past 4-5 years is not the "new normal" that you keep hearing in the new vernacular of the left. Who knows anymore, things are getting incredibly off track in this country in my opinion, and will soon be damaged beyond the hope for any quick fix's.
I did not intend to get "political" here, all I know anymore is, have enough land to grow what you need to live, including firewood (heat) and be able to defend it! (both r.e taxes & otherwise)
Every issue I get of "Progressive Farming" shows these unreal prices paid for farmland in the mid-west. This is an exception in R.E. but like the stock market, falsely proped up (by ethanol and large agri-business).

 

[dave1949]

I am definitely not in the ethanol bubble here, the dog did make some methane last night.

Property (bare land) values, excluding large timber tracts, here are stagnant and probably back to year 2000 levels, if you can find a buyer. Our land sales are fairly dependent on out-of-state buyers having enough disposable income to buy second home/vacation/recreation base/retirement properties.

I doubt if there is much money to be made by buying land here now and holding it for say ten years. The exception might be to buy from someone who has to unload a nice waterfront parcel now, and is selling at a reasonable price. Property taxes will take 2% to 3% off of any annual gains.

 

[zzvyb6]

The Asians will probably start bidding on the choice parcels. They have the money they have the forethought and they have many to thank for all the purchases made by Americans.

 

[Rustyiron]

Thank goodness for them, ...the people from away. As much as they may interrupt your town in the summer, they pay a ton of prop taxes in ours!

 

[sweettractors]

The Asians will probably start bidding on the choice parcels. They have the money they have the forethought and they have many to thank for all the purchases made by Americans.

Ain't it ironic that we have bought their junk and then time comes around when they buy our prime farmland? What do we have for our money spent? What do they have for their money spent? Ken Sweet