Are tractors and equipment a good investment right now?

[aircommuter]

Holding value versus holding purchase price are two different things. Investments must go past original purchase price.

 

[ultrarunner]

Holding value versus holding purchase price are two different things. Investments must go past original purchase price.

How would all the hours of commercial work be factored?

My CPA has commented on my selling used equipment bought used for more than paid including routine servicing?

Plus depreciation is factored back to arrive at the gain.

My boss bought a brand new Ford and enjoyed it immensely for 5 years including included factory service and warranty and realized more than a 30% gain...

Paid 160k off showroom floor, 5 years enjoyment and sold 210k... not bad return on a Ford...

 

[aircommuter]

Depreciation is not cash value it only reduces the amount of taxes. Taxes aren’t usually 100%.

 

[ultrarunner]

If I have a 20k tractor used in business and after do many years I have depreciated 80% leaving 4k on the books and then sell it for 25k it does create a tax due...

 

[marhar]

I don’t look at stuff like tractors as an investment. Yes I’m sure you can make money buying and selling them but I buy a tractor because I need/want one.

Well said.

Tractors are a bad investment to buy and hold and then sell. There is too much uncertainty to make them an investment. f you have a use for a tractor buy it. If you are looking to make a speculative investment buy a mutual fund.

 

[aircommuter]

Yes or some similar investment including real estate. More risk more potential profit. Generally. I have had mutual funds that did 30% in one year. My real estate has made the most. You need to know when to hold them and when to fold them.

 

[ultrarunner]

There are always good buys… I use to trade in convertibles… buy, enjoy and sell for a profit… I have never sold a car for less than I have in it but then I did grow up around the car business…

 

[Hay Dude]

We have too high of labor costs to make anything here anymore.

Ford, Chevy, and Stelantis (or what every they are today) is negotiating for higher wages and a shorter work week.

Don't be surprised if automation finds a way to save on labor costs for these companies. Unions actually promotes a faster transition to automation than any other force on labor.

Damn right. Technology is our last hope to pull us through.
However, the environmentalists could keep adding so many layers of regulations, that even automated, robotic factories are run out of the USA forever.

 

[5030]

Why I own 3 rental homes.

 

[WinterDeere]

Why I own 3 rental homes.

I grew up helping dad and grandfather with maintenance on their rental properties, and was briefly the owner of about 40 rental properties, after they passed away in quick succession. The trouble I find with rental properties is that they come with tenants, and enough of those tenants are absolutely friggin' nuts that it pretty much ruins the experience, even if most are okay. One bad apple really does spoil the batch.

I could tell some stories, but I found it's hardly the easiest or most profitable form of investment income, unless maybe you're counting on cashing out of the equity they'll eventually build as you age.

I did think at one time about getting into storage facility rental, knowing you're not dealing with residences, but still... renters.