Land Lust

[davitk]

Good post.

Farm land is more like 3K/acre, realistically looking at 10 acres.

 

[MossRoad]

Good post.

Farm land is more like 3K/acre, realistically looking at 10 acres.

That's more like it.

 

[Rara Avis]

That's more like it.

Actually land values can vary greatly...my 1/4 section in ND was last valued at $2500/acre...The WHOLE section was bought by my Gma for $23.10 at a tax sale back in the 20's...a couple years prior to that land was very expensive in ND...

 

[wjoerob]

It always worries me when somebody thinks "it's always easy to go deeper into debt." Most people think it, but usually only the banks and credit companies say it out loud. Several bits of info missing here:

What did you intend to use the land for? Farming? Pasture? Looking pretty?
Did you go into debt for the 20K tractor?
What provisions have you made for your family for emergencies?
What happens to your wife & kids if you're disabled or killed?
Is your present place paid off?
Do you have a plan to get out of debt -- EVER?

It's true, they're not making any more land. And it's true, it's a buyer's market. But every breadwinner has the responsibility before God to make sure all of his "ducks are in a row" before indulging in toys and whims. You ought to provide for them first. And the thing is, debt just makes you someone else's slave. This society has poisoned our minds to make us think debt is normal and helpful. In reality, it's poison.

 

[MossRoad]

Good post.

Farm land is more like 3K/acre, realistically looking at 10 acres.

Just so we're on the same page...

Are you looking at 10 acres for 100K or 10 acres for 30K? It makes a whopping difference.

 

[davitk]

"Money site" is on top of hill about 1/3 mile away from us, this has the highest quality building potential. Land accross the street is low, some of it floods and in my estimation is worth 3K/acre at the most. Per conversation with realtor on Friday this may be available at a reduced price which is as of yet, undetermined.

 

[riptides]

It's true, they're not making any more land..... This society has poisoned our minds to make us think debt is normal and helpful. In reality, it's poison.

If you view it as a tool, this person has an opportunity before him. Without this tool, what does he have available?

What do any of us have available when we are starting out? Without the banking system I would not exist. Without taking risk, I would not have the life I have today.

-Mike Z.

 

[Champy]

And the thing is, debt just makes you someone else's slave.

Regarding the comment quoted above. I am not making judgements on debt or not, but would like to relate my actual situation over the past 3-4 yrs. After my father passed away in 2004, my brother and I inherited all the property, house, cottage, Florida home, etc...and life insurance funds. Some we sold, others we kept in a common trust ownership. My wife and I agonized over what to do with the "new" money from the sales....pay off our house; invest in land; buy a vacation home; college funds; etc....not to mention the guilt over the real price paid to inherit this money. We eventually used it to pay off our home and start 529 College funds for the boys.

But the real end result of paying off the house was not simply a financial change/improvement. As my wife pointed out during the "what do we do discussions": Now I do not HAVE to work at the Plant to keep our home. If I am laid off; the plant closes; etc.. I can work at McDonald's to pay the taxes (my wife is a teacher so we get medical through her). This action was a huge burden off my back. I no longer had to stress about losing my job causing us to lose our home, property, etc.. it was very liberating emotionally. And losing the old house payment has increased our overall cash flow, which has allowed us to continue funding the 529 Accounts for the boys college; pay off other debts; buy a tractor; we worry a lot less about our jobs and the family life is more relaxed / happier. I am even expanding my side business (Christmas Tree farm) which has been a great opportunity for me to focus on something I really am interested in versus forced to do.

The bottom line I want to stress is for you to also consider the "other" aspects of your financial decisions. Personal; emotional; ethical; etc....are all affected as outcomes of your money choices.

 

[MossRoad]

If you view it as a tool, this person has an opportunity before him. Without this tool, what does he have available?

Yes, loans are a tool. So is dynamite. You have to be careful with both.

 

[MossRoad]

But the real end result of paying off the house was not simply a financial change/improvement. As my wife pointed out during the "what do we do discussions": Now I do not HAVE to work at the Plant to keep our home. If I am laid off; the plant closes; etc.. I can work at McDonald's to pay the taxes (my wife is a teacher so we get medical through her). This action was a huge burden off my back. I no longer had to stress about losing my job causing us to lose our home, property, etc.. it was very liberating emotionally. And losing the old house payment has increased our overall cash flow, which has allowed us to continue funding the 529 Accounts for the boys college; pay off other debts; buy a tractor; we worry a lot less about our jobs and the family life is more relaxed / happier. I am even expanding my side business (Christmas Tree farm) which has been a great opportunity for me to focus on something I really am interested in versus forced to do.

The bottom line I want to stress is for you to also consider the "other" aspects of your financial decisions. Personal; emotional; ethical; etc....are all affected as outcomes of your money choices.

I agree completely. My wife and I did a good job of paying as we went and never had to borrow too much money. We've had three small mortgages and now we carry a home equity loan for property tax reduction purposes and use that for large purchases like cars and tractors. For all intents and purposes, we have been debt free for over 10 years. It is a great feeling.