sep0667
Land of the Whitetail
I'd like to buy land, just don't know if it's a good money investment at the moment. With the way the prices are right now, it would take 30 years to pay it off even if you put a big down payment on it.
If you continue to do well in baseball you could get your pick of the litter before you know it.
MO-APE
Member
I have a very long tenured MLB player as a neighbor...funny what that kind of money can do for a fella. He keeps expanding and expanding. I hear he leaves around 200 acres of crop standing just for deer.
ReinertsonTaxidermy
Well-Known Member
The whole key to buying land is saving a chunk of liquid cash for the down payment. The rest is cake.
spltbrow
Member
I would definitely buy. I have 2 farms. One that's 45 min away and another I built a cabin/house on that is 2 hrs. The 2 hr drive is pretty comfortable for me as some nights I will even drive down hunt and come back if I think that is where I need to hunt that night. Bit sure if I would go much further than 2hrs though. I am long to purchase another farm this year but doesn't seem to be much for sale by my farm with cabin. Can't go wrong with buying land. IMO. I do think agg land is overpriced and may come down some????
hoosierhunter
Active Member
Land loans a very different from mortgage payments. See a banker for details, but if you find a bank to loan at 30% down for 20 years you found a great deal. I've seen 30-50% down with 5year amortized at 10.
Like others have said..... typical.... 30% down. rate around 5% give or take right now. Most lending institutions are only locking in for 10 years then the rate adjusts. Google mortgage calculator and you can figure out payment amounts.
There is so much help out there from the 2014 farm bill I would look into that as well. You can get guaranteed loans, down payment loans (at a whopping 1.5%), young farmer, disadvantage farmer, women farmer (involve the wifey), etc, etc, etc.
Lot of info to read about that here. http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/
Good luck.
There is so much help out there from the 2014 farm bill I would look into that as well. You can get guaranteed loans, down payment loans (at a whopping 1.5%), young farmer, disadvantage farmer, women farmer (involve the wifey), etc, etc, etc.
Lot of info to read about that here. http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/
Good luck.
arm
Leg
I hope you didn't sell a bunch off...
loneranger
Well-Known Member
Another thing to remember,,even though you might find a nice spot,,over time, things can change. I bought my land in what I thot was a quiet rural area. I am 20 miles from the nearest large towns,,but a cople yrs ago a Hog Confinement went in 2 miles North of me. When the wind is right, I am treated to HOGS. Last year a John Deere Repair Center went in on an empty bean field a half mile from me. Why they put it way out here on a back gravel road I don't know? But that has resulted in much more traffic past my place,,so,,you never know how your area may change.
Tim Hull
PMA Member
The way to go if you are older as I was 40 when I bought my first farm is to put around 20% down and if you have enough equity in your house is to just refinance your house. I bought my farm and the loan is at 3% for 15 years rather than the rec land rate which would have been 4.5% for 5 years and then it could have ballooned to 9%. I was fortunate that I only owed around 50k on a 200k house and could just refinance the house. On paper my land is paid for. I still get to deduct the house interest for taxes.
Nice thread. I have been looking around for ground and will likely pull the trigger on the next year or so. My question is trading up from smaller parcels. If I buy a 20 acre piece and trade up do you guys do a 1031 exchange for that? Also how long will it take to add value if you have a run down property and you plant trees/grasses ect.?
arm
Leg
You only do that if you are recording a gain from your sale and all you are doing is delaying the tax owed on that gain. I would definitely do it in that situation. Who really knows about how long it takes to improve the value of your land. If I had the answer to that (playing the market basically) I wouldn't be working
Daver
PMA Member
Another angle to consider here...
Preface - I realize not everyone will be in a position to do this, but if you can, there are some benefits here...
If you outright own, or have significant equity accumulated in, your primary residence...you can take a loan against that property and then use the proceeds to purchase farm ground, or for that matter, whatever you want to, but we are talking farm ground here.
Benefits - you can much more easily get your local bank to loan against your house and do so at lower rates AND longer, fixed terms. Potentially huge savings here. Also, you will still qualify for a tax deduction on the interest of the loan on your primary residence...which is often a significant number annually.
Cons - you are then risking your house if you can't carry the payment, etc.
Just a thought to think, if you do consider this route...do your homework and understand it all ahead of time.
Team pewp
Work Sucks!
Unfortunately for me, my "land down payment fund" tanked right along with my 401k. Had about $50k saved up in various mutual funds and lets just say they are not worth $50k anymore.
Unfortunately for me, my "land down payment fund" tanked right along with my 401k. Had about $50k saved up in various mutual funds and lets just say they are not worth $50k anymore.
It will come back, great time to buy more.