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Land prices / insane!!!

I view land as a good investment as long as you pay cash. Once you start financing, the interest will eat you up, so you better plan on keeping it for many years to come. In today's market, I'm not sure I would try to buy any land unless I found a good deal(which is almost impossible right now).
 
Yeah, there aren't many good land deals out there that I've seen.
For those with cash, the dilemma is do you hold onto it, knowing that it's losing 4-7% purchasing power annually during these inflationary times, or do you invest it in land at these prices, or in the market that seems to be falling at the moment.
Timing seems to be more important than ever these days... Everyone seems to advise based on historical data, i guess that's the only reasonable way to think about it.
You have to guess what the money makers (Fed) are going to do... A lot under their control, and preventing a recession i think it's high on their list.
 
I view land as a good investment as long as you pay cash. Once you start financing, the interest will eat you up, so you better plan on keeping it for many years to come. In today's market, I'm not sure I would try to buy any land unless I found a good deal(which is almost impossible right now).
Almost no-one is paying cash for ground (very very few). It can be a great investment if smart about financing.
 
I view land as a good investment as long as you pay cash. Once you start financing, the interest will eat you up, so you better plan on keeping it for many years to come. In today's market, I'm not sure I would try to buy any land unless I found a good deal(which is almost impossible right now).
It depends on many factors. Having the bank pay for part of your land is not a bad option. I usually look for cash flow property where the income matches up with the interest.

In a sense the farmer (cash rent)or the CRP is paying your interest and you are paying the principal. The bank gets the interest, but you get the appreciation. Long term it will almost always work if you know what you are doing.
 
Almost no-one is paying cash for ground (very very few). It can be a great investment if smart about financing.
Even on a small 200K loan for example, you will pay closing costs, and around $600-800 per month in interest alone( that doesn't even include the principal payment). So that farm better bring in a lot of income if you want to have a good investment. Even if a CRP or cash rent situation exists on the farm that pays for the interest payments, that means you are relying on land value increases to earn any income at all(timber logging could be another source of income). So as I mentioned in previous post, you better plan on keeping that farm for many years to come if financing, with land values so high right now.
 
Even on a small 200K loan for example, you will pay closing costs, and around $600-800 per month in interest alone( that doesn't even include the principal payment). So that farm better bring in a lot of income if you want to have a good investment. Even if a CRP or cash rent situation exists on the farm that pays for the interest payments, that means you are relying on land value increases to earn any income at all(timber logging could be another source of income). So as I mentioned in previous post, you better plan on keeping that farm for many years to come if financing, with land values so high right now.
....yes most farms have income. I think 99% of people that have financed land would say it was a good investment.
 
With how low interest currently is and has been recently I think buying is a good deal still. Most loans recently have been 3.25%-4.25%. Add in the income from some tillable or crp and in effect many loans are basically under 3%. If you can make the payments and not be land poor and over extending yourself and have extra dollars you can throw those extra dollars in a brokerage account and you are going to come out ahead. Yes, the investment market is down so far this year, and it could stay down for 2-3 years, who knows, but I bet in 5 -10 years you will come out ahead. Just buy the u.s. total stockmarket fund, vtsax, with vanguard for example, its averaged around 10% return since inception.
 
If you bought a farm before the inflation hit, you are almost guaranteed to be up 25% on your investment. Unless you overpaid? No matter where it is.

Many farms have doubled in last 4 -5 years.
 
I recently read that 1 in 7 homes in America is owned by wall-street. So, approximately 15% (and that number continues to rise). I'd be curious to know how comparable that % is in regards to land. This would also drive up land costs.
 
I recently read that 1 in 7 homes in America is owned by wall-street. So, approximately 15% (and that number continues to rise). I'd be curious to know how comparable that % is in regards to land. This would also drive up land costs.

Makes you wonder why all these oddities.. China, Bill Gates, BlackRock/BlackStone are buying up homes all across America right now. Apparently banking on everyone renting from them someday..
 
I am seeing more titling like this around me. For higher end ag ground. Clearly not for “hunting land”.

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No doubt the out of state investments have been ramping up tillable ground much harder in last 12-18 months. There’s a limited supply of high end dirt …. When inflation hits, other investments aren’t ideal…. Many look to higher end tillable as a “safe bet”. Are they paying “too much” ? Sure. Does it matter to them? NOPE. Even if values cut in half- they don’t care. A lot of investment $ has hit the Midwest ag market…. A lot of other “big names” that put it in an LLC, Corp, trust, etc where u don’t realize who it is. It doesn’t mean these prices will stay high or these folks won’t lose on shorter term values BUT it does speak to the uniqueness & likely, safety, of long term investing in high end ag ground.

On other hand…. The “counter argument” to high end ag ground…. 1) With hybrids making leaps & bounds by the decade- we can grow more on marginal ground. Possibly increasing supply to the point where it puts down pressure on high end ag land prices. 2) “they aren’t making any more of it” - is not quite true unfortunately…. As humans doze out countless thousands or millions of acres of places like Brazilian rain forest- we are rapidly expanding the agricultural areas. Even the dozing you see in the Midwest when grain spikes- astounding. There will be some problems from it…. Droughts will be more prevalent when deforestation happens - no question. We are also ruining some marginal soil ecology & top soil at rapid pace. Maybe hybrids can keep up with this trend, dunno. Sorry on getting into the weeds here ;). Long term- a lot of variables that could change the values of farm land. Does anyone on here care or worry about values 20-40 years from now? Probably not- self included. It’s likely still an extremely good long term investment - even if we saw hybrids change the game or even a human population that actually DECLINED. Then u get into development potential in Midwest (hate it but folks think about it)- if a guy wanted to think in those terms- especially strong long term in growing areas IMO.

Buy it if u can & can handle risk if/when it goes down. But be ready for a lot of dynamics & changes “no one saw coming” in the process. It’s likely a never ending CYCLE. Buy it, enjoy it and forget about the rest of the worlds issues if possible ;).
 
Bill Gates is now the #1 land owner in the US at close to 300,000 acres. And he's buying ALL farmland.

Scary to think they're in all "our" neighborhoods now.. Don't worry, we all own a tiny sliver of their companies and this land in our index funds!! :p
 
Bill Gates is now the #1 land owner in the US at close to 300,000 acres. And he's buying ALL farmland.

Scary to think they're in all "our" neighborhoods now.. Don't worry, we all own a tiny sliver of their companies and this land in our index funds!! :p
I think that is correct on farm land. Overall the guy has the most land of any individual. John Malone (Liberty Media/Sirius XM)F20A87D4-3051-4E0F-BB0A-BF0135A8CD69.png
 
I am seeing more titling like this around me. For higher end ag ground. Clearly not for “hunting land”.

View attachment 122084View attachment 122085View attachment 122086

No doubt the out of state investments have been ramping up tillable ground much harder in last 12-18 months. There’s a limited supply of high end dirt …. When inflation hits, other investments aren’t ideal…. Many look to higher end tillable as a “safe bet”. Are they paying “too much” ? Sure. Does it matter to them? NOPE. Even if values cut in half- they don’t care. A lot of investment $ has hit the Midwest ag market…. A lot of other “big names” that put it in an LLC, Corp, trust, etc where u don’t realize who it is. It doesn’t mean these prices will stay high or these folks won’t lose on shorter term values BUT it does speak to the uniqueness & likely, safety, of long term investing in high end ag ground.

On other hand…. The “counter argument” to high end ag ground…. 1) With hybrids making leaps & bounds by the decade- we can grow more on marginal ground. Possibly increasing supply to the point where it puts down pressure on high end ag land prices. 2) “they aren’t making any more of it” - is not quite true unfortunately…. As humans doze out countless thousands or millions of acres of places like Brazilian rain forest- we are rapidly expanding the agricultural areas. Even the dozing you see in the Midwest when grain spikes- astounding. There will be some problems from it…. Droughts will be more prevalent when deforestation happens - no question. We are also ruining some marginal soil ecology & top soil at rapid pace. Maybe hybrids can keep up with this trend, dunno. Sorry on getting into the weeds here ;). Long term- a lot of variables that could change the values of farm land. Does anyone on here care or worry about values 20-40 years from now? Probably not- self included. It’s likely still an extremely good long term investment - even if we saw hybrids change the game or even a human population that actually DECLINED. Then u get into development potential in Midwest (hate it but folks think about it)- if a guy wanted to think in those terms- especially strong long term in growing areas IMO.

Buy it if u can & can handle risk if/when it goes down. But be ready for a lot of dynamics & changes “no one saw coming” in the process. It’s likely a never ending CYCLE. Buy it, enjoy it and forget about the rest of the worlds issues if possible ;).
Not sure on those exact locations, but those are likely data center related. Facebook, Apple, Microsoft, and Google are all heavily invested into data centers in the metro. Iowa's investment into major fiber, cheap energy, and generous tax credits spurred those investments.
 
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I saw recently that business men associated with the Chinese government were buying up land in the USA. They were also trying to buy land near military bases and the only state that stopped them was Texas. All other states keep letting them buy land up.
 
I saw a story last night that St Thomas University in Minnesota is trying to buy land as they move to Division 1 Football, Hockey etc… they need a new hockey rink, baseball, softball fields, practice facilities.

They offered a local golf course 61 million for 90 acres!! This money often ends up in rural areas as a 1031 exchange.

More competition for the average guy to compete with.
 
I am seeing more titling like this around me. For higher end ag ground. Clearly not for “hunting land”.

View attachment 122084View attachment 122085View attachment 122086

No doubt the out of state investments have been ramping up tillable ground much harder in last 12-18 months. There’s a limited supply of high end dirt …. When inflation hits, other investments aren’t ideal…. Many look to higher end tillable as a “safe bet”. Are they paying “too much” ? Sure. Does it matter to them? NOPE. Even if values cut in half- they don’t care. A lot of investment $ has hit the Midwest ag market…. A lot of other “big names” that put it in an LLC, Corp, trust, etc where u don’t realize who it is. It doesn’t mean these prices will stay high or these folks won’t lose on shorter term values BUT it does speak to the uniqueness & likely, safety, of long term investing in high end ag ground.

On other hand…. The “counter argument” to high end ag ground…. 1) With hybrids making leaps & bounds by the decade- we can grow more on marginal ground. Possibly increasing supply to the point where it puts down pressure on high end ag land prices. 2) “they aren’t making any more of it” - is not quite true unfortunately…. As humans doze out countless thousands or millions of acres of places like Brazilian rain forest- we are rapidly expanding the agricultural areas. Even the dozing you see in the Midwest when grain spikes- astounding. There will be some problems from it…. Droughts will be more prevalent when deforestation happens - no question. We are also ruining some marginal soil ecology & top soil at rapid pace. Maybe hybrids can keep up with this trend, dunno. Sorry on getting into the weeds here ;). Long term- a lot of variables that could change the values of farm land. Does anyone on here care or worry about values 20-40 years from now? Probably not- self included. It’s likely still an extremely good long term investment - even if we saw hybrids change the game or even a human population that actually DECLINED. Then u get into development potential in Midwest (hate it but folks think about it)- if a guy wanted to think in those terms- especially strong long term in growing areas IMO.

Buy it if u can & can handle risk if/when it goes down. But be ready for a lot of dynamics & changes “no one saw coming” in the process. It’s likely a never ending CYCLE. Buy it, enjoy it and forget about the rest of the worlds issues if possible ;).
If I own Microsoft and Apple stock...by proxy I am part owner in this ground. I should have full hunting rights to it all!!!
 
Not sure on those exact locations, but those are likely data center related. Facebook, Apple, Microsoft, and Google are all heavily invested into data centers in the metro. Iowa's investment into major fiber, cheap energy, and generous tax credits spurred those investments.
Was going to post similar. Those sites pictured above are all adjacent to four lane highways.
 
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