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Land

Great thread guys, thanks for the input and angles, it has given more to think about and a better understanding.
 
I haven't but I know people that finance their land out of a self directed IRA, which could originally come from a 401k. Not as liquid of an investment but not a bad way to go. Guessing it would have to be from a Roth or else you have to pay attention on how to keep the land and satisfy the minimum distribution when you hit 70.5
 
Ried#3 said:
Silly question.....when you buy land do you pay any type of sales tax or just when you sell?
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You will have property taxes and closing costs, but no "sales tax"...if you sell in the future for a profit you'll be taxed for capital gains.
 
if there is an 80 acre piece, 30 tillable 50 timber, i can do the 20 percent down, but how do u guys afford the high payments? am i missing something, i know guys who make less than i do and have land about the same size
 
If I could roll my 401k or IRA into land, I'll do it in a nano-second. You guys may be setting me up to get in a lot of trouble with my wife! ;) I'll get out of this "fake" market that's a digit on my computer screen & set of #'s on paper sent to me periodically - i'll get out in 2 seconds if I can. I have zero control on how my stocks go and I've seen them get cut almost in half 3 times ( & come back to be fair) but I can't do anything to improve them, live off them, grow anything on them or know it's not a gimic period. I just personally have no "faith" in stocks & all that crap vs land for "real" investments that I trust & see common sense in owning. Gold & silver even seem silly to me. Maybe a notch above a stock certificate BUT still, seems like a gimic and if things "get bad".. . what the heck are you gonna do with a gold coin VS being able to grow a crop, catch a fish or shoot a deer to feed the family. I am glad most people don't do land as investments as it would drive the price to insane levels BUT I just can't talk myself into thinking all this other junk is smart to invest in even though I do it.
 
jerred44 said:
if there is an 80 acre piece, 30 tillable 50 timber, i can do the 20 percent down, but how do u guys afford the high payments? am i missing something, i know guys who make less than i do and have land about the same size
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Just like everything in life brother, you'll have to prioritize your spending if land ownership is your goal...less eating out, drive older cars, downsize your primary residence, etc. The most important thing to remember that buying land is an investment. Like mentioned earlier, buy a smaller piece then put lipstick (improvements) on it and keep turning them for larger pieces.
 
Sligh1 said:
If I could roll my 401k or IRA into land, I'll do it in a nano-second. You guys may be setting me up to get in a lot of trouble with my wife! ;) I'll get out of this "fake" market that's a digit on my computer screen & set of #'s on paper sent to me periodically - i'll get out in 2 seconds if I can. I have zero control on how my stocks go and I've seen them get cut almost in half 3 times ( & come back to be fair) but I can't do anything to improve them, live off them, grow anything on them or know it's not a gimic period. I just personally have no "faith" in stocks & all that crap vs land for "real" investments that I trust & see common sense in owning. Gold & silver even seem silly to me. Maybe a notch above a stock certificate BUT still, seems like a gimic and if things "get bad".. . what the heck are you gonna do with a gold coin VS being able to grow a crop, catch a fish or shoot a deer to feed the family. I am glad most people don't do land as investments as it would drive the price to insane levels BUT I just can't talk myself into thinking all this other junk is smart to invest in even though I do it.
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Exactly my thoughts, I'm putting money in a 401K just to roll-over at some point in my life to land. Land is the last thing to not have any value and I'd much rather plant trees on dirt than try to figure out the next "hot" stock tip to invest in.
 
Hodge said:
Has anyone rolled their 401K into a land IRA, or anything like that?
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I have...main thing is you have to follow guidelines so you can use/hunt your farm. You might have to split the land IRA and non-IRA.

Typically no CRP or farming the ground yourself in an IRA!
 
Hardwood11 said:
I have...main thing is you have to follow guidelines so you can use/hunt your farm. You might have to split the land IRA and non-IRA.

Typically no CRP or farming the ground yourself in an IRA!
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The way I read it was you could do zero work or anything on the IRA portion. Have to get others to put in fence, farm it etc etc and no immediate family either.

Still beats the heck out of stocks IMO :D
 
I read that any money made off of IRA land has to go back into the IRA. (cash rent)


And the taxes need to be paid by the IRA account...

Is this true?
 
arm said:
Farm Credit Services of America will get you the longest fixed term at the best rate...most likely. Any small town bank in Iowa will offer lending to Ag land but not much for long terms unless you can put a bunch down.
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I like this advice.
 
arm said:
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
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Holy cow you are on the money IMO.
 
Anybody have a link or information on the land IRA??? I have a feeling I may not sleep tonight :)
 
Google self directed IRA. I've looked into it and you can't hunt it or basically do anything on it yourself. What's the difference in breaking that law and your new neighbor breaking game laws?
 
Well fellas, call me crazy but there isn't a "land IRA." Its simply a self directed IRA where you invest in real estate which can include land. Self directed means you make the decisions on what/where/when investments are gone. Its a business transaction...everything must come out of the IRA and everything must go back in. I'm sure there's tax implications including penalties if you don't follow the law. I don't know any more of the specifics. If it were me, I'd talk with a financial planner or my accountant and get the facts
 
tslc said:
Google self directed IRA. I've looked into it and you can't hunt it or basically do anything on it yourself. What's the difference in breaking that law and your new neighbor breaking game laws?
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Yeah, I don't know of anyone financing this way that doesn't hunt the ground. I'm not saying that's right or wrong :)
 
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