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  1. #1

    farm land prices - got a big well ?

    an associate's family has a farm for sale...
    so, i've been watching the pricing and action.

    immediately the pricing was 1/3 more than i thought was a right price... i thought they were dumb to price it that high... I was wrong. bad wrong.

    then they raised price!

    the farm has good record for commodity poundage... well above average...
    that helps the value..
    it is rural... no one wants this land for a housing subdivision.

    this is the wrong time of year to be buying or selling farm land. farmers want to worry about and work with their current crops, then, if all goes well this year, this fall they will consider buying additional acreage.
    however, three things are happening..pushing prices up.

    1... wells... the government is limiting permits for wells... the big wells that are used for irrigation... maybe even not allowing a permit. period for the easy to get water... if you want to go down to the deep aquifers,, then maybe you can get a permit, but digging deep costs hundreds of thousands of dollars. so, if you have an irrigation well, your property value just went up.
    2... demand... foreign buyers are buying u.s. farmland... china... and others.
    folks are leaving the big cities and looking for farms and retreats... big $$ coming in with cash and quick closings. doctors, business owners, professionals, oil folks,
    from out of state in big money category.
    little money, homesteaders, scared city dwellers, retirees with big 401's and stock accounts, are coming in looking for small 10 to 100 acres .
    many counties have -0- properties for sale. or just one or two.

    3... cost of money.. interest rates are low... more than on a house only property, but still very low. purchaser can spend more for a property at 4% than he can when rates are 8%

    comments?
    how are things in your area, especially if you are rural. or familiar with a rural area.

  2. #2
    Randomly looking for land in a different area. Something to later downsize to with a smaller tract.

    Always surprised when I see listings that I think "dang that's overpriced" sell in a day or two.

    Cheap debt is fueling most of it I assume.

    We learned nothing from 2008... Wait for it, wait for it.... Your going to hear all the crybaby BS like you did after the last housing bubble popped- "those EVIL corporations that just MADE me sign a mortgage on this 6,000 sq foot McMansion...." and all that typical amerikan "it ain't MY fault!" BS that has gotten us to this crappy place in history.

    Last bubble we sat out in a 1,200 sq foot paid for house while I heard everyone I know brag about how their McMansions were now "worth" $50 or 100K more than they paid. None were smart enough to sell at those inflated prices, take the money and downsize or move to a cheaper area. Nope they bought again at the new higher prices.

    While everyone was starving and construction material was cheap a few years after that, we built our addition- paid cash as we built.

    Maybe I'll wait to buy more property after Bubble 2.0 breaks.

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  3. #3
    A nice couple purchased the home next to mine a year ago. They wanted a place in the mountains to retire some day. They have been working on it as they can…8-10 hour drive depending on ATL traffic. As the prices went up here, they decided to cash-in and wait until closer to their actual retirement. They got $100k more than they paid. Some city dwellers are panicking and paying too much which is driving the prices up. 2-br, 2-ba, 1 acre, not suitable for a garden. $300k.

  4. #4
    Quote Originally Posted by Bill Foster View Post
    A nice couple purchased the home next to mine a year ago. They wanted a place in the mountains to retire some day. They have been working on it as they can…8-10 hour drive depending on ATL traffic. As the prices went up here, they decided to cash-in and wait until closer to their actual retirement. They got $100k more than they paid. Some city dwellers are panicking and paying too much which is driving the prices up. 2-br, 2-ba, 1 acre, not suitable for a garden. $300k.
    Yooozers!

    We have been talking about and checking out some other places, land, etc. Wife says I'm cheap and tells me "your not going to find a piece of land for five dollars."

    My reply- "FIVE dollars Clark?" (Vegas Vacation) (Acting like that's a lot)

    But it's true, everything is inflated right now. Told her the other day that we just need to sit with cash and wait till Housing Bubble 2.0 pops and look for a better price. This can't keep up forever.

    "Cheap money" is driving it (again) and when that tightens a lot of these places will be right back on the market for reduced prices while speculators are frantic to get rid of them.

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  5. #5
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    Quote Originally Posted by Lowdown3 View Post
    Yooozers!

    We have been talking about and checking out some other places, land, etc. Wife says I'm cheap and tells me "your not going to find a piece of land for five dollars."

    My reply- "FIVE dollars Clark?" (Vegas Vacation) (Acting like that's a lot)

    But it's true, everything is inflated right now. Told her the other day that we just need to sit with cash and wait till Housing Bubble 2.0 pops and look for a better price. This can't keep up forever.

    "Cheap money" is driving it (again) and when that tightens a lot of these places will be right back on the market for reduced prices while speculators are frantic to get rid of them.
    We're doing the same thing. We would have no problem selling our house, even at current inflated prices, but would have a tough time finding what we would like at a price we could afford. We're sitting tight for now.

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