- Thread starter Dalet
- Start date
It's not about beer's guys. It's about how farmland and tractors are selling. I am just wondering where I should spend some hard earned cash. I have some land, that I won't sell, but may mortgage, depending on things. Some tractors are bringing big bucks, but you have to pay that for them.
I suppose land is the better investment. Thanks.
I suppose land is the better investment. Thanks.
Fergienewbee
Well-known Member
A no-brainer for me. I'd buy land. They're not making any more. Steel value is in the eye of the beholder. I knew a guy who bought old shotgun shell boxes for his retirement. Paid big bucks up to $600.00. He needs to find someone more interested than himself to make any money.
Larry
Larry
Land is selling a record high prices. I think long term it will be an OK investment but short term not so much. All it takes is the grain prices to fall some and the land will drop a good bit in price. Also higher interest will also will move investors out of the land market then as well.
As far as old iron I would be real cautious on buying any for an investment. The price of collectible old tractors is a very fickle market. The common stuff is falling hard in price the last few years. I have seen some real nice tractors sell the last few months that did not bring much. It has to be rare to have held its value. Even then the big money is down on them too.
The age of the collectors is changing. The guys that drove many of these tractors as kids are passing on. So that is making the market change.
I would be an example of that. I have a few JD two cylinder tractors but only because they have some family value. They where a crude tractor when new and have not improved with age. I do collect the new generation tractors. Even thought they are just a few years newer they have many more creature comforts so they are much more user friendly. As I have gotten older the allure of an old hand crank tractor has waned. LOL.
As far as old iron I would be real cautious on buying any for an investment. The price of collectible old tractors is a very fickle market. The common stuff is falling hard in price the last few years. I have seen some real nice tractors sell the last few months that did not bring much. It has to be rare to have held its value. Even then the big money is down on them too.
The age of the collectors is changing. The guys that drove many of these tractors as kids are passing on. So that is making the market change.
I would be an example of that. I have a few JD two cylinder tractors but only because they have some family value. They where a crude tractor when new and have not improved with age. I do collect the new generation tractors. Even thought they are just a few years newer they have many more creature comforts so they are much more user friendly. As I have gotten older the allure of an old hand crank tractor has waned. LOL.
MarkB_MI
Well-known Member
- Location
- Motown USA
As an investment? They both stink. Collectibles are fine as a hobby, but don't expect any big returns. Non-income real estate is a losing proposition: you're betting that land prices will rise enough to recover what you lose in taxes and lost income on your investment. And farmland prices are sky-high right, now; there's no way you can buy farmland then turn around and rent it at a profit.
What's a good investment right now? Rental homes, particularly in areas where housing prices are severely depressed. Buy them cheap, fix them up and rent them out. It is WORK, but can be very profitable.
What's a good investment right now? Rental homes, particularly in areas where housing prices are severely depressed. Buy them cheap, fix them up and rent them out. It is WORK, but can be very profitable.
i see your point me id buy tractors mainly just to help preserve some that should be, land is iffy like here, for example, pre-external_link land prices were sky high, like 13000 per acre for unimproved range with no water, [ developer pricing] then several things happened, first the economy tanked, which made developers stop buying land to throw up cheaply built high priced housing for the wealthy to buy, then 2 major huge wildfires destroyed much of the watershed. so local water is scarce, there still trying to sell land, but nobody is buying , we now have realtors working at walmart to make eating money , tractors will always appeal to people with money to buy them just have to be some trucking cost considered when doing so
Traditional Farmer
Well-known Member
- Location
- Virginia
I bought Silver awhile back mostly when it was $12 to $13 an ounce it went up to almost $50 now its around $34 still over the last last five years I've had it its a good thing to own especially since there are no maintenence costs to it like real estate taxes.Gold and Silver will continue to hold its own most likely against the falling value of the US Dollar as more and more are flooded into the economy thru the Fed/National Debt scam.Land should also maintain a certain value but farmland is on a bubble now and will have to burst before its a good buy.
Long term land is the better investment.
Both are overpriced in an ag-bubble. We are hearing of
invested types that have no knowledge of farming buying land
because its past performance makes it a good investment.
This is a -classic- sign we are in a bubble and land is
overpriced. If you are farming another 20 years and the farm
next door is up for sale and you have some cash, it can still be
a good buy even at these inflated prices, but before you are
done with it it will be valued much lower.
Iron - that is a fickle market, scrap iron is high priced for old
stuff, farmers have cash to spend on newer stuff, so again
prices are high, probably not a good investment situation.
Paul
Both are overpriced in an ag-bubble. We are hearing of
invested types that have no knowledge of farming buying land
because its past performance makes it a good investment.
This is a -classic- sign we are in a bubble and land is
overpriced. If you are farming another 20 years and the farm
next door is up for sale and you have some cash, it can still be
a good buy even at these inflated prices, but before you are
done with it it will be valued much lower.
Iron - that is a fickle market, scrap iron is high priced for old
stuff, farmers have cash to spend on newer stuff, so again
prices are high, probably not a good investment situation.
Paul
"If you ain't got land, you ain't no kinda man." Remember that quote? Anyway, if the poopy hits the fan as far as an economic collapse-land will be one of your most valuble assesets. Especially if it's paid for. And the more you have, the better off you will be. Even those who have only a few acres will be far better off than those who have none. Besides, a horse will be worth more than any tractor in desperate times.
I understand for tax purposes that farmers who have made good money on the high crop prices the last few years are buying new equipment and writing off the expense against their taxes (along with all the other expenses). Makes sense to be more efficient with newer and bigger stuff and not paying Uncle external_link more in income tax. Might be even more important if he gets his way and ups the rate on the so-called "rich". A friend over in Indiana (runs 3-4,000 acres with a couple of partners) has nothing but new equipment and new barns to put it in.
I'd buy silver and keep a healthy reserve of cash.
Right now land is too high priced, couple that with higher interest rates that will come and it will look like the late 1970s early 1980s all over again. Equipment will go the same way - especially used equipment. High interest will drive down the price making it a buyers market for people with cash.
The other problem with land is property taxes. Most states value property taxes based on production value rather than market value. With states getting tax hungry to cover their exploding unfunded pensions you can count on that ending. Who do you think state legislators are going to listen to - a small contengent of farmers or the unions that decide if you keep your office.
Right now land is too high priced, couple that with higher interest rates that will come and it will look like the late 1970s early 1980s all over again. Equipment will go the same way - especially used equipment. High interest will drive down the price making it a buyers market for people with cash.
The other problem with land is property taxes. Most states value property taxes based on production value rather than market value. With states getting tax hungry to cover their exploding unfunded pensions you can count on that ending. Who do you think state legislators are going to listen to - a small contengent of farmers or the unions that decide if you keep your office.
pat sublett
Well-known Member
Down side of buying land is TAXES will eventually get you.
Taxes are a big deal. I wonder if mortgaging land and buying anything is profitable anymore. It's either capital gains tax, sales tax, license tax, seems like its time for a Tea Party. The Gov is controlled by and for City Slickers. They tax the hell out of everyone and cry when they have to make a budget.
I have to do that for the bank every year and don't cry about it.
I have to do that for the bank every year and don't cry about it.
MarkB_MI
Well-known Member
- Location
- Motown USA
mb58, your idea that holding land is good hedge against an "economic collapse" flies in the face of past history. During the two biggest financial crises of the past hundred years (1929 and 2008), anyone holding real estate saw the value of their assets drop to almost nothing. And folks fortunate to be holding cash were able to make a killing buying land dirt cheap and selling it later at a profit.
I wasn't thinking about it's monetary value. I was thinking about it's value as a place to survive on. Thousands of people returned to the "family farm" during the depression of the 1930"s just to survive. My grandparents had no money during the depression but they had land and made out quite well. Unless you have your money buried in a jar in your yard your going to lose it too. Gold and silver in your hand will be ok. Gold and silver credited to you on some piece of paper with be good for starting fires. I"m also aware that if you buy land and don"t have it paid for-you will lose that as well.
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