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Argh!! Frustrating

D

Dave from MN

Well-known Member
Well, now that I have spent money on cattle, spent money on crops, paid extra on my mortagage, wife bought a new car, and I bought farm equipment, the guy west of me finnally decided to ask if I want that 20 acres adjacent to my west side. I had offered him $80,000 last winter.....before I made all these investments, well the car was a waste of money in my eyes but the wife works hard too. I am having a hard time deciding if I want to go another $60,000 in debt, I really, really do not want some one buying it and building on it. Any opinions? Economy isnt the best right now, but I dont see the company we raise chickens for going under , and we=hen was the last time a doctors office went under.
 
real estate is in a buyers market right now, if you have the capital available, the prices are prolly about the lowest they will get for some time.
 
"the prices are prolly about the lowest they will get for some time."


Agreed - hammer him on the price - it may not be $80,000 any more.

Interest rates are still great if you have a down payment - banks have finally figured out why they used to require 20% down on a purchase.
 
how old are you? And how long do you anticipate, based on the last 3 years' tax returns, it would take to make it back? You are starting with a number of investments--but those will depreciate nicely, helping on the tax forms. I don't know how to classify land on taxes because I haven't bought any yet.
 
With real estate the answer has all ways been yes. If you can swing it and not loose something else. Has been that way for my 80 years and I think that it is more so now. With inflation the money costs nothing to borrow. That is if you can handle it.
 
Think I'd do it if at all possible. I'll not go into detail here, but new neighbors are not always a good thing. Go for it.
 
Buy IT! I made the mistake of not buying the 50 adjoing me to the south. I forgot that if I didn't buy it someone else did. Well they split it into 2 25's and now I have two townies there who are constantly over here aksing for "favors", equipment, help, tools etc.
And oh by the way, they sold for four times what I bought this 50 for.

Gordo
 
Don't know if this is ag land or 'development land'.

If development, I agree the price is down some.

If this is fair to good ag land in Minnesota, it likely is up another 20% in the past 6 months. Farm land is going through the roof, there is certainly no buyer's market!

Aside from that; if you can swing it, might as well go for it. This is your chance, you'll kick yourself every time you see the new buildings on it for the next 20 years..... Easy to spend your money, but sounds like you want to be talked into it. :)

--->Paul
 
Over the years land has been about the best investment Ive made. Includes stocks, IRAs, equipment. Perhaps Gold is a little easier to handle. . . but they are not making any more ground in your neck of the woods and if you have the chance Id say buy it. Jumped on the same opportunity when 75 acres next to dad's 100 came up for sale. . . I had just bought into a new practice, moved, and married so I had quite a few other "investments" going too.
Dave
 
Its actually 21 acres, zoned Ag 4/40. 12 is 12 is tillable land, 8+ is Oak woods with a 2 acre meadow and 1/2 acre sandpit from when they put in the private road. It is the same soil as mine and the tillable is about 1/4 mile from my 12" well so I could water it if I purchase the an irrigation gun, which I am already considering since I have a 500 GPM well and lighter soils already. I also have 30 acres on the opposite side of me that I have 1st chance at also, but that owner wants $7000-$8000/acre. part of that has main road frontage, I just can swing myself to go for that, I almost did last summer, but $210,000 scared me off.
 
Buy it if you can. Three years ago I was one bid short of buying the quarter across the fence and now it's worth twice as much as what I stopped at.

The one glitch that might come along is a skittish lender. The bank examiners are looking at all banks closer, even ag banks, so they are tending to be a little more conservative. Jim
 
You're really considering dropping $80K on a max of 12 tillable acres?

Don't ya think yer neighbor is workin' ya just a little? :>)

Allan
 
Buy it on a Deed OF trust,Not a land contract. A land contract ,if you miss one payment he can take away from you! On a Deed Of Trust it could take him maybe a year to take it away from you and in that time you could make up any missed payments...BTDT Jim in N M
 
A few years ago I would have said walk away from any $4000/acre farm ground. There was 80 acres of pasture land that brought that just north of me at auction a few weeks ago. There is 1064 acres for sale right now that I can see from the house. 1004 tillable, 100,000 bu bins, $6,000,000 is asking price.

$4,000 acre, right next to you don't sound so bad. Don't know your situation, but if you raise birds you don't need any new neighbors. Alot of the people around here have had new people move close, after the chicken houses went up, and all they do is **** and moan about the smell.

Good luck.

Dave
 
See if you can get a forester or somebody in to give you an idea of what the oak is worth. Around here 8 acres of mainly oak woods, if it was in good condition, would make a pretty good down payment on that $80,000 when you take a harvest off it next winter or next year. If it's been logged recently or abused, the value would go down a lot.
 
Forgot to mention, about 3 years ago we almost bought an 80 acre farm that was about half hardwood bush, half workable. If the bush had been decent, we could have taken a harvest off it and paid for the farm completely from the proceeds. It was no good whatsoever and the farm wasn't worth it without the wood.

I think too often we only look at the workland.
 
Well, sir, with all due respect I am a doctor and I am in the same situation as everyone else. My specialty is dentistry. It costs me a lot to provide my patients with competent, sterile service. Right now my overhead is at least 70%. I also spent nine years getting an education, piling up debt as my parents could not afford to put me through school. During those nine years you were likely making an income. I have patients that cannot pay me but need emergency services anyway. I'm on call 24/7. I practice in a rural community, not a big city. I am also trying to teach my four children about appreciating their roots by restoring my grandparents tractors, 35 chev grain truck, 29 model a ford, and even furniture like my grandmother's Hoosier hutches. We do a lot of the work ourselves. Now, what were you saying about doctors?
 
Not to butt in, but the way I read the post from Dave was he is meaning that his wife has a secure job working for a doctor's office. I don't think Dave meant any disrespect towards doctors at all.
 
Money costs nothing to borrow?Explain who makes the interest payments.Old man interest is working against you 24/7 365 days a year.Mark
 
Considered that. That woodland, and mine, have never, ever been harvested for lumber other than dead trees for fire wood. There are Oaks out there that must be 4" in diameter. I would never clear cut it, but a prescribed harvest wont be out of the question.
 
M Nut is right, no disrespect or shot at any medical careers out there. Wife works at a local specialty clinic and my point was geared at the "income security" line of thought.
 
You know, some things you want, as opposed to need. Sounds like you want this land a great deal. It's OK sometimes to buy things you want (like a tractor or 2). I'd just ask myself, what's the worst thing that could happen if I can't make the payments for whatever reason, or run into future financial trouble?
 
I would buy it. Around here that 20 acres would be on the market for about $230,000. Course with the real estate bubble burst(ing) land around here is started to slowly come back down to reasonable prices.

I had chance to buy 80 acres on the backside of my place for $2 grand an acre. Like a dummy i didnt. Well a developer bought it and planted 150 houses on it.
 
The dude is probably hard up for cash, see if you can bargain with him... Because if he did put it on the market it probably wouldn't sell very quick... Too much supply, not enough demand.
 
One thing to keep in mind, if you don't buy it now you most likely will never get a chance at it again. Buy it or you will regret it the rest of your life!
 
well with all due respect sir, i am a rancher, and my specialty is raising bison. It cost me a lot to provide my clients[customers] with clean healthy meat.
Right now my overhead is at least 95%.I spend a lifetime on education,during wich time i was working off the farm to make a living and still do,as does the wife,and piled up debt as well,as my parents where to poor to even pay attention.I have sold animals or hay for whom i never got paid, But NEVER had a dentist that pulled a tooth for free or after hours or in weekends.And during office hours they charged more for pulling a tooth than i could make in 2 days.
I am also on call 24/7 365.
I also would like to restore old tractors and such,but neither have the money or the time to persue this.I do ALL of the work myself. And we raised 4 children to adulthood.
I have to use machinery that is 30+ yrs old.

So,IMO you'r not in the same situation as every one else. You are most likely well paid,as for most farmers are more or less subsidizing the economy.
 
Dave ---- looks to me you hate neighbors --- and that can cost you in more ways then one --- from my view -- poor judgments cost --- and so does wanting things you don't need or can do with out - Debt's are poor judgments -- some day you will remember what I talking about....
Good Luck...
 
20 acres for 80,000 bought 20 on my south line for 18000.00 80 grand seems really steep.. just my thoughts but if you can swing it buy it
 
That's high priced compared to KS land.

Buy it before somebody like Allan, Gordo, or Glennster buy it and move in next door. Ther'll go your neighborhood! They will be driving noisy farm machinery all day and all night kicking up dust.

Get some city slicker to move in there and he will have the authorities on your rear all the time complaining about noise, dust, smell, chemicals, animals, etc. Then when you get mad about their chronic complaining and complain back, someone will say "well you had a chance to buy it and didn't".
 
I bought a 40 next to me 2 years ago for about the same reasoning you have. In my case it is too wet (30 tillable, 10 is grassy-wet) and potential buyers were asking me about running tile into my already under-sized tile line..... I already lose 5 acres of crop when it rains too much, any more water going to that tile & I would lose more. So was 'cheap' for me to buy the land.

I think. :)

Just baled the grass, was taller than my tractor hood, so I get something from the waste land....

--->Paul
 
Hunting land is selling for $1500 an acre around here - that is to wet, too hilly, or scrubby trees that you can't farm/ hay do anything with but walk through.

Really good ag land (his sounds a little dry) starts at $4600 an acre & goes up from there.

If it's possible to put houses on it or near a town with blacktop access, even in this housing market $8000/a won't get it.

So, the price isn't too far out of line for local conditions.

--->Paul
 
If you want it buy it. its only money.I am a dairy farmer in debt about as far as you can get,work 16 hour days 7 days a week and my hired help net more money in a year then I do (thats sad)but if I really want or need something you can bet I will figure out a way to pay for it.
 
> Buy land! they're not making any more of it, and
> there will be a shortage someday!

The same can be said for oil.
 
Well, I guess we all have our cross to bear. I would pull your tooth for nothing and have for many, many, folks.
 
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