One less decision to make...

[farmaholic]

It's been made for me, the half section beside us had the option to purchase exercised! "INVESTOR"

[farming101]

Cheap money saga continues. Wonder what rent will be?

[Guest]

It's been made for me, the half section beside us had the option to purchase exercised! "INVESTOR"

You might be lucky. Cant see how the wheels cant fall off this thing

[farmaholic]

Assuming it sold close to $300K(like the other 5 quarters did). At $70/ac on 150 acres... that's 3.5% ROI. I think the tenant was paying a bit over $60/ac to the previous owner.

Edit.....the other stuff was closer to $320k per quarter (just under $2000/ac)....so ROI of about 3.25% at $70/ac.

[the big wheel]

I thought I got it cheap? No isn't everyone moving to saskatxhewan pretty soon no room for houses land will skyrocket won't it?
Lending institution said bid whatever.

[parsley]

Cheap money saga continues. Wonder what rent will be?

http://www.businessinsider.com/jim-rogers-worst-crash-lifetime-coming-2017-6

[tweety]

Assuming it sold close to $300K(like the other 5 quarters did). At $70/ac on 150 acres... that's 3.5% ROI. I think the tenant was paying a bit over $60/ac to the previous owner.

Edit.....the other stuff was closer to $320k per quarter (just under $2000/ac)....so ROI of about 3.25% at $70/ac.

That's not the way the company sees ROI. They see an additional 300k when sold 15 years from now. 200k when sold 10 years from now, 100k 5 years from now.

You can talk bubble, its going down, but that is all it is, an opinion that is most probably incorrect. Land will continue to rise in value. 7% per year, best long term stable investment ever.

Its not going down.

[SASKFARMER3]

Ok tweety ill bite your theory never going down.

housing crash in USA a home that sold for 300000 was worth 75000.

Land in 1981 in saskatchewan that sold all over for 160000 or more 5 years later bought at 57000.

land in Kansas at peak land today.

Yes over priced property can go to the moon but as every thing it has to make money. A idiot renter can't continue to pay 100 a acre rent if he grows no crop or the gov in some other country comes up with some useless tariff etc.

Smart investors know whats going on, Dumb investors that attend meetings that the world will run out of food maybe get one good score but usually they fail on second.

I said good bye to lots of neighbours in the 80s that were real good farmers that high interest rates took out. then the USA going with pay the farmer in USA and canada said your on your own.

Land has value but not much more than what you can grow on it. Big investors go down and go down hard when the ship starts sinking.

[biglentil]

http://www.businessinsider.com/jim-rogers-worst-crash-lifetime-coming-2017-6

I agree with Jim Rogers. Webbot it predicting double digit interest rates by the end of the year. Things move very fast these days.

[farmaholic]

Tweety...I agree with your statement long term but you "could" be wrong short term. I can tell you from experience land can and does go down in value. It happened here in the eighties...to one of the five quarters this investor bought in the first part of the deal. The sellers bought it for $80k and they would have only got $55k for many many years if they tried to sell it. Same for me, paid $64K and wouldn't have got my money back for years. But we never sold so no loss realized but had we wanted to or "had" to.... so yes, land does go down. Those were the years land in areas laid idle (not so much here), or was rented for cheap or only enough for the landlord to pay the taxes.

My bet is on a modest or small correction and in my opinion, I think the huge and quick appreciation we seen in the last short while is over and will see the traditional appreciation after the correction. These guys better be thinking loooooong term!

[SASKFARMER3]

Land will correct and it can happen real fast.

A Renter can't pay 100 a acre rent when your bank tells you your done after two bad years or two years of below average returns or drop in lentil prices etc.

It happens fast. Smart people get out sit on sidelines or watch the train wreck that will happen.

Now do i believe land will drop to the 75000 hell no. But a 400000 quarter will drop to 250000 this time round, study history of canada and land values each time we are told the world needs our food we try to all double production then when it crashes after a war, interest rates, subsidies drought or floods.

History proves it over and over and over.

A Correction is coming seen this in 1981, " you have to buy they aren't making any more land" Purchased the same farm i looked at million dollar price tag in 1981 for 315,000 10 years later. It is now worth 1.8 probably.

Oh its not for sale.

Just saying for every investor who thinks its all up and up their are a bunch who think its peaking and going to fall. Time will tell but I'm betting we passed the peak or approached the top of the hill when Redland sold out.

[sumdumguy]

That happened to us too. We bought a 1/2 in 1980 for $825/acre. We could have and did buy land right next to us on the other side for $375/acre in 1989. Never say 'Wo'' in a muck hole. It was tough times as we were the dryest area in Saskatchewan for three years during the eighties.

[fjlip]

That's not the way the company sees ROI. They see an additional 300k when sold 15 years from now. 200k when sold 10 years from now, 100k 5 years from now.

You can talk bubble, its going down, but that is all it is, an opinion that is most probably incorrect. Land will continue to rise in value. 7% per year, best long term stable investment ever.

Its not going down.

I hope you are right, lots of us OLD guys will be getting out of this GAME. Here young guns nearly fighting over every rent/sale.

[farmaholic]

[QUOTE=SASKFARMER3;347532]

It happens fast. Smart people get out sit on sidelines or watch the train wreck that will happen.


So I would have been stoopid to take it at the current prices if I had the opportunity? I can tell you this much, my head would have said yes, buy it, but my gut would have been arguing no. I probably would have tried to buy it because land half a mile from your yard doesn't come up for sale everyday. I/we may never get another chance at it in my lifetime. Unless I offer the guy more(another reason to have my head examined). Would have hoped to pay it off quick and save money on interest costs to reduce the acquisition cost.

[tweety]

Maybe more specific, over the long term it will trend upward. An investors dream.