One less decision to make...

[farmaholic]

......what a guy, that wiseguy. lol

[newguy]

[QUOTE=farmaholic;347545]newguy, define cheap. The bar for land prices has been raised dramatically here so even a small correction won't make land "cheap".

But keep That is right.But I seen 90 thousand quarters go down to 40 back when things went bad.Just saying that will not happen in that kind of extreme.

Funny.....I've never regretted buying land.....I've sure regretted not buying though.

how true for everyone

[sk_wheatking]

Funny.....I've never regretted buying land.....I've sure regretted not buying though.

[Generation 5]

still better than investing in a brand new 4wd or air seeder or combine. bought a half section across the road with yard site and house for less than new john deer 4wd. have no use for new ****ing iron or the big payments on it but buying land has never been a regret on our farm.

[the big wheel]

Wiseguy is spot on correct. The numbers don't add up to purchase land at these prices. But they will get higher because of the outside money from countries short on land and other resources wanting the land.
Farming is actually in complete disarray governments aren't owned by farmers they are owned by you know who. Therefore they want the land to not belong to family farms.

[Horse]

In this area I would say land never dropped it just didn't sell for a while other than the odd 1/4 then back to selling and at higher prices.

[farmaholic]

newguy, define cheap. The bar for land prices has been raised dramatically here so even a small correction won't make land "cheap".

But keep some powder dry!

[newguy]

land does have corrections up and down.And for those who have been saying a correction down for the last 5 years I am sure eventually you will get it right.But in the past when things hit the fan in farming there was only very local people in the market to buy it.So very few had the ability to buy.This is not true any more. much more money around that will hold up a total crash like we had in the 80s.So if your waiting to gobble up cheap land that you pay for in one crop it ain't going to happen.As long as the population in sask continues to grow land is a very good long term investment.People bring money... money brings people.

[tweety]

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

[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.

[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.

[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.

[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.

[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!