Land and house prices

[wmoebis]

Just reading this topic and I was just thinking. If the price of grain was up and mach and land was down how much land would everyone be farming.

Is everyone getting bigger because they have to or other reasons. Would they sell if there was more money in farming? Or would they want to get bigger because there was more money in it?

[fjlip]

That will never happen. Soon as the gross income increases land and rent goes up. Few buyers do the math on short term profit. We are all long term optimists.

[Hopperbin]

Interesting, whenever I bought land in the past I penciled in not making a profit on it for a few years. If not taking into account paying off the loan. When buying a house one must make a profit to buy the house. In 30 years with not much maintenance that house will be severely depreciated compared to building a new one. The land if eventually paid for will provide income for generations until someone borrows back against it and must sell it to pay off debt. I know people that in my parents age had 3 quarters of land rented out while they had good paying jobs. They are Now have extremely wealthy next eggs. That could probably have no problem buying out the 20 quarters I farm and I still have debt.