One less decision to make...

[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.

[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.

[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!

[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.

[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.

[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.