Land values in your area?

[the big wheel]

For what it's worth I did something new to me this past year. I m in a rent to own deal where I pay above normal rent but below owning the land price. That way the owner gets more cash and is in a better position tax wise down the road. I ll see how it works out in the end. But there are different ways of doing land transfers. I have a condition. Where if the owner want s to completely sell then we deduct the additional amounts I paid in excess from the price asked later. If that makes sense.

[farmaholic]

For what it's worth I did something new to me this past year. I m in a rent to own deal where I pay above normal rent but below owning the land price. That way the owner gets more cash and is in a better position tax wise down the road. I ll see how it works out in the end. But there are different ways of doing land transfers. I have a condition. Where if the owner want s to completely sell then we deduct the additional amounts I paid in excess from the price asked later. If that makes sense.

I'm assuming you have first right of refusal when it sells? What's your protection from being "bid up" past a reasonable price? Is it more of a Purchase Agreement than a Rental Agreement?

[sumdumguy]

I thought Big Wheels just get the secretary to cut the cheque, no problem.

[the big wheel]

This situation benefits both parties. Yes I could cut the cheque but why not have my money available to do other things at the same time benefit tax wise the owner? Honestly only time will tell if this is correct way to go.

Yes I have first refusal to purchase I have an interest declared on the title as I have money invested in the land. Should I not want to purchase I get money back when land sold. Market price determined by independent appraisal however we have an agreed maximum and agreed minimum price.

[AC man]

Farma, I have no kids due to being married later in life. I do have nieces and nephews,also step kids which are all in cities. I have nobody interested in taking over. If I don’t sell it will be rented out. We have all the kids in our wills for inheriting the land. I was hoping there would be a family member to take over and keep it in the family.

[AC man]

I have cousins with land at 5000/ac and wonder if any actually sells? How do you make that pencil out? My pencil can’t get sharp enough for those values.

[fjlip]

Farma, I have no kids due to being married later in life. I do have nieces and nephews,also step kids which are all in cities. I have nobody interested in taking over. If I don’t sell it will be rented out. We have all the kids in our wills for inheriting the land. I was hoping there would be a family member to take over and keep it in the family.

We have the choice of "giving while alive" and in an estate.
If we give, we see them benefit/enjoy fruits of our lives, in estate, we will never know.

[blackpowder]

When wrapping your head around 5k land put down the pencil. You want it or no. If yes, you can afford it or no. Simple. And believe me the money does change hands. The price of grain (at least for now) has fkall to do with it.
The supply of cash/equity still greater than supply of land for some. Hutts seldom bankrupt.
I know of half the bigger non hutt operators here would not be killed by 8% interest. Yes, others would.
How many of us here couldnt believe 2000 ac land? How many wish theyda bought some?
It will change but I'm done predicting when. I hope it goes to 10k.
To that end dont be afraid to fire your accountant. My parents affairs just dumb.

[AC man]

I know you can look at the price of land and compare it to the price of equipment,which is the better investment. The land will always be there whereas the iron will be parked in 10 years if it even makes it that long. The only problem is that you need the equipment. In reply to a previous thread,we are considering giving the kids some land.

[bgmb]

We have the choice of "giving while alive" and in an estate.
If we give, we see them benefit/enjoy fruits of our lives, in estate, we will never know.

More often than not you will get to see it pissed away. Seen lots of times where a family member gets a deal to but land then they turn around and sell it for market price shortly after.

Also sometimes the older generation will hold on forever living on next to nothing so they can Will the land to their kids and kids have land sold within months of getting it.

[Rareearth]

Start a trust, land can be rented out and income, dividend, inheritance etc can be yours and your families for ever. Borrow against half of the equity, and have trust management (paid family members voted in) invest in other business ventures( stock markets, land, new Ag emerging technologies etc)

It’s you legacy, parents, grandparents and all that follow. Pay for 4 year university education (for those that want to better themselves) or other such investments in family.

[farmaholic]

Start a trust, land can be rented out and income, dividend, inheritance etc can be yours and your families for ever. Borrow against half of the equity, and have trust management (paid family members voted in) invest in other business ventures( stock markets, land, new Ag emerging technologies etc)

It’s you legacy, parents, grandparents and all that follow. Pay for 4 year university education (for those that want to better themselves) or other such investments in family.

I remember fjlip talking about trusts being restricting or hand tying..... and like some others mentioned, does it really matter when you're dead?

How do you structure the trust? All siblings, then their kids when the siblings die? Too many fingers in the pie! I heard of mineral trusts where the "pieces" got a little small. And fighting!

ps: AC man....good luck with your decision. It's yours to do what you want with.

BP, probably the best thing I've ever heard regarding justifying buying pricey land...."put down the pencil" lol.