Land Prices I think have Peaked!

[SASKFARMER3]

OK every one knows I am not going to purchase any land at these outrageous prices unless its on my door step or is the missing quarter of a section or two sections.
Chinese Investors have been going strong all winter. Lady from Ontario.
Slow payer but eventually the farmer gets his money. She keeps the land and rents it back. Seems she has been busy this winter with 11 to 15 quarters north of us.
She does not buy and resell Before the money arrives.
Now why am I saying Land has finally peaked.
Well Back in 1980 a neighbour told me he just bought 5 quarters for Million dollars. Said they aren't making any more and its a awesome deal.
He was broke after three years. And has left the area province and earth.
Met in 1980 with a real-estate agent who told us the same thing bid bid bid or you will loose out you know their not making any more.
We own all we looked at but it took us 6 more years to acquire it.
Now why am I saying it has Peaked.
Fast forward to 2013. Same BS investors will buy (German before Chinese Now). Real-Estate is doing the same thing scamming farmers and taking their 5% or more for jack shit. You know their not making any more.
But the real sign is Locals that lets just say in 1980 were gung ho and purchased then down sized are now buying like their is no tomorrow.
$360,000. per quarter no questions asked Mill for three.
So prices are 360 260 160.
One other note the Big dogs with Very deep pockets are not even looking. Big dogs that own private companies with Billions in sales.
Once the house bubble bursts watch what will happen to farm land.

[bucket]

Its still ok to buy that quarter that fits in though, right? I just did that and I am really rethinking if it was that important.

I do know I wouldn't have got another shot at it - forever.

Any thoughts, oh great one?

BTW, I have been approached about selling some land for a retail to relocate to. What do you sell a 20 acre plot for?

Need some help on this one.

[SASKFARMER3]

Retail site. Phone Remax chat about what a retail site goes for. 20 acres that will be gone for ever and could be contaminated later if business is gone.
I just think history repeats it self and housing is insane and will drop you cant pay 750,000.00 for a house and just got your first job.
Also Why are Billionaire business men that farm are not buying. Their been approached on a daily basis but to date none have bought.
I really believe we will see not 20000 or 40000 but a pull back to 50000 a quarter to 80000 100000. Or basically what a farmer can make a living at farming.
All the big Corp farms Broad ass and One World ETC are down sizing this spring or getting into livestock cant make it grain farming wonder why?

[SASKFARMER3]

Also ask your self if paying 300000 for a single quarter but it makes you have a whole section. And you know you wont be able to ever buy it again. Will 300000 brake your farm probably not.
But purchasing 8 for 2.4 mill Might just sink you some day. Seen it before. Also ask your father or grandfather if this has happened before. They will tell you yes over and over since the land was broke.

[Burbert]

NOPE NOT YET, cousin theys still buildin
Walmarts, Costcos, Hortins, and Future
Shops. Comedian prices still got a long,
long, long way ta go up ta catchupta
Merkican fram prices. Now wit our
computin machines the catsouttathe bag
cousin they ain't making more fram land
thats fer sure, eh! fharperenritz

[sumdumguy]

We can barely grow 1 crop a year here.

[SASKFARMER3]

I agree with Sumdumguy In 60 days from today the days start getting shorter. That's less than two months away. We will never be the same value as AMERICAN farms.

[newguy]

Keep predicting land has peaked every two
weeks eventually someday you will be
right..

[Braveheart]

Land prices will never peak as long as there are
Germans using their mothers' money.

[food4u]

Better rephrase that to Europeans( in our
area anyway).

[phoenix64]

Sf3 I agree, shades of 1980 all over again, gold
and many other commodities had peaked, grains
and real estate started their slow descent.....only
thing missing is a hike in interest rates which
seems inevitable considering the resurgence in
the us economy.

[SASKFARMER3]

New guy study history! Their is a reason. its
simple, so individuals don't repeat the same
mistakes again.
30s 50s 70s late today.

[newguy]

I never said there would never be a
peak.Predicted last year land prices had
room to move up a bit yet. Seems they
had more room than I thought. 24700 for
130 acres of bush and 30 acres broke
.Ritchie auction Guy Alberta. Buying
land may involve a differant risk factor
for differant people. I bought my land
before and after the 80s high prices.
Sask land will never drop in price as it
did years ago because our population is
now growing instead of decreasing like
it was back then.People bring money
Money brings people.

[farmaholic]

I would hate to have bought a section
for a million dollars in this
environment. I've been preaching
correction too. How far would it fall,
depends. But I am happy the bar has
been set alot higher. It has been only
the last couple of years it went nuts
here--about 2.5 to 3 times the new
assessment, before then it was
reasonable. I've also said before, it
isn't farmers(generally) that have drove
up the prices to the levels we see today
but "investors" with pockets full of
cash looking somewhere to park it, WILL
THEY BE ABLE TO UNLOAD IT IN A FALLING
MARKET? Good luck finding a SYMPATHETIC
buyer(I am not mean spirited by nature).
And no, I don't think there is anything
wrong with buying the missing piece of
the puzzle for more than market price.

Let's hope we get in the fields in
reasonable time and all goes well, be
safe as time will be of the essence, we
don't need anymore "statistics".

[grefer]

I can only speak for my area as each area is quite
different as to what is driving land prices. It is a
totally different ball game today than in the
seventies here. With the change in land
ownership rules in Saskatchewan it has brought
alot of new money to the table that was not
available in the seventies. This money comes
from oil money as well as others that think land is
a good place to park some cash with the good
commodity prices we have seen since they
started mandating the use of ethanol in gasoline. I
know land prices will soften when interest rates
rise for a number of reasons but it will not drop to
levels we had even ten years ago. Of course if the
whole world economy collapses all bets are off.
JMO.