cancel
Showing results for 
Search instead for 
Did you mean: 
Senior Advisor

Re: Question of the day

Actually, I don't look at real estate as speculation but as an investment.  My shallow logic tells me that i will buy a farm and keep it whether it is worth $10k per acre or $5k. Speculation would indicate that you intend to sell it. I intend to keep it. I know that i will pay for it or my heirs will and more acres will be added to the pie.

 

In other words I am focused on the long term income producrion from those acres for me my kids and grandkids. Admittedly my children may not share my point of view and convert it all to cash. But then that is their decision, but we are offering out heirs the opportunity of ownng a land base. What they do with it is up to them.

0 Kudos
Honored Advisor

Re: Question of the day

You gotta treat yourself better.  No matter what pocket you take the funds out of you owe yourself interest as well as any other lender.

 

I am not sure land appreciation is a fact we can always relly on.  The successful farmers of the 1920's for example.

0 Kudos
Senior Advisor

Re: Question of the day

I don't need interest on my investment. Short term gains aren't my objective. The objective is more land but that is likely at an end. I am willing to sacrifice short term income to acheive that goal. It would be different if we needed the short term income to survive, but we are thriving pretty well without it.

 

BTW I understand your reasoning and logic, but I have to justify my logic for buying the land and that logic is buy land and pay for it. Use the returns from that land to help buy the next and the next. It's worked pretty well so far but I suspect i would fail economics 101.

 

 

0 Kudos
Senior Advisor

Re: Question of the day

Don't cut yourself short Kraft, buying and paying for something without going under might just be a chapter of economics 100.5.
0 Kudos