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Depends on the land and property tax assessment. I’ve been mulling buying some land since interest rates are so low now...but it’s hard to see the value of ret
by binarymax 6y ago
Depends on the land and property tax assessment. I’ve been mulling buying some land since interest rates are so low now...but it’s hard to see the value of return when you factor in mortgage fees and property taxes.
- bluGill 6y agoYou have to run the numbers over 30 years. Over 30 years the rent will increase (as will taxes), but the payments stay the same. Then the payments go to zero and you get a big payoff. If you can't commit to at least 30 years it is probably bad (you can change your mind as conditions change, but 30 years should be the plan) . You want to share-crop for part of the price. It gives you incentive to ensure the farmer is farming the land as opposed to mining it for the nutrients before leaving you with dead land. Because you share some of the risk (and will have to cover it in bad years - there will be bad 5 year stretches so make sure you can budget for this!) you can get a greater return long term.