Buying a farm/ranch

[Captain39]

Sorry about the 7.5%, I currently have one that is 5.5%.

[Burnadell]

Ranchland is a great investment unfortunately you have to sell it to make your money. Very few ranches can sustain the note or cover the payment especially if it is a deer only place.

True dat!

I certainly did not mean to bash the purchase of land, as an investment or for pleasure...they can be excellent investments; I just believe we should not make brash statements without justification. One generally cannot buy land at today's prices and make it pay for itself...the numbers simply do not work. Those who can pay 1/2 million to multiple millions for ranches made their money elsewhere...and not on a salary; perhaps the old fashion way by inheritance. Many make money in the $tock market and then diversify their profits into land.

Our lease (2500 ac ranch) is owned by three sisters who inherited it from their father...surrounded on 3 sides by two forks of the Brazos that come together to form the main Brazos River. It's for sale for ~$1600/ac...overpriced. They lease it to a rancher who plants wheat and fattens cattle. He says it is only worth $400/ac for ag purposes. One of the sisters works at the convenience store in town to pay her bills.

QB, I agree.

[gekko man]

Just do it...you will never buy high and sell low if you buy it for the right reasons and you can afford it!!!

It will all be done on your terms!!!

[gekko man]

Here is a link to some properties near my place.

http://www.ranchrealtypro.com/property_listings.cfm?homeid=5

I paid $2850 and acre about 3 years ago. Do the math and you will see how crazy it is out there right now.

If you are going to buy, buy smart and the piece of land you like. Don not buy just to buy. You have to look at everyday and someday you may wnat to sell it.

[Kdog]

In my travels I find myself lusting over various pieces of property in the beautiful hill country of Texas. I'm definitely not there yet, but when I grow up I want to acquire a decent sized place to have for my own, maybe 200 to 500 acres or so. I'm just blown away by land prices these days, however. Is it just me or are prices getting a little crazy? What do we do? Any success stories out there? Maybe I can live vicariously through others. This has been a life-long dream of mine.

Don't worry, I hear we are headed for a recesion. Should make the prices come down.

[Blood Trail]

If your a veteran, there is plenty of low intrest loans you can get. The VA loan won't allow you to buy land but I bet you can purchase a home with land on it. My wife and I bought our first home at the age of 27 and 28 with no down payment.

[quarterback]

What do y'all know about Brown County? Prices are a little more reasonable there and I think it's still a pretty good deer hunting area. Some parts of Mills County are relatively o.k. price-wise too. I like Erath too, but it seems a little on the high side. What say you?

[cj7zrcool]

For the land agent who said houses are terrible investments, go to any bookstore and look for Robert Kiyosaki, Gary Keller, or Donald Trump. OR on the market read a book a Warren Buffett, or David Cramer. All billionaires!!The average guys who buys a 100k property spend a $1000 a month on his note for 30 years. Put that in even a fixed CD at 7.5% and you will be a millionaire when you pay that land off. Remeber buy low and sell high.

Where do you buy a CD that's paying 7.5%?


EDIT: Never mind, I didn't read down the list far enough.

[Bigdeer33]

Captain, i didnt mean to insult you or any other agents, i should of clearified what i said and said the house market in our local area is junk. you wouldnt believe the house that sit on the market, 4yr old house 2200sqft bt 160k-180k nad they have been sitting on the market for a year. again sorry if i have insulted you and other agents, its just that there are those agents out there that give us agents that are workign hard and tell you how it is bad wraps. just like there are hunters out there giving us quailty hunters bad wraps.

[cj7zrcool]

Here is a link to some properties near my place.

http://www.ranchrealtypro.com/property_listings.cfm?homeid=5

I paid $2850 and acre about 3 years ago. Do the math and you will see how crazy it is out there right now.

If you are going to buy, buy smart and the piece of land you like. Don not buy just to buy. You have to look at everyday and someday you may want to sell it.

Ni kidding! My wife and I have been looking for 15-40 acres to build our home on in Palo Pinto county for the last year or so. We have seen property priced anywhere from $3K-$18K and acre! Of course the lower priced properties all have issues of some sort. Creeks bisecting and cutting off access, flood plains, easements, oil/gas wells in bad locations, etc. Looks like we may have to down size our hopes since we were trying to stay around $150K.

[JeffJ]

BrandonA sent this to me to post:

http://recenter.tamu.edu/data/agp/rlt16.htm

[Captain39]

I am not sure where you live BW ranch, real estate varies across Texas. I in complete aggreement with you about alot of bad agents. I tell my friends I would never do it full time, because I can not stand most of the arrogant agents I have to deal with. I thank god for my job with HFD. But I beleive any house bought at the right price can make money. like I said if anyone out there will sell me there house for what they bought it for in 1982, I am your buyer. And yes I checked my CD rates they are at 5.5%. and they are through my credit union.

[BrandonA]

BrandonA sent this to me to post:

http://recenter.tamu.edu/data/agp/rlt16.htm

Thanks Jeff.

If you look at the "real" price per acerage, since 1966 the average annual return is 5.39%. The "real" number adjsut the $$$ for inflation and it is the true measure.

[Captain39]

Read the data close, that is for one area of the hill country, there are 33 different areas. I meant statewide 3.5%.

[JeffJ]

Read the data close, that is for one area of the hill country, there are 33 different areas. I meant statewide 3.5%.

And that area is in one of the hottest areas around...I clicked on a bunch of the areas and most were between 1-5% compunded since 1966.