In many threads there is discussion of homesteading on very expensive land. Figures of many thousands of dollars per acre, or properties costing hundreds of thousands of dollars are mentioned. In one recent example $100,000 per acre for five acres was discussed. There must be something I do not understand -- very sincerely. Will someone set me straight? I cannot comprehend land priced at $100,000 per acre X 5 acres being considered for homesteading or farming -- or even land for $10,000 per acre. Whether land is purchased outright or financed there is an interest consideration -- either interest paid or interest lost. If one pays cash the money is locked up in land and cannot draw interest. If the land is mortgaged the interest will accrue. Either way it is money gone. At five percent (paid or lost) on $500,000 that would amount to $25,000 per year â which is the base cost of living on the expensive land ($2000 per month). Also, taxes are usually somewhat proportional to land value, and are typically too high to out-of-sight. Buildings are often not mentioned, so their cost must evidently be additional. All other start up costs of developing a homestead must come from somewhere. If one purchased land for a fraction of the amounts mentioned (as can be done in many areas) and kept their cash, they could create a wonderful homesteading / semi-self-sufficient lifestyle with a half million dollars and have enough reserves to live on for many years little or no outside income. If the purpose of staying in a high priced area is to keep a high paying job, the job simply pays for an expensive place to live â and the job probably at least discourages doing much homesteading or farming. What happens AJ â after job? Iâm shaking my head over this quandary. At $1,000 per acre most land would do well to provide a break-even (unless cropped intensively for a specialty market). At a hundred times that land price, it doesnât seem to compute. Again, I am not criticizing anyone or being disrespectful or sarcastic. I simply do not understand how high-priced land can be consistent with homesteading â and would appreciate clarifying comments.