Property prices

Discussion in 'Homesteading Questions' started by pickapeppa, Nov 27, 2005.

  1. pickapeppa

    pickapeppa Well-Known Member

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    I was hoping to having a little fun on-line today looking at acreage at various locations around the good ole' US of A. Is it me, or is the price of land ridiculous? Maybe I'm cheap, but I didn't see anything for under $1500/acre and that's if you buy a 100+ tract or have some crummy feature like 2000 ft of railroad frontage with no legal access. C'mon. What gives people? I guess our purchase will have to wait until after all the baby boomers retire to their pristine parcels, bankrupt the country and have to forfeit their homesteads to the government in leiu of medical bills. Then I'll be to old to do anything with property anyhow. I really hate being the generation behind the boomers. I guess I should have just minded my own business and stayed off the internet today. *pouting*
     
  2. Phalynx

    Phalynx Well-Known Member

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    Well, the problem is, they aren't making any more of it. Land will only go up, not down. We are trying to find land at a reasonable price as well. We are having to adjust our definition of reasonable now.
     

  3. shawnee

    shawnee Well-Known Member

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    First of the year we sold 80 acres for my mother for $425 an acre. This is in north central Kansas south of Woodston, Ks. Our land is a little bit more central and had house and morton building and established orchard. Farmer we bought from said if we wanted to buy some more next year it goes for around 775-800 an acre. This is crop land price; Pasture land goes for less. Just a thought - I know how everyone has "issues" with Kansas, but winters are mild - usually not all that much snow and it doesn't stick around, central and western Ks. not a lot of trees but enough to burn for firewood. Most towns have a dump with firewood available; Great Bend has an excellent site for brush, trees, free compost and wood chips. When we lived there we got firewood there for 9 years. Cost of living is low, not snakey like Tennesee, Ms., Ark., etc. Only snake I've seen smaller than a pencil near the road at mailbox. Turkeys, deer, quail, deer, pheasant, deer and lakes with fish well within anyones driving. Oh, did I mention there were deer here?
     
  4. BearCreekFarm

    BearCreekFarm Well-Known Member

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    If you think you want land, buy it now!!!! Phalynx is right- they're not making it any more. Land which I bought 13-14 years ago for $1050/acre is now selling for $7-8,000/acre, and land in the same area with road frontage which mine does not have, sells for $12-14,000/acre. Another area where I bought land 10 years ago for around $10k/acre, land is now selling for $50-80,000/acre. It's absolutely crazy and makes me happy that after our upcoming move, hopefully we will never again be in a position where we want to buy land, because I don't care how nice it is, it ain't worth that much $$$ to me.
     
  5. edcopp

    edcopp Well-Known Member

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    Don't blame another generation for your problem. It is just not our fault that you did not save your money and pay cash. It is not our fault that you can't find cheap land without getting out of your chair. Whine, whine. I suppose you demand a paved road, near a ramp to an interstste so you can commute to your job too. Suck it up, it is your own fault.

    Some of us older folks are not going to just die off real soon either. Some of us have poverty experience, and have lived a lifetime of bargain hunting, and thrift. A lot of us gave up a tremendous amount so the next younger generation could live in style and luxury, while whining and moaning. :(
     
  6. Mike in Ohio

    Mike in Ohio Well-Known Member

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    pickapeppa,

    Perhaps your expectations are unrealistic. To blame your inability to purchase land on others is simply silly. Most of the people I know who own property scrimped and saved to make it happen. Some paid cash and some took on debt.

    Feel free to wait until boomers die off....I doubt land will be any more affordable for you.

    As usual, just my 2 cents.

    Mike
     
  7. Alice In TX/MO

    Alice In TX/MO More dharma, less drama. Supporter

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    Pickapeppa said, "I guess our purchase will have to wait until after all the baby boomers retire to their pristine parcels, bankrupt the country and have to forfeit their homesteads to the government in leiu of medical bills."


    Rose says,
    You watch too much television. Don't believe everything you see on the boob tube. My place is paid for, my bills are paid in full every month, and I have health insurance. Thank you very much.

    Get off your fanny and bargain hunt like we did.
     
  8. jassytoo

    jassytoo Well-Known Member Supporter

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    Well said Rose. :clap:
     
  9. mtman

    mtman Well-Known Member

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    the only money we owe is on the truck we just bought dw retired 7 years ago last month was the first retirment check she collected for 7 years her check went to land payments every bitt of it how would make you feel now she is done working forever and we rebuilt our house ourself it wasnt easy like i allways said .it all depends how bad you want it
    Jim
     
  10. pickapeppa

    pickapeppa Well-Known Member

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    Ten years more of saving and investing with a good paying job would have put a good piece of property within our reach. If you were born ten years later and trying to surf behind the wave, you'd know why my viewpoint is what it is.

    It just seems like so many are asking unreasonable prices for their land and getting it. By the time our debts are paid off, it doesn't look like land will be a worthwhile investment. In about 30 years from now, there will be a lot of property for sale with fewer wealthy buyers competing for it.

    BTW, we don't live in style and never have. Scrimping and saving and frugal shopping is our lifestyle and always has been. It will pay off eventually, but not as big as it has for the boomers.
     
  11. boxwoods

    boxwoods Well-Known Member

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    pickapeppa! You are forgetting the hordes of people coming to the US every year. Land will never get cheaper. Money just loses its value. It might be $100,000 and acre in 30 years and you'll be glad to pay it. :baby04:
     
  12. oldduke

    oldduke Member

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    I think you're all being a little hard in your thinking.i saw a 50% drop in real estate prices in the 80's. I did'nt live in the sticks.Altho i wish i had.Our generation is lucky.We had or have parents that worked hard and put some away for us.My mother made $40-$45 a week cleaning houses for the rich. At least we thought they were.She was able to buy 4 acres with a small cabin for $4500.We felt rich.I had to pay $22000 for a half acre and i had to call my mother so she could tell me.If thats what it cost to live where you want to live. pay it.I made about $5000 a year.Do the math. These kids have every right to be p-o-ed.We love to think we are the only ones that know how to work.These kids can work but they may be doomed before they even start.
     
  13. idontno

    idontno Well-Known Member

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    320 Acres of grass.with 4 strand barbwire,with a 13 rooms big house,full basement.40x100 round top shed.lots of out buildings,grain bins.coral and barn.New septic tank and 5 yr old well.Shelter belt on north and south side.10 acres of paire dogs too.Good gravel road.11 miles from town.North of Dodge City,Kansas 40 miles.$200,000.00 email me idontno@ucom.net
     
  14. Lt. Wombat

    Lt. Wombat Well-Known Member

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  15. chamoisee

    chamoisee Well-Known Member

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    Well, it's worse here. I can get raw land (5-10 acres) without utilities or water or anything for under 100,000, but if you want water or anything else or a place to live in (even a shack), it's just about impossible.

    And I'm sorry, but in our case (northern Idaho), it is someone else's fault. Last year I was looking at 10 acres with a cabin out in the boonies, 30K. I should've snapped it up! The land prices doubled, and why? Because the rich folks from more lucrative areas come up here to retire with handfuls of cash and outbid us, offerrign more than what a place is worth. Then, of course, when the neighboring place sells, they too, want an ourageous amount...and all the places go up. Locals cannot afford to buy! Rent is getting just as obscene, how are we supposed to live when they are turning the whole county into a resort/retirement community?

    And as for my own retirement? Ha, ha, ha...not gonna happen.... :rolleyes:
     
  16. MrPG

    MrPG Well-Known Member

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    Well, the first thing you need to know is that prices are always negotiable. Second, real estate online is always priced at the max dollars. If you go to the area and drive around, talk to people, you will get a different story.

    Third, having a big lump sum for downpayment, or enough cash to buy the whole thing, changes things a lot.

    Wait a year, even the Nat'l Assoc. Realtors' own economist stated that real estate prices are going to go down soon.
     
  17. pickapeppa

    pickapeppa Well-Known Member

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    If all goes as planned, we'll be out of debt in six years with every penny of my earnings going toward debt. Beyond that, we plan on paying for everything in cash. Prices should go down, but the long term trend is most likely going to be up, up and away. We will keep in mind paying cash for property, and when the time comes, we will obviously visit the areas in person. Searching on-line for possibilities to zoom in later just got me irritated, that's all.

    OTOH, it's good to know I'm not the only one who's experiencing that 'swimming against the tide' sensation.
     
  18. frugalville

    frugalville Well-Known Member

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    Real estate prices are just seeing the efforts of the FED printing money and the banks expanding credit in overdrive. National bank reserves show less than one penny available for every dollar and 7 cents that has been lent. People are not buying with money, they are buying with credit and debt. (money they will earn in the future, to buy goods today.)

    Everybody burned from the bubble burst in 2000 is now a landlord. Everybody is 'leveraged' in real estate. Most are a few payments away from bankrupcy. 'equity lines' are the new debit card. Too much money and credit chasing to few goods (land) causes prices to run.

    When I say 'real estate' I refer to that overpriced garage in the 'burbs' on a pstage stamp. 'land' is and will always be 'land' and does not follow the 'real estate' mentality. Just because 'real estate' goes down, it does not mean that land prices will do the same.

    Will real estate prices come down... probably. The stock market lost 40%. This is not unreasonable for real estate. But our economy is inflate or die. Any financial slowdown will be met with more credit creation and FDR type policies. Houses in the burbs will come down as more people will try to migrate from the cities to the country. All those 'burbites' will want a smaller house to save money. Every 'boomer' is counting on the new generation to buy it's overpriced assets, so they can have money to retire. Buy with stats saying 50% of the boomers have less than 50k in savings going into retirement, the biggest voting base will make sure the money is printed and flowing their direction. Prescription drugs, Pension guarantee benefit corp, Medicare, SS... print print print.

    Raw, undeveloped land will continue to increase. Wheter this is farmland, parks, pasture, ranches, whatever. Anything not 'developed' will someday have a premium attached to it.

    We don't own it anyway, we just rent it from the Govt. That is why we have deeds to our land, and not titles.

    Land may look 'high priced' right now. But just remember that other countries are holding billions of 'dollars' in their reserve accounts from trade imbalances. Those dollars will eventually come home and try to buy anything they can get their hands on, driving up prices beyond belief. Remember the Japanese and real estate in the 80s'? Spend your dollars on anything, but holding them is a guaranteed losing proposition. The days of the 'savings' accounts are gone.

    The US pays 2 billion a day in interest, just on loans, printed up out of thin air. Foreign aid, same thing.. war funding...printed.. all diluting your purchasing power. Thats 700 billion a year in on the record debt, not counting the trillions of dollars in social security checks that will be printed our of thin air.

    Let's not even talk about Freddie and fannie who hold 40% of the mortgages, getting ready to pull an Enron. Do you think any of those homeowners in New Orleans are still mailing in their mortgage payments?

    Try to get use to comparing the prices of goods to other goods instead of dollars. A 150k piece of property today at $3.00 a gallon gas is 50,000 gallons. The same property sold 5 years ago would have gotton you 100,000 gallons of gas instead. Is property overpriced compared to gas, or in dollars...

    Ok, I'm just rambling and ranting... but that's the swimming against the tide feeling that everybody is having, but nobody is talking about.

    The last point is baby boomers will all be trying to liquidate their assets at the same time. This is deflationary for prices unless the foreigners are allowed to come in and scoop up the lower prices. By then the tarriffs will have started.

    Even the pros are arguing between inflation and deflation. The new fed chief 'ben b-52' wants to target a 2 to 3 % inflation rate per year. The Fed is also not going to release M3 stats starting next March. This is the only number that we can keep tabs on the money printing and credit creation. Only the taxman gets ahead.

    If this post seems like a goobly- garb of ' what the heck is that?' Let me speak frankly.This country is entering a very dark chapter in its existence. The U.S. is bankrupt on paper. If it were any other business, they would have long been out of business. Nobody can predict the future, but history, alhough never exact is a good teacher. Ask your grandparents how 'great' everything was in 1925. Nobody sees it coming. Most people do not see the signs. You will be thankful sitting on your overpriced farmland, away from the big cities, crime, traffic jams, growing fresh vegetables and non- hormoned meats paying them with their own depreciating dollars.

    Again, on the subject of farmland. If you can afford it (pay for it all in cash) or finance it (make the payments).. bite the bullet and get it now !! Increasing population and exodus from the burbs will mean higher prices down the road. The more of anything there is, the less it will be worth. The burbs are spreading lile kuzdu. No more land coming online (unless you are interested is some below sea level property :])

    Fully paid for or leveraged to the hilt. Nothing in between.

    PS I think we paid too much for our 5 acres, but saving an extra 30 minutes in time and gas each way, will long pay for the extra premium I paid to be a little closer to the 'job'. I built my own house, so I just have a small note on the land. Couple more years of ' buckle down' ...

    Buying 'land' is just protecting yourself and your family. You will look back in 10 years on the decision and laugh your butt off wondering why you beat yourself up.
     
  19. Alice In TX/MO

    Alice In TX/MO More dharma, less drama. Supporter

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    "Everybody is 'leveraged' in real estate." No, they aren't. My land is paid for, free and clear. Also, there are plenty of baby boomers that are NOT making six figure incomes and paying $2000 in interest-only loans like some folks in California.

    "The last point is baby boomers will all be trying to liquidate their assets at the same time." No. All my property is income producing. People need a place to live, and I have property to rent. What I hope to do is pass it down to my children.

    I get so tired of sweeping generalizations.
     
  20. TamInAz

    TamInAz Well-Known Member

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    We're of the "bite the bullet & just buy" mentality :) We went ahead and paid what seemed an ungodly amount for the property we now have But we saved a nice amount by being friendly w/the sellers and agreeing to a couple "quirky" requests. Our view is that the property is in a highly desirable area where the land prices will Only go up in the future. The sellers gave us a good deal because we wanted it for Family and animals while most everyone else wanted to subdivide.