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| Had a discussion about this subject last week. If a guy can make the payments for the first five years you have a pretty decent shot at holding onto the ground. A few things working in your favor during that period. Interest is going to be most of your payment during those years so mostly tax deductible. Through those years, commodities will give you one decent paycheck out of the five for a cushion. By the end of the five years, land will have appreciated enough or inflation will have increased to a point the ground can be refinanced if need be for more then buying price.
To any young guys starting out: do not use this advice as a business model. If one of these pieces doesn’t click, the bank will take the ground and most likely any chance you had of being in the ag sector. Use caution until you get a little collateral. | |
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Land payments
