I bought a farm in February, the deal closes end of May. When this all started going down in March I was considering walking away from the deal.presidentcarter said:Hopefully I'm the only one thinking it's wise to save for acreage, not a fancy house or condo in a dense urban market.
Land is where it's at.
But NPCs need to keep buying up overpriced condos and small lot family homes.:tard:
In the end I decided to stick with it because I have a business plan for the farm, great financing, and the thought that farmland would be a safe asset space. The bright side is I sold a bunch of stock in preparation for the purchase (Not that I got out of it all before the drop).
When I was looking in my area, we used a 1 acre building lot as comparable. As my farm wasn't too large, and had a building lot we factored that in to the price. There was a 1 acre building lot going for 200K CAD in my area, which kind of gave me the push to pay a slight premium on the farmland.
When bidding on the land, there was another buyer and our hope was that "it wasn't a city buyer". Basically City people come in and overpay. They come from the city where simply put there is a lot of money flying around. I can vouch for this myself, a couple of my buddies from Toronto can't believe how much land I own. I have 92 acres of land 50 workable and its about the same price as a 800 sq ft condo I own downtown. It's hard to get your head around it. The condo is rented, and actually would cash flow more than the farm, but when you think of value .... something seems out of sorts. Once the mindset changes you could see a shift very quickly - think Roosh Mountain home. It doesn't take many people from the city to really cause a shift in the country.
A sale recently went through for 300K on another rural lot, I haven't got the details on this one but this is likely city money.
In my area in particular, you can't sever a new lot off your farm anymore, so they aren't building any more of them.