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land prices

cwhite

Member
Those of you who have purchased hunting land lately or those in the real estate business, I was hoping you could share what wooded/mixed land was going for in your area. I'm just starting to look in NE Iowa or SW Wisconsin, but the listings seem to be all over the board. Any info would be appreciated. Thanks
 
They are all over the board down here too...$2000 to 3500 but that's just ball park as you might find some for less if you looked hard enough.

The economy has land prices depressed but most folks who don't have to sell are just hanging onto it until things pic up....;)
 
The listing prices are definitely all over. But the recent sales are substantially lower on average. In Van Buren county there were two recent sales one @ $2300 /acre this was a prime piece of whitetail dirt and was done with out a Realtor. The other was $1750/acre for less acreage and reasonably close. Other recent auction sales have been in the $1400-$1500 range for recreational ground.
 
I would say by those numbers that the land prices have come down to the levels that we were seeing in 2005. I was really looking hard at land back then and it was common to see land selling for right around that $1500 range. I know people say that land values never go down but using history as our best view to the future you only have to go back to the early 80's to know that this is not true. If I had to guess I would say land values will come down from their highs over the next year or two in Iowa unless something unforeseen happens such as a change in the non-resident tag restrictions. I still think land is a great investment but I really think the major difference between now and two years ago is that the buyer with cash/loan pre-approval has all the leverage. A few years ago land was selling at incredible pace and the sellers had all the leverage and in my opinion this is how the land value bubble was created. It will take some time to get back to reality but I don't see the correction being nearly that as what the stock market and residential real estate market went through.
 
The residential market has done minor correcting in some price ranges and locations. IMO it is hard to compare the two. Recreational land is more like buying a second home, sluggish market. On the other hand mixed property with income and recreation will always be a safer investment. Different influences are effecting the value of different types of real estate. Over all the end result looks similar. I think there will be some great deals coming for those in a position to buy. Different segments of the market flourish while other sag.
<O:p</O:p
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Anybody who cares at all about Iowa's hunting traditions should fight any attempts to change regulations or laws that would promote an influx of investment buying or leasing that would continue the limiting of access. Hunter numbers are key to Iowa DNR management of deer. Change the formula to much and we can all kiss our good thing good bye. IMO

GOOOOD DAY!
 
Ironwood you are right that it is hard to compare the residential and recreational markets but I do think that they might be tied together a little more than people think. Recreational ground is a totally different thing than farmland and this is how it gets tied more to the stock market and residential real estate than farmland in my opinion.
I am not sure what you consider minor corrections but all of the major residential real estate markets have seen declines from 15-50%. I know the midwest market has held up well compared to other places but it has still seen a decline. This has had numerous effects on many people, many of the same people that just a few years ago were looking to spend some of their built up wealth on things such as recreational ground are now holding off. Not to mention the fact that along with the collapse of the residential real estate market has come the collapse of the 1031 exchange transaction that was helping drive the market for several years.
Also, many of the people who once had nice looking 401k portfolios that just a couple months ago looked more like 201k's might be a little less likely to spend a couple hundred thousand on land for recreational purposes. Recreational land does generally have a small income buffer that does help negate any land depreciation but these incomes are generally not of any significance when you consider how much your original investment was.
I do think recreational land values have held up very well considering the economy that we just went through. I do have some concerns that the values have been proped up artificially by the extremly strong agricultural boom we just went through. Pure farmland and recreational land could be considered the same thing by some people and much different by others. The prices of corn and soybeans have taken a big hit over the last year and this is where I see the correaltion between the early 80's land boom and bust and what we just saw the last 5 years. Both time peorids saw a huge run up in commodity prices/oil followed by a run up in land values then the major pullback of the late 80's. I have been told that the difference between then and now is that much more debt was being taken on back then compared to now but I still think its something to look into if your in the market to purchase land right now.
Anyways, I only bring up this discussion because I know purchasing land for many people is a big decision that involves substantial risk. I think its important to do as much research as possible so that you can feel good about the decision you make. Many people claim that you can't loose money when you invest in land but I just want to make sure people know that this is not the case. I would say that if a once in a lifetime property came up for sale and your financial situation was very solid than you could throw everything I just stated out the window. Go ahead and make the purchase and enjoy. But if your like many people that are looking to purchase a piece of heaven so that you and your family can enjoy that great outdoors for years come while you reap the rewards of a sound investment that you might rely on come retirement time or tough times then you really need to consider if now is a good time to buy. This is the person that needs to really sit down and consider all the variables.
I know I just had a real long rant but what can I say I am bored down here in Florida. I will say that your right on about Iowa's non resident regulations. It would be ashame to see those get changed but I promise many people are selfishly hoping that they do.
 
I found this article in the QCTimes today. I thought it was kinda ironic considering we were just discussing some of these issues. I wouldn't hesitate to buy in this environment but I would sure feel a lot better if I thought I was getting a real good deal.


DES MOINES - The head of the Iowa Mediation Service said Monday his office is bracing for a new wave of farm failures due to low commodity prices and increased input costs.
Mike Thompson, director of a private, nonprofit program that works with borrowers and lenders to deal with refinancing and foreclosure concerns, said he expects the case load for farm operations facing financial problems to top 1,000 this year, compared with about 700 last year.
"All the data we're seeing is that next year will be even worse," he said. "It won't be pretty for awhile."
Hardest hit have been dairy farmers, Thompson said, noting that some dairy operations are losing up to $2 million and likely will go out of business given the current economic environment.
Hog operations also are "in real trouble this year," and grain farmers may see their corn crops shrink due to late planting and early freezing that could sap grain weights and lower their financial returns, he said.
"We think we're going to see a significant decrease in income," Thompson said.
Mediation services are available to lenders and borrowers to try to reach a workable financial agreement if possible before proceeding to foreclosure, he said.
Thompson's office has handled about 33,000 mediation cases since the service was established in 1985 in the throes of Iowa's worst farm debt crisis. He did not expect possible foreclosure situation would reach the 1985 levels now, but they could hover near activities seen in the late-1980s and early 1990s, he said.
"Things are not good in rural Iowa," said Eric Tabor of the Iowa Attorney General's Office.
Members of the state's Revenue Estimating Conference last week expressed concern over slumping farm commodity prices and the state's leading economic indicators index projects farm income will decline by 10 percent in fiscal 2010.
 
With a little home work and common sense I would buy land now in a heart beat. Rec. ground investment is no different than other investments, but safer in my opinion, sell at the top of the cycle and buy and hold at the bottom of the cycle. No better time to buy than now if you have good credit and net worth. Prices will increase in the future with those who didn't buy kicking themselves and those who have held land for awhile making money.
 
Alright one last piece of info for people to think about. If you purchased land in 1981 for the average sale price at that time, $2147.00 or $3633 adjusted for inflation, then it took you until 2002 to get back to even not counting inflation or 2008 if you adjust for inflation. Again, I am not trying to be debbie downer here on real estate but I want people to know that people can and do loose money of land.

I know several families that were big into farming that bought a lot of high dollar land in the early 80's that never survived the downturn. I couldn't agree more that land is one of the most sound investments that exist for capital preservation but timing is key. To make the mistake of buying at the top and having to wait over 20 years to get your money back is probably not what most people are looking for.

I think JDubs hit the nail of the head which is to buy at bottom and sell at the top. I guess the question is where are we currently at? The numbers sure seem to look like the top to me. Here is my source so if my numbers are off take it up with Mr. Duffy.

<TABLE style="TABLE-LAYOUT: fixed; WIDTH: 384pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=512 border=0><COLGROUP><COL style="WIDTH: 48pt" span=8 width=64><TBODY><TR style="HEIGHT: 15.75pt" height=21><TD class=xl718183 style="BORDER-RIGHT: black 0.5pt solid; WIDTH: 384pt; HEIGHT: 15.75pt" width=512 colSpan=8 height=21>Iowa Statewide Farmland Values</TD></TR><TR style="HEIGHT: 51pt" height=68><TD class=xl638183 style="WIDTH: 48pt; HEIGHT: 51pt" width=64 height=68>Year</TD><TD class=xl648183 style="WIDTH: 48pt" width=64>Price per Acre</TD><TD class=xl648183 style="WIDTH: 48pt" width=64>GDP Implicit Price Deflator</TD><TD class=xl808183 style="WIDTH: 48pt" width=64>Price in '2000' Dollars</TD><TD class=xl658183 style="WIDTH: 48pt" width=64>Year</TD><TD class=xl648183 style="WIDTH: 48pt" width=64>Price per Acre</TD><TD class=xl648183 style="WIDTH: 48pt" width=64>GDP Implicit Price Deflator</TD><TD class=xl808183 style="WIDTH: 48pt" width=64>Price in '2000' Dollars</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl698183 style="BORDER-TOP: medium none; HEIGHT: 12.75pt" height=17>60</TD><TD class=xl708183 style="BORDER-TOP: medium none">$237</TD><TD class=xl748183>21.00</TD><TD class=xl758183 style="BORDER-TOP: medium none; BORDER-LEFT: medium none">$1,129</TD><TD class=xl778183 style="BORDER-TOP: medium none">84</TD><TD class=xl678183>$1,357</TD><TD class=xl748183>67.70</TD><TD class=xl678183>$2,004</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>61</TD><TD class=xl678183>$237</TD><TD class=xl748183>21.20</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,118</TD><TD class=xl778183 style="BORDER-TOP: medium none">85</TD><TD class=xl678183>$948</TD><TD class=xl748183>69.70</TD><TD class=xl678183>$1,360</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>62</TD><TD class=xl678183>$241</TD><TD class=xl748183>21.50</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,121</TD><TD class=xl788183>86</TD><TD class=xl678183>$787</TD><TD class=xl748183>71.30</TD><TD class=xl678183>$1,104</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>63</TD><TD class=xl678183>$250</TD><TD class=xl748183>21.80</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,147</TD><TD class=xl788183>87</TD><TD class=xl678183>$875</TD><TD class=xl748183>73.20</TD><TD class=xl678183>$1,195</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>64</TD><TD class=xl678183>$265</TD><TD class=xl748183>22.10</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,199</TD><TD class=xl788183>88</TD><TD class=xl678183>$1,054</TD><TD class=xl748183>75.70</TD><TD class=xl678183>$1,392</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>65</TD><TD class=xl678183>$293</TD><TD class=xl748183>22.50</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,302</TD><TD class=xl788183>89</TD><TD class=xl678183>$1,139</TD><TD class=xl748183>78.60</TD><TD class=xl678183>$1,449</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>66</TD><TD class=xl678183>$354</TD><TD class=xl748183>23.20</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,526</TD><TD class=xl788183>90</TD><TD class=xl678183>$1,214</TD><TD class=xl748183>81.60</TD><TD class=xl678183>$1,488</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>67</TD><TD class=xl678183>$397</TD><TD class=xl748183>23.90</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,661</TD><TD class=xl788183>91</TD><TD class=xl678183>$1,219</TD><TD class=xl748183>84.40</TD><TD class=xl678183>$1,444</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>68</TD><TD class=xl678183>$409</TD><TD class=xl748183>24.90</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,643</TD><TD class=xl788183>92</TD><TD class=xl678183>$1,249</TD><TD class=xl748183>86.40</TD><TD class=xl678183>$1,446</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>69</TD><TD class=xl678183>$419</TD><TD class=xl748183>26.10</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,605</TD><TD class=xl788183>93</TD><TD class=xl678183>$1,275</TD><TD class=xl748183>88.40</TD><TD class=xl678183>$1,442</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>70</TD><TD class=xl678183>$419</TD><TD class=xl748183>27.50</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,524</TD><TD class=xl788183>94</TD><TD class=xl678183>$1,356</TD><TD class=xl748183>90.30</TD><TD class=xl678183>$1,502</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>71</TD><TD class=xl678183>$430</TD><TD class=xl748183>28.90</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,488</TD><TD class=xl788183>95</TD><TD class=xl678183>$1,455</TD><TD class=xl748183>92.10</TD><TD class=xl678183>$1,580</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>72</TD><TD class=xl678183>$482</TD><TD class=xl748183>30.20</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,596</TD><TD class=xl788183>96</TD><TD class=xl678183>$1,682</TD><TD class=xl748183>93.90</TD><TD class=xl678183>$1,791</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>73</TD><TD class=xl678183>$635</TD><TD class=xl748183>31.90</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$1,991</TD><TD class=xl788183>97</TD><TD class=xl678183>$1,837</TD><TD class=xl688183>96.80</TD><TD class=xl678183>$1,898</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>74</TD><TD class=xl678183>$834</TD><TD class=xl748183>34.70</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$2,403</TD><TD class=xl788183>98</TD><TD class=xl678183>$1,801</TD><TD class=xl688183>97.00</TD><TD class=xl678183>$1,857</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>75</TD><TD class=xl678183>$1,095</TD><TD class=xl748183>37.90</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$2,889</TD><TD class=xl788183>99</TD><TD class=xl678183>$1,781</TD><TD class=xl688183>98.00</TD><TD class=xl678183>$1,817</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>76</TD><TD class=xl678183>$1,368</TD><TD class=xl748183>40.20</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,403</TD><TD class=xl788183>00</TD><TD class=xl678183>$1,857</TD><TD class=xl688183>100.00</TD><TD class=xl678183>$1,857</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>77</TD><TD class=xl678183>$1,450</TD><TD class=xl748183>42.80</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,388</TD><TD class=xl798183>01</TD><TD class=xl678183>$1,926</TD><TD class=xl688183>102.40</TD><TD class=xl678183>$1,881</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>78</TD><TD class=xl678183>$1,646</TD><TD class=xl748183>45.80</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,594</TD><TD class=xl788183>02</TD><TD class=xl678183>$2,083</TD><TD class=xl688183>104.20</TD><TD class=xl678183>$1,999</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>79</TD><TD class=xl678183>$1,958</TD><TD class=xl748183>49.50</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,956</TD><TD class=xl788183>03</TD><TD class=xl678183>$2,275</TD><TD class=xl688183>106.40</TD><TD class=xl678183>$2,138</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>80</TD><TD class=xl678183>$2,066</TD><TD class=xl748183>54.00</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,826</TD><TD class=xl788183>04</TD><TD class=xl678183>$2,629</TD><TD class=xl688183>109.50</TD><TD class=xl678183>$2,401</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>81</TD><TD class=xl678183>$2,147</TD><TD class=xl748183>59.10</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$3,633</TD><TD class=xl788183>05</TD><TD class=xl678183>$2,914</TD><TD class=xl688183>113.00</TD><TD class=xl678183>$2,579</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>82</TD><TD class=xl678183>$1,801</TD><TD class=xl748183>62.70</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$2,872</TD><TD class=xl788183>06</TD><TD class=xl678183>$3,204</TD><TD class=xl688183>116.70</TD><TD class=xl678183>$2,746</TD></TR><TR style="HEIGHT: 12.75pt" height=17><TD class=xl668183 style="HEIGHT: 12.75pt" height=17>83</TD><TD class=xl678183>$1,691</TD><TD class=xl748183>65.20</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$2,594</TD><TD class=xl788183>07</TD><TD class=xl678183>$3,908</TD><TD class=xl688183>119.80</TD><TD class=xl678183>$3,262</TD></TR><TR style="HEIGHT: 12.75pt; mso-height-source: userset" height=17><TD class=xl698183 style="BORDER-TOP: medium none; HEIGHT: 12.75pt" height=17>84</TD><TD class=xl678183>$1,357</TD><TD class=xl748183>67.70</TD><TD class=xl768183 style="BORDER-LEFT: medium none">$2,004</TD><TD class=xl778183 style="BORDER-TOP: medium none">08</TD><TD class=xl678183>$4,468</TD><TD class=xl688183>122.50</TD><TD class=xl678183>$3,647</TD></TR></TBODY></TABLE>
 
Alright one last piece of info for people to think about. If you purchased land in 1981 for the average sale price at that time,

Then you got burned by the hype of great grain prices.

Farm land prices at that time are meaningless now. Find data on what pasture land in southern Iowa was going for in 1981. I bet good money it wasn't $2K, probably more like $200, since nobody wanted it cause it couldn't grow corn and was only good for growing cows. Then somebody along the way realized it could also grow deer and the price took off.

There are so many variables here except for one: They ain't making more acres of ground. Do your homework, look at your budget, figure out what you can afford, because only you can put a price on the "entertainment value" of a piece of property.

There is more to owning a piece of ground than "beating the stock market", but that is JMO.
 
I live in MN, own property and I also sell farms/real estate for a living. Land prices have dropped considerably in parts of MN. Rec land/wooded land is really down, ag land has also dropped, but not as bad. In some areas of northern MN, land has dropped from $1500 to $750. In my area farm land that sold for $3000 an acre is now down to $2000.

I think this downward trend will continue for awhile. The investor is either out of the market or has already bought. Some land owners simply refuse to accept the fact that their parcel has dropped, and then it sits and sits on the market. If interest rates go up, which they will, due to our weakening dollar and excessive spending by our government, then land prices will drop even more.

The bottom will come when interest rates are at 5-10 year highs, which could happen in the next 2-3 years.

Personally, I don't mind the drop, I may look at buying more. I like land parcels that have CRP and/or tillable ground to help make the payment, you can always improve the habitat on the farm, it does not have to be perfect when you purchase it. Improving the farm is actually the second most enjoyable part of owning the real estate, next to hunting the land!
 
Bronc hit it on the head. The problem with comparing today's down turn to the 1980's is the rec land market. In the 80's buying hunting ground was unheard of. Today it is a form of entertainment and relaxation. It is down now but will go up. I agree with Hardwood the bottom may be 2 years away, but when it comes to land investment that is not long, and it will go up!
 
I couldn't agree with you guys more that owning land is a completely different beast than investing in the stock market or owning other types of investments. The mere satisfaction you get by hunting, managing and sharing your property with others makes it that much more valuable to an individual than what its actual market value truly is. I have personally invested in land because it is a great investment if bought right and in a timely manner but most importantly it is a great place to hunt with family and friends. I just really believe that very few people, no matter how much they love their land, can afford to buy at the wrong time. I personally feel like I owe it to my family to do the right research before I take on the risk of owning land as I am sure everyone does.

I will admit that I get a little sensitive when I hear people say that land will never go down, buy away. If you bought land last year at this time and are already 20% down with further to drop then how long can you reasonably expect to get back to even? All I know is that the last time this happened it took over 20 years and if land appreciation gets back to its historical average of 5.5% it could take many years. Not to mention we just saw appreciation anywhere from 70-100% in the last 5 years which could mean slower appreciation going forward when we finally stop going down. Let me explain why I have been so vocal about my opinion.

5 years ago when I graduated from college and moved to Philadelphia everyone and their brother was trying to convince me that I needed to buy a house. A house was a great investment and their value never goes down. Not all of these people who were giving me this advice were idiots because for a 20 year span the housing market did have a major run up. As far as they were concerned this 20 years of going up was good enough to claim you can't loose on a house. Who would have known that 2 years after we purchased our first house outside of Philadelphia I would have to make a move because of my job and the housing market had just taken a 30-40% dump. It was a great learning experience for many people, including myself. When things seem too good to be true, they generally are.

Bottom line is I love owning land as much as anyone. The benefits are unbelievable and even if the value goes down you still have the land. I also know that over time the land you purchase today will be worth more than what you paid eventually(the real question here is how long is eventually?). I know that land is not infinite and they are not making anymore. I know all of this. I just want to make it clear that buying land at the wrong time can be a big mistake. If you have the money and could care less about the return then no doubt everything I just said probably sounds crazy. But if your like many people who decide to buy land with money that is very important to you and your family then I really think you need to do your research and come to your own conclusion when you think its the right time to chase your dream of owning your own piece of heaven.

Bronc you brought up an interesting point when you mentioned how all this great rec land that is bringing top dollar today was once considered worthless. To me that just reinforces the fact that in todays real estate market you have to be much smarter when purchasing this type of land compared to back then because the increased value has added risk. The higher prices of today make recreational land purchases much more risky. Of course with the added risk comes the added rewards but, not to beat a dead horse, but we just saw land values jump to historical levels in a short time period. The fact that the market always works it way back to the average gets me real nervous when you see 20% annual returns year after year.
 
Bronc you brought up an interesting point when you mentioned how all this great rec land that is bringing top dollar today was once considered worthless. To me that just reinforces the fact that in todays real estate market you have to be much smarter when purchasing this type of land compared to back then because the increased value has added risk. The higher prices of today make recreational land purchases much more risky. Of course with the added risk comes the added rewards but, not to beat a dead horse, but we just saw land values jump to historical levels in a short time period. The fact that the market always works it way back to the average gets me real nervous when you see 20% annual returns year after year.

Another thing you might want to consider about the price of pasture land back in the '80's was that those buying the land were locals. Now, Iowa land is sold on the national real estate level, as people who are used to seeing hunting land sell for $5-10K an acre in their eastern home state think that Iowa land at $2K an acres is plenty affordable (with better trophy potential). Give them a tag every year and see how much they like the land........ Any guesses what will happen to rec land values then?

I'm not saying that now is a great time to buy land. It probably isn't. I said do your homework and wait for what you personally consider a good deal based on your budget, outlook and goals.
 
Just a couple more thoughts on this subject...

While land prices have dropped, so have sales because many landowners were enticed to list when land prices were high.

Now that prices have dropped does not mean that they are willing to accept those prices, most just leave their land on the market at the same listed price and choose to wait out the current economic downturn.

Land that comes up for auction or is listed because and elderly parent/landowner passes away and children want to sell the farm quickly could be a bargain right now.

That does not mean that land will be prime recreational property and comparing those prices may not be fair and relevant.

Much of the land I have seen sold was not on the market and landowners were not willing to take a penny less then what it had been worth.

Long term...land is an excellent investment even with ups and downs, if you buy low, sell high.

I bought mine not as an investment but because of a deep seated love for the land......;)
 
Doubletree, you hit it. If you buy rec/hunting land hoping the value will go up so you can make money or even just be richer on paper, you bought for the wrong reason. Buy when you can afford it, a chunk you love and want to improve and enjoy, then forget about market value! When you can honestly say your land isn't for sale at triple what you paid for it, you have finally "got it".
 
I bought mine not as an investment but because of a deep seated love for the land......;)

That right there is what i'm talking about! :way:

Someday I hope I can say the same thing about my own piece of heaven.

When I buy land, it will not only be for me, but for my friends and FUTURE GENERATIONS OF MY FAMILY! If I buy when I can afford, I don't need to worry about market values, because it's not going to get sold while i'm still around :)
 
This is a great tread with great input from all. I personally have bought land that had a return before any appreciation or recreational value was figured into it. For me looking at a farm investment first comes at a return approach and secondly the recreational opportunities. Now if the second does not exist I move on, but you need to have vision. Hardwood11 hit the nail on the head, management can create a stunning hunting property where maybe a marginal one once existed, often with income produced from your conservation efforts. More often than not in the process the less productive farm ground goes to cover, leaving you with better overall row crop production for your farmer. You are a good steward to more than just the land with this approach. Thanks for all the great input. I often have trouble think outside of my box and I need what you all have brought out here to widen my view.
 
When you can honestly say your land isn't for sale at triple what you paid for it, you have finally "got it".

I just experienced that (neighbors land sold for three times what I paid for mine) but I wasn't interested in selling as I'm not "done with it yet".:way:
 
Land for sale

Good point guys...the bottom line is that owning land is really a "fun" hobby. I underestimated the obsession that would come out of owning a piece of ground. Planting trees, food plots, timber improvements, creating ponds, planting native grasses, mineral licks, game cameras, hanging stands. It is right up there with the actual hunt itself. Therefore, even when the season is closed, we can still enjoy our hobby. I encourage anyone on here to seriously consider purchasing a parcel, even 10 acres, you won't regret it!
 
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