Buying some of Grandma’s land

[Farmdog]

I misunderstood, carry on

[skinsfan]

All depends on Where you live and what kind of savings/income you have! $360k down is enough to scare me but I’m not a wealthy man by any means. I’m not positive but I don’t think Land rent is going to pay the note. Ask yourself this, if it wasn’t grandmas would you still be interested!?

[DUKFVR]

Buy it if anyway possible without putting yourself in a bind.

[.243 WSSM]

Is the $3k/ac before the "family discount " is applied?

[Black Ice]

Buying some of Grandma’s land

All depends on Where you live and what kind of savings/income you have! $360k down is enough to scare me but I’m not a wealthy man by any means. I’m not positive but I don’t think Land rent is going to pay the note. Ask yourself this, if it wasn’t grandmas would you still be interested!?

I never want to over extend myself so I don’t think I could do it. I’d be worried if that 50k lease quit coming in I’d have to foot the hole bill until I found someone else to lease it to.


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[Mountaineer]

Somewhat close to a Pierre? My BIL bought about 800 acres about 3 years ago further west in Pennington county near my in laws place and the value has gone up a good bit. Another BIL has family with land near kennebec that does well leasing it for hunting. Buy whatever you can. You can always sell all or part later on if you get in a bind.


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[Kevin]

It really depends on what’s it actually worth. If it’s worth 1500 and acre and you are paying 3000 an acre it’s a bad idea. Land investment profitability starts at the time of purchase. The purchase price should/will also reflect income potential so make sure you are looking at apples to apples.

If you are paying market price, then you need to decide if there are better tracts that are closer to home.

[thegrouse]

I go up there every year. I agree, that sounds like market price for farmland.

[day0082]

Find a few Green Screen investors.

[Beargrasstx]

How often will you get to enjoy your investment? Could you make more money investing that money in land closer to you or in the stock market that you will spend each year to pay the note? Are you married? Kids? Does your family want to retire there? Is this a sentimental purchase or purely for hunting? Will you ever sell this land? How can you make up your retirement income if you do not plan to sell? How much of a financial burden or percentage your income will be going to pay the annual note? What are the taxes? How much maintenance will be involved in this property and can you do it living so far away?

Good luck with your decision either way.

[Pernell]

I don't have a whole lot of input. I assume $3,000 an acre is a good deal for that area? Something about not funding retirement don't sound right. At the end of the day you need to have some sort of income when you retire. I like to take my time and try to let the emotion settle down then look at it from a pure finance perspective. See what it looks like on paper then try and bring some sort of sentimental / family feeling back into the mix. There is a plus knowing the neighbors. Hope it all works out and good luck.

Great advice! I dont buy anything on emotions.

[Hogmauler]

Buy what you can afford without putting yourself and family in a bind. No one can predict what will happen today let alone tomorrow. You still need a retirement fund.

[PYBUCK]

Do you get to pick the 600acres you want or just what she wants to get rid of. Might ask why she is selling that 600 and keeping the rest. It it the best acreage or the worst?

[rtp]

Buying some of Grandma’s land

Land investment profitability starts at the time of purchase.

This point right here can’t be emphasized enough. I won’t buy a piece of real estate at market price.

Are you using an agent to negotiate for you? Family members negotiating with each other can lead to some hard feelings down the road.

IMO there should be some kind of discount for you and your wife if y’all purchase without them having to list it. I make those type offers on real estate all the time. I give a price that is under value but gives the seller an immediate sale without having to go through the trouble, time and cost of putting it on the market. It is good for both parties in many cases. Good luck with your decision.


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[Atfulldraw]

I’m going to have to guess at the numbers since you didn’t say....

The note is going to be about 75-80 a year, but you are hoping that the 50k keeps coming in...

You are probably putting somewhere around 10-15% of your income away for retirement, and hope that that is enough to cover the difference?

Factoring in risk, and with everything else I don’t know....the answer is no.


It puts you way too far out there on a limb.

One hiccup, lose the land lease or lose your job....and the bank owns your down payment and Granny’s land.

My guess is that if you could really afford this, you would have already bought it.
Or if you were ready to buy, your budget would help you figure out how many acres to buy, not how much your wife’s cousin’s wife wants the family to sell to fund whatever project she has going on before Granny dies....