Caustic Burno
Well-known member
Beef11":3ehcys8b said:By counting ONLY the lease value as the "return" on investment you are not taking into account the increase in the VALUE of the land.
The lease is the only realized gain on the property until it is sold. Real estate is NOT a sure thing either. many have lost their butts and many more will on land. Just cause things are good and have been doesn't mean they always will be. The idea of this post is how to make land cash flow better. Alternative enterprises instead of conventional non penciling in the box ideas. Land is an investment. I like solid returns on my investments. Many economists are screaming real estate bubble right now. That means land appreciation has exceded real value. If you look at all the tell tale signs they definetly point to something changing in the not to distant future. If that happens your appreciation is turned to depreciation.
A lot of people in this area are planting hybred pines, I just don't see that as a good investment, you do get your ag exeption. Take 20-30 years to get a return on the timber.