OutdoorJunkie
Active Member
Just wondering y'all's thoughts on Land prices in the middle TN area and wonder if they will ever go back to being somewhat affordable. The land is going for an unreasonable amount and acre right now.
Back when I was looking for land in Middle and Southcentral TN in the mid 80s, the going rate for 200-500 acre chunks of land was around $250/acre. A really good piece might bring $350/acre. But the value of non-ag land was primarily based on timber value. The rage of buying land for hunting hadn't started yet. I looked at a 1,000-acre clear-cut in Wayne County that was going for $50/acre. I turned it down. Realtor called back and asked if I would take it for $25/acre.When I was kid I remember seeing and hearing of land bringing a few 100 dollars an acre, that hasn't taken place again that I'm aware of.
And I think many people can afford 20-40 acres at a reasonable price.For some odd reason, big chunks of land still aren't selling that well in my area. I guess it's just a tad too far from Nashville.
I'm sure you're holding on to it.And I think many people can afford 20-40 acres at a reasonable price.
But I would have a hard time throwing down $500K for 2-300 acres. The interest payments alone would make it unattractive at 2-3K an acre, even if it's technically a good deal.
I got very lucky and bought this mostly wood property for about 1K an acre. That was 7 years ago.
Today it is appraising for $3-4K.
American people aren't making more people. US birth rate has declined 20% since 2007. That's the same story in the western world. Japan is a demographic disaster time bomb. Actually, that bomb dropped already. Same for China.I've never seen or heard of land dropping in price. About the only thing I can think of that would drop land prices would be a dramatic drop in human population. And if that happens, the last thing we'll be worried about is land prices. People keep making more people, but God isn't making more land to put them. So count on prices continuing to climb.
American people aren't making more people. US birth rate has declined 20% since 2007. That's the same story in the western world. Japan is a demographic disaster time bomb. Actually, that bomb dropped already. Same for China.
LBL above is right. Wait another year or two for interest rates, the economy to take care of demand. But long term, buy it for hunting, for recreation, but not investment unless you can earn income from it. With a declining birth rate, how can that be anything but long term deflationary? I don't even think it's an inflation hedge anymore.
Believe it or not.The US census says there are 332 million people recorded in America today. In 2007 there were 302 million. A 30,000,000 person increase doesn't seem like a declining population. Birth rates might be trending down. Population is not.
I think most of that 30,000,000 walked across the southern border since 2007.The US census says there are 332 million people recorded in America today. In 2007 there were 302 million. A 30,000,000 person increase doesn't seem like a declining population. Birth rates might be trending down. Population is not.
What's the investment admonition I'm thinking of, oh yes. Past performance is not a guarantee of future results or something like that.Paid 1100 an acre for mine and sold it for 3000 an acre 7 years later. If that isn't an investment I don't know what is. I don't see land prices coming down in the future.