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Post by davers on Mar 31, 2017 3:42:40 GMT -5
You guys are too lucky! NE LaPorte county 11 acre scrub woods down my road just sold for $176k. The new going rate has been $15k/acre minimum. Freakin stupid!!!!!!! A buddy was looking at a local subdivision layout map recently. He said 1/4 acre lots were starting at $90k. I give up. Where I use to live, North of Evansville in McCutchanville; land sold for around what you posted @ $176K to $190K per acre, in 2008. Had 15 acres there before my Brother and I sold it, along with our former home which was on the 15 acres. Back in the early 1970's until the mid-1980's that area around our property had two 80-90 acre mature woods, of which both are now up-scale Subdivisions. We sold our place up there in two days, then moved here in Central Kentucky. Our former Neighbor has his home on the market going on for five years now. His home is setting on two acres, and he is asking a bit over $425K, but he started at $900K or around that figure.
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Post by boonechaser on Mar 31, 2017 10:11:00 GMT -5
Hard to compare urban land prices and rural land prices. Same can be said of good high fertility farmland to just pasture or recreational land. Real Estate prices depend on LOCATION, LOCATION, LOCATION.
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Post by deadeer on Mar 31, 2017 10:25:44 GMT -5
Hard to compare urban land prices and rural land prices. Same can be said of good high fertility farmland to just pasture or recreational land. Real Estate prices depend on LOCATION, LOCATION, LOCATION. 75mi from Chicago. More IL license plates on the weekends than locals in my area.
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Post by throbak on Mar 31, 2017 18:10:03 GMT -5
"5mi from Chicago. More IL license plates on the weekends than locals in my area."
Lol we have Buckeyes And I'd say more out of area than locals by far
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Post by wesb81219 on Mar 31, 2017 20:21:33 GMT -5
Hard to compare urban land prices and rural land prices. Same can be said of good high fertility farmland to just pasture or recreational land. Real Estate prices depend on LOCATION, LOCATION, LOCATION. 75mi from Chicago. More IL license plates on the weekends than locals in my area. We call those ppl "FIPS"
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Post by deadeer on Apr 1, 2017 0:07:17 GMT -5
75mi from Chicago. More IL license plates on the weekends than locals in my area. We call those ppl "FIPS" Glad to know we are like minded!
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Post by steiny on Apr 3, 2017 10:05:36 GMT -5
I've owned ground for almost 30 years now, and purchased my most recent piece a few months ago. Original stuff was borrowed for 15-20% down, with later pieces being cash purchases. My biggest piece is right out the back door and we've purchased three additional, adjoining parcels over the years.
Also have hunting ground about 5 hours away in IL, that we spend a lot of time on each fall. Have not experienced the horror stories of trespassing, break ins and theft I hear so many talking about. Enjoy being able to hunt another state and future purchases will likely be in that area, because the hunting is better and it's much less populated country.
CRP programs and harvesting of timber have been real nice side benefits on my home property. Initially, the payments from such were critical in helping me make payments, now they are a nice little side income that pay the taxes and help cover some expenses such as food plotting. I would encourage getting involved in some CRP programs.
Somebody mentioned tapping their 401K to purchase ground. I think this is a horrible idea and would strongly recommend against it. It will set you back big time and severely damage your retirement plans. Would be smarter to either pick up a second job or do without something to accumulate a down payment for ground. If things are such that you need to consider tapping the 401K, you probably would not be wise to purchase recreational land. Just lease or go on hunting trips instead, much cheaper.
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Post by tynimiller on Apr 3, 2017 10:20:13 GMT -5
I'm right there with Steiny...and until the deal fell into my lap I was thinking by a 15-20 year plan before I'd realistically be able to buy some land.
Now life can change and such but financial security into ones future is much more important than where you will hunt...
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Post by davers on Apr 3, 2017 10:45:14 GMT -5
Somebody mentioned tapping their 401K to purchase ground. I think this is a horrible idea and would strongly recommend against it. It will set you back big time and severely damage your retirement plans. Would be smarter to either pick up a second job or do without something to accumulate a down payment for ground. If things are such that you need to consider tapping the 401K, you probably would not be wise to purchase recreational land. Just lease or go on hunting trips instead, much cheaper. Borrowing against ones' 401K or IRA, for purchasing hunting property, is a VERY BAD IDEA!!
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Post by greghopper on Apr 3, 2017 11:13:46 GMT -5
Somebody mentioned tapping their 401K to purchase ground. I think this is a horrible idea and would strongly recommend against it. It will set you back big time and severely damage your retirement plans. Would be smarter to either pick up a second job or do without something to accumulate a down payment for ground. If things are such that you need to consider tapping the 401K, you probably would not be wise to purchase recreational land. Just lease or go on hunting trips instead, much cheaper. Borrowing against ones' 401K or IRA, for purchasing hunting property, is a VERY BAD IDEA!! Explain how this is a BAD Idea....Do tell BTW....your basically paying your self back!
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Post by jjas on Apr 3, 2017 11:36:18 GMT -5
Greghopper In the end, everyone needs to make their own decisions, but here's an article with a couple of points highlighted that explain some of the issues that come with borrowing from your 401k.... www.marketwatch.com/story/avoid-the-temptation-of-dipping-into-your-401k-2015-06-04From the article.... "Those who borrow from their 401ks lose out on tax efficiency, too. Loans are repaid with after-tax dollars. In other words, someone in the 25% tax bracket would need to earn $125 to repay $100 of the loan. Savers’ 401k money is taxed again when withdrawn in retirement, so those who take out a loan are subjecting themselves to double taxation. Employees who leave their jobs, are laid off or fired typically have to repay their loan within 60 days. If they don’t, the loan amount is considered a distribution, subjected to income tax and a 10% penalty if the borrower is under 59 and a half."
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Post by steiny on Apr 3, 2017 11:39:27 GMT -5
Explain how this is a BAD Idea....Do tell
BTW....your basically paying your self back!
401K Plans are intended for retirement and one of the huge benefits of these plans is that you are contributing pre-tax, you only pay tax when you start drawing off the 401K in retirement. 401K Loans are supposed to be paid back. You will have to pay it back with after tax money, then you will get taxed again when you draw from your 401K in retirement, essentially paying double tax. Money borrowed is no longer in your investment pool either, missing out on growth and appreciation opportunity. You could easily cost yourself an additional 25-50% more long term, than the money you actually get your hands on with the loan.
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Post by greghopper on Apr 3, 2017 11:53:54 GMT -5
All the 401 loans I seen used had folks paying there self back in short term and paying around 6% back with the loan!
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Post by lawrencecountyhunter on Apr 3, 2017 12:24:37 GMT -5
I know with mine, there's a 25k limit on the loan and it must be repaid within (I think*) 5 years. Small potatoes. I'm not sure how this would this cost you any more than not putting it in there to begin with? You'd be paying income tax on it if you were putting it in a savings account to save for a down payment.
Also, you're just moving some investments from the stock market to real estate. The land will appreciate in value. To me, it's a much better decision than to buy something that depreciates, like a car ( I know several who have done that with 401k loans).
In reality, I know very very few people who have actually worked and saved money to buy their own land. I know that there are a few here, and I really admire that. The vast majority of folks I know who own land either inherited it, bought it with an inheritance, or it was given to them by parents or family members.
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Post by 76chevy on Apr 3, 2017 12:39:39 GMT -5
I would not even consider a 401k loan to purchase land.
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Post by whitetaildave24 on Apr 3, 2017 13:06:42 GMT -5
I took out a small chunk of my retirement money to put down. I had no hesitations. I have plenty of time to still save for retirement and I'll pay it back in 5 years or less at a 2.3% interest rate. Find that rate from a lender.
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Post by throbak on Apr 3, 2017 15:38:08 GMT -5
L county ;you know two now I bought ,worked and paid for every acre of my 125 2 regrets I should have borrowed more so I could have had more .I never bit off more than I could chew , I could have in afterthought chewed more But I wanted farm paid for before retirement Idic that Second I wish my farm was separate from my home
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Post by wesb81219 on Apr 3, 2017 15:40:07 GMT -5
I took a 401k loan to purchase my home and in 3 yrs when it's paid off I will again consider a loan to buy either another house on property to hunt or a hunting property. Your paying uncle sam at one time or another so I'm going to enjoy my money right now.
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Post by steiny on Apr 3, 2017 18:10:34 GMT -5
A little barnyard math on borrowing from your 401K, let's use $10,000 for one year.
You will have to pay interest on this amount, at 5%, that equals $500 You are taking dollars that were untaxed, now have to use taxed dollars to pay it back. If you're in the 25% bracket, that's $2,500 Most 401K invested did very well this year, 15% gains were pretty common, that's $1,500 gains missed out on.
So $4,500 to use $10,000 for one year. Extend the duration or increase the amounts and it gets progressively worse. Save money that you want to spend on things someplace other than a 401K, and leave your retirement money untouched and working until retirement.
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Post by lawrencecountyhunter on Apr 3, 2017 18:37:12 GMT -5
Yes, it will cost money.. I still don't see a disadvantage over saving it somewhere else though. The 5% interest goes into your account to somewhat mitigate your lost interest gains, so I don't see that $500 as a loss.
If I save 10k in a savings account or similar over the course of a couple years to use as a down payment:
I pay that same $2500 in income taxes before it goes in the account.
I lose opportunity cost every year it's not invested. Not just the one year I borrow it out.
I lose purchasing power the entire time I'm saving, since inflation is much higher than the interest rate of the savings account.
Maybe I'm missing something? I still have several years to pay on my house before purchasing land, but would like to have a plan together for when that day comes.
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