If you had 796 acres of farmland, what would you do with it; rent it, sell it, use it as a vacation property etc etc?

Honestly, that's kinda hard to answer. It would depend upon my personal situation as to which path to take. However land is one asset that will almost certainly always increase in value. But if paying taxes on that land gets to be too much, someone may have to sell some or all of it.

It really all depends, if it's actual farm land, I would split it up and sell it to a housing development. If it had trees and a small lake on it, I would move a house in and live there.

Sell it to a developer, for a very high price, take the money and dump it all in Certificate on Deposit (CDs) in various banks now paying 4.50 to 5percent (here in Jersey, now) and never have to work again ! :) If you that kinda land, here in Jersey, she'd be worth around 500 million. At 4.5% You be earning $225,000 a year, just by waking up in the AM. You could buy me a new Maserati Spyder to show your appreciation :thumbsup: :) :bouncy:

It really all depends, if it's actual farm land, I would split it up and sell it to a housing development. If it had trees and a small lake on it, I would move a house in and live there.

It's actual farm land, no trees and a small pond.

Sell it to a developer, for a very high price, take the money and dump it all in Certificate on Deposit (CDs) in various banks now paying 4.50 to 5percent (here in Jersey, now) and never have to work again ! If you that kinda land, here in Jersey, she'd be worth around 500 million. At 4.5% You be earning $225,000 a year, just by waking up in the AM. You could buy me a new Maserati Spyder to show your appreciation

I can't sell it to a developer, they don't buy this sort of land.

This isn't my land, but I talked to my father today and the conversation drifted to his land. He's getting up there in age (late 50's) and is semi-retired. I grew up on this farm in Iowa and now we currently rent it out in 2 seperate tracts. Both leases expire in November and he has to decide what he really wants to do with it. Right now we get $50,000/ year for tract 1 and $48,000/ year for tract 2. He sends 40% to me and keeps the other 60%.

The one we rent tract #2 to wants to buy it outright and the other wants to keep renting it. He asked my advice (which wasn't useful) and wondered if he should sell it or keep charging rent. My parents don't need the money, they're set pretty well. The last valuation we had done was in 2005 and it was valued at $3700/ acre on both tracts, if someone wants to figure this be my guest.

I just have a hard time swallowing that we could be selling my childhood homestead. On the other hand, we'd get a nice chunk for it.

If you that kinda land, here in Jersey, she'd be worth around 500 million. At 4.5% You be earning $225,000 a year, just by waking up in the AM. You could buy me a new Maserati Spyder to show your appreciation


Sandy, if I ever receive $500 million bucks, I'd buy you a dozen Maserati's:D!

$98,000 per year income on it is nothing to sneeze at. What's it worth on the market?

"He's getting up there in age (late 50's)"
Bite your tongue.

I'd go buy a Jeep Wrangler Rubicon and have fun for a loooooong time with no rules or laws to say what I can or can't do. When that gets boring, start drinking and driving. With nothing around on your own property with that much land, its gotta be a whole lotta fun. See how big you can get a bond fire, crank up the sound system for 24 hours, work on the house naked... possibilites are limitless.

It's actual farm land, no trees and a small pond.



I can't sell it to a developer, they don't buy this sort of land.

This isn't my land, but I talked to my father today and the conversation drifted to his land. He's getting up there in age (late 50's) and is semi-retired. I grew up on this farm in Iowa and now we currently rent it out in 2 seperate tracts. Both leases expire in November and he has to decide what he really wants to do with it. Right now we get $50,000/ year for tract 1 and $48,000/ year for tract 2. He sends 40% to me and keeps the other 60%.

The one we rent tract #2 to wants to buy it outright and the other wants to keep renting it. He asked my advice (which wasn't useful) and wondered if he should sell it or keep charging rent. My parents don't need the money, they're set pretty well. The last valuation we had done was in 2005 and it was valued at $3700/ acre on both tracts, if someone wants to figure this be my guest.

I just have a hard time swallowing that we could be selling my childhood homestead. On the other hand, we'd get a nice chunk for it.

That is just shy of 3 million dollars you could sell it for.

3 million dollars in the bank, at current intrest rates is roughly $160,000/year... and it'll only go up every year due to compound intrest.

Think about it, if you lived off only the interest, you would be "making" $160k/year to do absolutly nothing but watch the grass grow, and STILL have 3 million dollars in the bank. Throw some of those into some very safe gov't bonds, and in 10 years you'd double the money.

However you and your folks slpit it up etc... thats still a big chunk of change.

Over 5%/yr interest is damn good, it would have to be a CD to get that kind of interest. The CD I have is in the 3 something range.

The sell and put the money into CDs should net over 100k/yr in any condition so you'd come out ahead.