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Old 11-07-2007, 08:59 AM
DcifrThs DcifrThs is offline
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Join Date: Aug 2003
Location: Spewin them chips
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Default Re: Iowa farmland value up 21% for year ending September 1st!

this is not even close to comparable. the power of real estate is in the #s. a 21% increase in land value can be a massive return.

lets say it is $5k/acre (made up #s) and you own 100 acres financed w/ 20% down.

you put up 100k + fees/closings etc. (not counting benefits from renting which would obv more than offset those costs)

if the price increases by 20% (to 600k), and you sell in short order, you haven't made 20%, you've made 100% return

Barron
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