Re: Iowa farmland value up 21% for year ending September 1st!
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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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Except that you paid a years worth of interest (say 6.5% on the 400k that you borrowed which costs you 26k) so you're really up about 75k. How is this different than taking out a load for 400k and buying stocks with it? Either one is basically leverage right?
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