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8 registered members (7mmSTW, sw1002, Cactus_buck, Hunting15, Rockstar007, BC_Reb, 202P&Y, akbejeepin),
734
guests, and 0
spiders. |
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Key:
Admin,
Global Mod,
Mod
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235413
01/21/15 09:26 AM
01/21/15 09:26 AM
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Joined: Jan 2007
Posts: 14,293
Hoover
burbank
Booner
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Booner
Joined: Jan 2007
Posts: 14,293
Hoover
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Sell the car and do it. 30k is just car payment ive got plenty $ to pay it off i just havent. i got a sweet interest free finance on a vehicle and just have been making monthly payments
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235429
01/21/15 09:43 AM
01/21/15 09:43 AM
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Joined: Oct 2003
Posts: 25,707
South Alabama
Rebelman
Freak of Nature
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Freak of Nature
Joined: Oct 2003
Posts: 25,707
South Alabama
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Lets just rough run this scenario out and say the goal is to be debt free by EoY 2020. *Since you said you have enough money to pay of existing debt I'm excluding it for now. Harvest said timber on existing owned land ---- $100K Regeneration cost ($10K) Leaving you $90K Purchase Price of new property $200K Down Payment of 20% - $40K Leaving you $50K in Cash and ($160K) in Debt Finance for 20 years makes payments $959/month. (6% interest) Place the $50K Cash in an account and set up auto pay of $959 monthly. Begin depositing $500/ month in said account. Future Timber value of new land @ age 13 (5 years) is $84K. Use Timber income to pay $84K on loan in Feb of 2020 Remainder of loan will be paid off on December of 2020. So if you can make $500/month payments for the next 5 years then, really it is a no brainer if you are wanting to grow your land portfolio. *Disclaimer* I am not an accountant. Do your own math and make your own decisions. 
Last edited by Rebelman; 01/21/15 10:11 AM.
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235432
01/21/15 09:47 AM
01/21/15 09:47 AM
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Joined: Jan 2011
Posts: 38,489
N. Bama
257wbymag
Boo Boo Head
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Boo Boo Head
Joined: Jan 2011
Posts: 38,489
N. Bama
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Or I could buy the 200 and you'd have a good neighbor!
Quietly killing turkeys where youre not!!!
My tank full of give a fraks been runnin on empty
I'm the paterfamilias
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Re: Land purchase question
[Re: Remington270]
#1235439
01/21/15 09:51 AM
01/21/15 09:51 AM
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Joined: Oct 2003
Posts: 25,707
South Alabama
Rebelman
Freak of Nature
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Freak of Nature
Joined: Oct 2003
Posts: 25,707
South Alabama
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$420/acre timber value for a 13 year old plantation? Not in my area. That's a high site index for sure. That is nothing special... 1.5 loads/acre at $10/ton.
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Re: Land purchase question
[Re: Rebelman]
#1235445
01/21/15 10:04 AM
01/21/15 10:04 AM
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Joined: Nov 2011
Posts: 22,110
USA
Remington270
Freak of Nature
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Freak of Nature
Joined: Nov 2011
Posts: 22,110
USA
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$420/acre timber value for a 13 year old plantation? Not in my area. That's a high site index for sure. That is nothing special... 1.5 loads/acre at $10/ton. Wait I thought pine pulp was getting only a few dollars per ton? I don't have much experience in forestry though.
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235481
01/21/15 10:34 AM
01/21/15 10:34 AM
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outdoorobsession
Unregistered
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outdoorobsession
Unregistered
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235492
01/21/15 10:42 AM
01/21/15 10:42 AM
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Joined: Dec 2002
Posts: 12,663
Kennedy, al
globe
Booner
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Booner
Joined: Dec 2002
Posts: 12,663
Kennedy, al
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100,000 timber value on your 600 is WAY low. What's on it? Just curious. I enjoy these what-if scenarios.
Everything woke turns to shit
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Re: Land purchase question
[Re: Rebelman]
#1235508
01/21/15 10:51 AM
01/21/15 10:51 AM
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Joined: Jan 2009
Posts: 7,780
central ala,
centralala
14 point
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14 point
Joined: Jan 2009
Posts: 7,780
central ala,
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Lets just rough run this scenario out and say the goal is to be debt free by EoY 2020. *Since you said you have enough money to pay of existing debt I'm excluding it for now. Harvest said timber on existing owned land ---- $100K Regeneration cost ($10K) Leaving you $90K Purchase Price of new property $200K Down Payment of 20% - $40K Leaving you $50K in Cash and ($160K) in Debt Finance for 20 years makes payments $959/month. (6% interest) Place the $50K Cash in an account and set up auto pay of $959 monthly. Begin depositing $500/ month in said account. Future Timber value of new land @ age 13 (5 years) is $84K. Use Timber income to pay $84K on loan in Feb of 2020 Remainder of loan will be paid off on December of 2020. So if you can make $500/month payments for the next 5 years then, really it is a no brainer if you are wanting to grow your land portfolio. *Disclaimer* I am not an accountant. Do your own math and make your own decisions. I'm not an accountant either but I know you left off paying taxes on that timber harvest. I tried to do a "like kind exchange" or what ever its called on timber for land and was told I couldn't.
Last edited by centralala; 01/21/15 10:55 AM.
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Re: Land purchase question
[Re: Rebelman]
#1235515
01/21/15 10:55 AM
01/21/15 10:55 AM
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Joined: Jan 2009
Posts: 1,179
NW AL
Daggerz
6 point
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6 point
Joined: Jan 2009
Posts: 1,179
NW AL
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If ya'll had the chance to purchase 200 acres adjoining the 600 you already own for 1000$ per acre would you do it?
existing debt-30k
timber value on property i already own-100k
yearly income-ballpark 75k before taxes
Hell yes. Why would you NOT buy it? Well said...
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Re: Land purchase question
[Re: Daggerz]
#1235569
01/21/15 11:29 AM
01/21/15 11:29 AM
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Joined: Nov 2013
Posts: 2,057
Alabama Wetumpka
Talltines
on probation
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on probation
Joined: Nov 2013
Posts: 2,057
Alabama Wetumpka
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If ya'll had the chance to purchase 200 acres adjoining the 600 you already own for 1000$ per acre would you do it?
existing debt-30k
timber value on property i already own-100k
yearly income-ballpark 75k before taxes
Hell yes. Why would you NOT buy it? Well said... Do it. If you own your own home and everything else other than that car, you are way ahead of everyone else. Buying this land would basically be buying another house that has more potential for you down the road.
Hunting Is my Obsession, My Passion, My Everything, Oh so is my wife.
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235576
01/21/15 11:31 AM
01/21/15 11:31 AM
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Joined: Dec 2002
Posts: 12,663
Kennedy, al
globe
Booner
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Booner
Joined: Dec 2002
Posts: 12,663
Kennedy, al
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When you buy land you get a basis (cost of land + improvements). Whatever the timber is worth has a separate basis from the raw land. Do not cut any timber after buying until you get an appraisal/cruise in writing to establish your basis.
Everything woke turns to shit
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235617
01/21/15 11:58 AM
01/21/15 11:58 AM
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Joined: Feb 2008
Posts: 17,282
Montgomery
bamaeyedoc
Old Mossy Horns
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Old Mossy Horns
Joined: Feb 2008
Posts: 17,282
Montgomery
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If ur managing ur money well enough to retire note on 600 acres, I'd do it. In 10-12 years or less u could own 800 acres free and clear and that's pretty darn good!
Dr. B
AKA: “Dr. B”
Aldeer #121
8-3-2000
Proud alum of AUM, UAB, and UA
2023-2024 ALdeer Deer Contest Winners
2024-2025 Aldeer Deer Contest Winners
Glennis Jerome "Jerry" Harris
1938-2017
UGA Class of 1960
BS/MS Forestry
LTJG, USNR
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Re: Land purchase question
[Re: CLAUDEHENRYSMOOT]
#1235856
01/21/15 03:12 PM
01/21/15 03:12 PM
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Joined: Jan 2009
Posts: 7,780
central ala,
centralala
14 point
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14 point
Joined: Jan 2009
Posts: 7,780
central ala,
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Don't mean to sound like a know nothing but why determine a basis on purchased property?
To know the timber value at purchase vs. sale. This is the way I understand it: Timber value at purchase - $50,000 Timber value at cutting - $75,000 You pay taxes on $25,000
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