Investments strategy with new administration?

[part-time-Farmer-NC]

Just an idea.

You can invest in land... As a business. You create a business farm related, of course you need that farm to generate income from the business. It then becomes an expense. Business expenses are deductible as are the equipment needed to operate the farm including mileage, fuel/taxes/insurance, repairs its a long list.

Also the FDA (I think that's the branch) use to have special programs for new farmers, grants & low interest loans. That may make sense for you. You can research it through your agriculture agency.

Even a home or percentage of it can be expensed. Office space, internet anything that is tied to the business essentially.

You do have to buy it up front and work out the math on that, but it is a business investment.

 

[D&D]

I do not get a feeling real estate prices are going to drop anytime soon...or mortage rates for that matter either. I think 3 percent mortgages were an anomaly.
Another farm up the road went to a developer. Looks like over 100 new homes on what was a very hilly property. I find it interesting on what they build on now...around here. And then the names of the development calls out to the past.
All the development increases tax pressures on existing homeowners. My county struggles with planning and tax strategy. Too much developer influence.

The I-66 corridor is pretty full. Going north on I-81 from I-64 stinks. I-95/I-495/I-395 in No. Va is the absolute pits. Every time I think, “they gotta be running out of buyers”, every time I’m wrong

 

[riptides]

I'm still building on it, but that's because we keep changing our minds and adding on to it.

LOL. We relate. We were in downsize house....up the land mode when we bought a long while ago. At the height of the last hosing (sp) market...lol. Anyway we just finished another project on the property which can be used as an in-law suite or retirement home for us.
The big deal now is who ends up where...but at least it is on the same property. It is all about options and forward thinking.
And I hope to be done with renovations. LOL. Right......

 

[riptides]

Just an idea.

You can invest in land... As a business. You create a business farm related, of course you need that farm to generate income from the business. It then becomes an expense. Business expenses are deductible as are the equipment needed to operate the farm including mileage, fuel/taxes/insurance, repairs its a long list.

Also the FDA (I think that's the branch) use to have special programs for new farmers, grants & low interest loans. That may make sense for you. You can research it through your agriculture agency.

Even a home or percentage of it can be expensed. Office space, internet anything that is tied to the business essentially.

You do have to buy it up front and work out the math on that, but it is a business investment.

Look into what classifies as a farm locally (business). Is a good idea but in some areas not an option. Zoning and other considerations (regulations).

 

[2diamondfarm]

My remaining 2 kids are pretty close to flight from the nest, but they have asked us about buying a farm and all of us living on same parcel in separate homes.
It’s fun to think about. Especially if the property taxes on a farm are lower, then splitting the bill 3 ways.

Is this legal in your state ?
It would never fly in Michigan, in my area each homestead has to have 5 acres min, and 330 feet of road frontage

 

[part-time-Farmer-NC]

Here its 5+ acres for Horticulture, 10+ for ag 20+ for timber. That doesn't count housing, that would be an additional allotment. My property taxes exclude the house from the farm(s) as well.

 

[MossRoad]

When the second factory I worked at closed all the supervisors from two shifts were talking and I was surprised that I was the only one that didn't owe on my house. I was 56 and some of them were in their mid 60's. They all seemed shocked that my house had been paid off for ten years. And yes, it made sleeping at night a lot easier when I made the final payment.

RSKY

The strange thing about this area is homes are very affordable. So much so, that you can buy them a lot cheaper than building them. For example, our home is insured for total rebuild cost. Its market value is only 2/3 of rebuild cost.

 

[MossRoad]

When I bought my land, I financed it for 15 years and paid it off in five. I built my house for cash so I wouldn't have a mortgage. It's been almost 20 years, and I'm still building on it, but that's because we keep changing our minds and adding on to it.

In 2010 my parents sold their house in CA and I started building their house behind mine. We share the same power and water meters. It took a year to build it, and nothing else got done on the land, but once it was done, they became a huge asset to the land. Mom loves to garden and keep the areas around the houses neat and clean. Dad enjoys being out on the backhoe, taking out trees and cutting firewood. They do what they want, when they want, and overall, it's been a very good fit. My wife and I call their house "the store next door" because whenever we need something while making dinner, we know that mom has it in her pantry!!! Dad passed away last year, and the last two years of his life he had dementia. It got pretty bad in the end, but fortunately we were able to keep him at home until the end, when he passed away in his own bed. Now we keep an eye on mom, but she's doing good and keeping busy with her church lady friends. She still works in the gardens almost every day, and her pantry is always full.

If you can, it's a very good way to help your parents when they get older. I'm very fortunate how it's all worked out.

When my father's parents got into their 80's and 90's they sold all their rental properties, cottage, and my father built a house for them right next door on a lot he had saved for them when he developed the neighborhood 30 years earlier. Having them right next door was great for them, my parents, and my siblings and me. My grandpa was 91 when he bought his 1st newly built home. Paid in cash.

He passed away a few years later, but my grandma lived another 17 years and passed away at age 98. She kept her trailer in Florida and spent winters there with friends and families for 16 of those years.

We are also very close to my mother in-law. She picks my wife up for church every Saturday night and comes over and eats with us afterwards. We go over there at least once a week as well. It was great for our kids to get to know their grandparents and spend so much time with them.

 

[MossRoad]

Is this legal in your state ?
It would never fly in Michigan, in my area each homestead has to have 5 acres min, and 330 feet of road frontage

Here it's 20 acres minimum with 600' road frontage for house on ag land.

 

[MossRoad]

Here it's 20 acres minimum with 600' road frontage for house on ag land.

Forgot, we were able to get zoning exemption to put house on 19.5+- acres. It was a pain, but worth it.