Are tractors and equipment a good investment right now?

[Deleted member 371759]

A tractor in itself is not a investment. It can be a investment in your farm. Just like any other piece of equipment. Machine shops don't buy a new CNC machine as a investment in the machine but as a investment in their business. Its a great time to invest in a tractor if your farm will benefit. If you dont have land or a regular need and can organize the jobs that need to be done you would be way better off renting a tractor for a few days and knocking the jobs out. If you have to rent a tractor 5 times a year you would come out ahead.

 

[5030]

I actually have very good renters, they pay on time and don't give me any grief either. I actually have a contractor that does necessary repairs and it's all a write off. Wasn't always so nice however, went through some dead beat renters that trashed the houses when they left and you better believe I prosecuted them too,
I keep an attorney on retainer just for that and he loves to do it too. He also drew up my air tight leases as well. The last deadbeat that trashed one of the houses to the tune of 15 grand, I got my money out of them plus attorney fees and court costs. Took me 2 years of wage garnishments but I got it.

I believe in giving people a break but don't 'break' it off in my butt because I'm coming and I don't quit either.

 

[5030]

A tractor in itself is not a investment. It can be a investment in your farm. Just like any other piece of equipment. Machine shops don't buy a new CNC machine as a investment in the machine but as a investment in their business. Its a great time to invest in a tractor if your farm will benefit. If you dont have land or a regular need and can organize the jobs that need to be done you would be way better off renting a tractor for a few days and knocking the jobs out. If you have to rent a tractor 5 times a year you would come out ahead.

I agree 100%. In my case, all my tractors and implements are for work. If I was a suburban rat, I'd never, NEVER own any tractor, it's a bad investment. Might as well toss the money down the toilet instead.

IMO. anyone who buys a small tractor with no intended business use, is nucking futz. I will say my Kubota dealer sells a bunch of them and they just sit in a garage or barn doing nothing. Interestingly, they all have to have a backhoe too, another totally useless accessory. if you need one, go to Herc Rental or Black Swamp and rent a real backhoe, not some wannabe digger that costs 5 or 6 grand.

 

[Yander]

I agree 100%. In my case, all my tractors and implements are for work. If I was a suburban rat, I'd never, NEVER own any tractor, it's a bad investment. Might as well toss the money down the toilet instead.

IMO. anyone who buys a small tractor with no intended business use, is nucking futz. I will say my Kubota dealer sells a bunch of them and they just sit in a garage or barn doing nothing. Interestingly, they all have to have a backhoe too, another totally useless accessory. if you need one, go to Herc Rental or Black Swamp and rent a real backhoe, not some wannabe digger that costs 5 or 6 grand.

See, I feel this way about Ford Escort RS's . I can't imagine spending my money on something like that. I could say the same of motorcycle's, RV and high dollar pickup trucks. I don't need/want any of those and I see people spend $60k on a truck to drive to an office job and I'm like what the heck?

My tractor is my hobby but also very, very useful. I would have to rent the tractor along with the 8 or 9 implements I own to use with it. I kind of agree on the Backhoe for a small tractor but everyone's situation is different so I can speak to that either.

I personally think anyone that has the financial means, the land and the desire to have a tractor, is crazy not to have one. They are the most solid investment there is when it comes to utility and resale value.

 

[Yander]

A tractor in itself is not a investment. It can be a investment in your farm. Just like any other piece of equipment. Machine shops don't buy a new CNC machine as a investment in the machine but as a investment in their business. Its a great time to invest in a tractor if your farm will benefit. If you dont have land or a regular need and can organize the jobs that need to be done you would be way better off renting a tractor for a few days and knocking the jobs out. If you have to rent a tractor 5 times a year you would come out ahead.

Really, you don't think a machine shop thinks of a CNC machine as an investment? That's like telling a farmer that a tractor isn't an investment.

Also, you do not have to be a business owner for it to be an investment.

Investment: How and Where to Invest

An investment is an asset, such as a stock or property, purchased to generate income or appreciate in value.

www.investopedia.com

 

[Deleted member 371759]

Really, you don't think a machine shop thinks of a CNC machine as an investment? That's like telling a farmer that a tractor isn't an investment.

Also, you do not have to be a business owner for it to be an investment.

Investment: How and Where to Invest

An investment is an asset, such as a stock or property, purchased to generate income or appreciate in value.

www.investopedia.com

The machine its self is not an investment. It is a investment in their company. If that machine sits idle all its doing is depreciating. My point pretty much was a tractor is never an investment in itself. Just like a truck in itself is never a investment. Unless that truck is hauling and making money all its doing is depreciating.

 

[Yander]

The machine its self is not an investment. It is a investment in their company. If that machine sits idle all its doing is depreciating. My point pretty much was a tractor is never an investment in itself. Just like a truck in itself is never a investment. Unless that truck is hauling and making money all its doing is depreciating.

Any asset you purchase is an investment. Now, it may not be a good investment. If it appreciates in value or generates revenue and depending on the amount of appreciation, it can be a good investment.

My original question wasn't if a tractor was an investment, I already know it is.

 

[Deleted member 371759]

Any asset you purchase is an investment. Now, it may not be a good investment. If it appreciates in value or generates revenue and depending on the amount of appreciation, it can be a good investment.

My original question wasn't if a tractor was an investment, I already know it is.

I mean the basic definition of a investment is buying something to make money or something that will appreciate over time. If your tractor does neither of those its not a investment by definition. It may be helpful or maybe almost a necessity to live in some places, no different than a well pump but its not a investment anymore than any other tool, or necessity, even less in some cases. I could argue that basic hand tools are a investment if it saves you more than their purchase price vs a mechanic. If your need for a tractor will work out actually saving you money in the long run I guess that could be seen as a investment.

 

[ultrarunner]

I actually have very good renters, they pay on time and don't give me any grief either. I actually have a contractor that does necessary repairs and it's all a write off. Wasn't always so nice however, went through some dead beat renters that trashed the houses when they left and you better believe I prosecuted them too,
I keep an attorney on retainer just for that and he loves to do it too. He also drew up my air tight leases as well. The last deadbeat that trashed one of the houses to the tune of 15 grand, I got my money out of them plus attorney fees and court costs. Took me 2 years of wage garnishments but I got it.

I believe in giving people a break but don't 'break' it off in my butt because I'm coming and I don't quit either.

How did you handle the eviction moratorium?

It was here 3 years and just ended… non payment of rent not grounds to evict and it still isn’t as by law any pandemic rent now had 22 months to catch up…

I can deal with repairs, screening, etc… but the ever increasing burden of regulations simply leaves my hands tied.

 

[5030]

Candidly, never been an issue but then I do discriminate. Quietly however.