West Central Iowa | FlyinIL22 - 5/5/2024 16:39
What's the end result for land values if we have a major economic crisis? Land is an inflation hedge. But if there is hyperinflation I don't see how land prices would keep up if land buyers have high interest rates on loans. Will investors/REITs be active in buying land after stock market major selloff and treasuries/CDs paying double digits?
What would cause land prices to fall off the cliff?
I'm getting worried.
I believe farmland is a hedge against inflation, land in general is too, but people will spend money on food before anything else.
Why do farmland prices need to keep up with inflation, as long as they aren’t deflating it should be fine. There is a lot of old money holding farmland. I don’t see the 80’s repeating.
I would tell you to look at Argentina if you want to see how hyperinflation might play out, the farmers had a very unfortunately timed drought last year that you will want to remember before drawing conclusions.
As far as land prices falling off a cliff; I would say a massive volcanic eruption in the wrong place (like Yellowstone), a big war, an asteroid hitting earth, a population decline event.
I wouldn’t worry. |
land values if/when America economy defaults/crisis
