Archive for the ‘Acre Price’ Category

Understanding Wyoming Land Prices

The State of Wyoming has a huge amount of checkerboard land ownership; therefore to understand Wyoming land prices, it’s important to understand checkerboard land ownership.

President Abraham Lincoln created checkerboard land ownership in 1862, when he signed into law the Pacific Railroad Act. The purpose of this legislation was to expand the railroads from the center of the nation all the way to the Pacific Coast. To facilitate the building of the railroads, the U.S. government gave every alternate section of land, up to 20 miles on either side of the railroad tracks, to the railroad companies. So for every township (a township contains 36 sections of land), the federal government kept 18 sections and gave the other 18 sections to the railroads.

Now, the interesting part of this checkerboard arrangement is the fact that it’s impossible to cross a township without crossing both federal lands and private lands (since they are intermingled throughout the township). To this mix, add legal precedents stating, “The public can’t cross private lands to access federal lands, but private landowners can cross federal lands to access their private lands.”

When the above is fully understood, it becomes clear that there are millions of public acres  in the checkerboard area that can’t be visited, accessed, or enjoyed by the public (in essence, the taxpaying citizens of America). But, amazing as it may seem, the adjoining private owners have every right to cross and access these publicly owned lands en route to their private lands.

Up until now, at least, the private lands in the checkerboard have been valued at less money than private lands outside the checkerboard. But assuming the land isn’t going to be used for residential purposes (it is almost impossible to get building permits in the checkerboard area), what other restrictions apply to checkerboard lands? The answer is almost none!

While Wyoming land prices in the checkerboard area can be as low as $199 per acre (if you know where to look), the land can be used for the same purposes—hunting, camping, horseback riding, rights-of-way for pipelines, cell tower leases, and recreation—that $750-per- acre land is used for. In summary, there is no greater value in Wyoming land prices than those associated with large tracts of private land in the checkerboard area.

To view Wyoming land prices in the checkerboard, please click here.

How to Make Wise Acreage Investments

With economic uncertainty, it becomes harder each day to find an investment that is not only safe, but also provides a suitable return on your money. While others look to bonds or gold,  knowledgeable individuals turn their attention toward acreage investments.

Investing in land makes perfect sense. With the population growing at an ever-increasing rate, the demand for land will only grow greater as time passes. What’s more, land is a finite resource. While we can always discover and mine more gold or drill for more oil, we cannot find more land. So while it’s possible that the price of gold may go down as a result of new discoveries, or that the price of oil might plummet from the use of alternative fuels for transportation, land can be counted on to retain its value.

When buying land, it is not the location that makes the difference; rather, it is the per-acre price that is important. Two investments may look the same, each costing $25,000, but one is for 80 acres and the other is for five acres. If you look closely at the two different options, it becomes plain which is the better investment. The 80 acres are valued at $312.50 per acre, while the five acres are valued at $5,000 per acre. The goal of any person investing is to buy low and sell high. The savvy investor will always go for the 80 acres at the lower per-acre price.

Acreage investments have never been easier, and the Internet has made it exceedingly simply to find and compare countless offerings—in the search for the lowest per-acre deals available!

To view some excellent acreage investments, please click here.

Value of Land Per Acre Today

It is quite interesting to see how the value of land per acre today, in the spring of 2014, stacks up with other prices. We are referring to the lowest priced land in the nation, land that can be purchased for around $400 per acre. A quick review of this topic reveals some interesting comparisons and helps focus on the issue of relativity.

First, how have we arrived at the value of land per acre being $400? Let’s take just one small example. Forty-acres in Wyoming might be priced at $16,000—which calculates to $400 per acre. But a person would have to purchase the entire 40 acres in order to realize the $400 per acre price. In other words, a person couldn’t just elect to have one acre carved out of the 40 acres. So the following analogies would apply if 40 people formed a syndicate and purchased the 40 acres (where, in effect, each person would then own an undivided interest in one acre of land).

Let’s start with the price of gold, which currently is a little over $1,600 per ounce. As opposed to an ounce of gold, wouldn’t you rather own four acres of land (that measures over 400 feet by 400 feet)?

A fancy briefcase can easily cost $400. But wouldn’t you prefer to own an acre of land for $400 instead of the briefcase?

A pair of men’s shoes can cost $400. But wouldn’t you rather own an acre of land for $400 instead of the shoes?

A fine dinner and a couple bottles of wine for four people can easily cost $400. Wouldn’t you rather own an acre of land for $400 instead of the meal?

I don’t know what the price of gold will be in 10 years (but prices could be subject to some form of government controls), but I do know that in 10 years the briefcase and the men’s shoes will probably be worn out and thrown away. I also know that in 10 years the fine dinner will have long since been forgotten. Finally, I know that the value of land per acre, which is $400 today, will be substantially higher 10 years in the future!

Click here to see properties offered with a great value of land per acre.

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Cheap Country Land, Where to Find it!

The Civil War ended in 1865, and soon thereafter, the great westward expansion began. Thousands of people headed west seeking cheap country land to settle and the chance to start new lives. These people planned on farming, grazing cattle, harvesting timber, mining for gold and silver, building railroads, starting businesses and constructing towns—all of which required large tracts of low-priced land.

During this migration westward, into an untamed and unforgiving wilderness, a code of conduct began to emerge. The code dictated that a person should “carry a firearm for protection, offer assistance when needed, mind his own business, and acquire cheap country land.”

The Homestead Act of 1862 made it relatively easy to acquire land in the Western United States. A person who was 21 years of age or older and had never taken up arms against the U. S. government could claim 160 acres, located west of the Mississippi River, from the federal government for $1.25 per acre. The claimant had to improve the land and live on it for five years. The $200 purchase price could be paid with a small down payment and the balance could be paid over time.

More desirable land, priced from $2 to $10 per acre, also could be acquired from railroads, land speculators or the states.

The Timber Culture Act, passed in 1873, made additional land available. Under this act, homesteaders could acquire another 160 acres if they planted trees on one-fourth of the land. Any potential settler, including foreign immigrants, could claim land under this act.

The Desert Land Act of 1877 provided 640 acres to a husband and wife who agreed to irrigate the land within three years. The cost of the 640 acres was $1.25 per acre.

In 1878, when the Timber and Stone Act passed, even more land became available. This act provided that federal lands “not suitable” for farming, could be acquired for timber and mining operations. The cost was $2.50 per acre for 160-acre tracts.

In summary, during the last half of the 19th Century, millions and millions of acres of cheap country land were transferred from the federal government to private ownership.

To view properties for sale, CLICK HERE

Where do you find the Cheapest Land for Sale in America

There has been cheap land for sale in America since the Pilgrims landed at Plymouth Rock in 1620. The big variable, of course, is that the word “cheap” meant different prices at different stages in America’s history. The constant factor, however, was that what seemed like a cheap land price in one period in time ALWAYS became substantially higher at a future point in time.

Let’s take a short walk down memory lane regarding some land sales transactions and prices.

  • In 1626 Peter Minuit purchased Manhattan Island from the Indians for $24. There are 23 square miles in Manhattan or a little less than 15,000 acres. Thus the price amounted to approximately 2/10th of one cent per acre.
  • In 1803, President Thomas Jefferson paid Napoleon Bonaparte $15 million for more than 500 million acres of land constituting the Louisiana Purchase. The price was approximately three cents per acre.
  • In 1853, The United States acquired from Mexico almost 19 million acres in southern Arizona, known as the Gadsden Purchase. The price was $10 million, or a little over 50 cents per acre.
  • During the last half of the 19th Century, the railroads were promoting and marketing millions acres of land in the Western states for $1.25 to $2.50 per acre.
  • In the first half of the 20th Century, ranchers, settler, and speculators purchased millions of acres in the Western states for prices ranging from $5 to $25 per acre.
  • In the second half of the 20th Century, some of the same land acquired for $5 to $25 per acre was resold for $25 to $250 per acre.
  • Today, in the first few years of the 21st Century, it is becoming more and more difficult to find tracts of unimproved acreage anywhere in the United States for much less than $500 per acre.

To view some cheap land for sale in America, please click here.

Where to find Cheap Rural Land for Sale

The most expensive land for sale in the United States is situated in the downtown sections of the larger cities and the least expensive land is located in the outlying rural portions of the nation. The best deals regarding cheap rural land for sale anywhere in the United States of America will be found in the larger Western states: Texas, Wyoming, South Dakota, New Mexico and Nevada. In the remote rural areas of these states land can still be found for prices under $500 per acre.

The advantage of finding cheap rural land for sale is that purchase prices will generally be very reasonable and easy seller financing is usually available. Of the various investments available to people today – rental properties, commercial buildings, business franchises, oil drilling partnerships, commodities, bonds and stocks – cheap rural land is the easiest to acquire, the easiest to maintain and in 25 years from now is the most certain of all the other assets to still be here and to be worth more money than it is today.

Cheap rural land is a finite asset, meaning there are only so many acres available in the United States and there is no way to manufacture more land. The United States of America contains 2.4 billion acres of land and 100 years ago, in the year 1910, the population was 92 million people. That equated to 26 acres per person. Today there are still 2.4 billion acres of land in the United States and the population is 307 million. This now equates to only a little over 7.5 acres per person. Thus is there any doubt but that cheap rural land for sale today will become much more valuable in future years?

As evidence of this inevitable price increase consider that in 1990 cheap rural land in parts of Texas, Wyoming or South Dakota could have been purchased for $50 per acre or less. Today some of that same land is now priced at closer to $500 per acre, an increase of 10 times the 1990 price.

How did the stock market perform over this same period? In 1990 the Dow Jones was 2900 and today it is around 11,000, an increase of approximately 4 times the 1990 price. What about the value of cash over the same period of time? According to the U. S. Bureau of Labor Statistics it takes $167 today to buy the same goods and services that $100 purchased back in 1990. In other words inflation robbed the dollar of 40% of its purchasing power is just 20 years time.

Finding cheap rural land for sale and purchasing under beneficial terms might well be one of the surest and safest methods of building wealth in future years. History has taught us that it is virtually impossible to lose money owning large tracts of rural land if purchased cheap enough and held long enough.

To view cheap rural land for sale CLICK HERE

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How is the Price Per Acre Caculated?

Most of the United States is surveyed into townships that comprise 36 sections of land and measure six miles by six miles. Each section contains 640 acres of land. There are 23,040 acres of land in a township. The overwhelming majority of townships are located in rural areas, and when buying and selling such properties, the monetary unit most generally used is the price per acre.

Conversely, commercial and residential properties in urban areas are generally sold on a square foot basis. If a real estate broker were selling a one-acre commercial property in a large city, he would most likely quote the price as being $10 per square foot—instead of $435,600 per acre (there are 43,560 square feet in an acre, times $10 per square foot).

However, when dealing with rural properties it isn’t practical to quote land prices on the basis of square footage. Imagine the burden of a rancher trying to sell his 3,000 acres to another rancher by quoting a price of one penny per square foot (one penny per square foot translates into a price of $435/acre). Wouldn’t the rancher find it much easier and less confusing to simply state that his ranch is for sale at a price per acre of $435?

Rural banks, country real estate brokers, ranchers, farm credit bureaus, escrow companies, and sellers and buyers all use the acre as the monetary unit for rural acreage prices. Unfortunately, there still can be some subtle deception involved when some real estate brokers insist on listing a sales price and then quoting total acres involved (without separating leased land from deeded land). In other words, a sales price of $1 million might be shown along with a total of 2,500 acres. It would therefore be reasonable to assume that the price per acre was $400 ($1 million divided by 2,500 acres). But upon further investigation, it is revealed that the 2,500 acres includes 2,000 acres leased from the BLM, leaving only 500 deeded acres—drastically changing the price per acre to $2,000!

Click here to view land that you can buy for a cheap price per acre.

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