From time to time, we hear from individuals and investors who want to find “cheap” farmland in Alberta, or to buy agricultural real estate at rock-bottom prices. But, are those kinds of properties really available on the market… and do you really want to spend your hard-earned money on them?
In general, we would have to say that the best answer is usually “no.” To understand why, here are a few important things to consider about some of the Alberta farmland that’s for sale:
Like everything in life, you get what you pay for. If a property is heavily discounted, you can bet there is likely to be a very good reason why.
Working farms have ongoing value. A working, productive farm is a valuable asset. So, if a farm is in good shape, expect that it’s going to draw interest from other buyers.
It’s extremely expensive to put more land back into better production. Some people think they can buy a low-producing farm and turn it back around quickly, but the input costs are usually very prohibitive.
There are many factors to consider when valuing farmland. Not only is location important, but things like soil quality, easements, and even taxes all have to be taken into account.
In general, buying cheap tends to backfire. Just as you might expect, spending less than market value now usually means paying more later, or at least getting less than you expected in return.
The Alberta agricultural real estate market is like any other, meaning there are likely to be some bargains out there if you know what you’re looking for. In general, though, a search for “cheap Alberta farmland” isn’t likely to turn up the kind of property you are really looking for.
Want to learn more about buying and selling farms in Alberta? Call the Mertz Team today for a free consultation.
By Fred Mertz Join me on Google+