Trading idea stems from two things. One, we will not take on additional debt, period. And two, holding cash is very undesirable now because hyperinflation is inevitable and very close. If we sold the land quickly (which would require an extremely low price in today's market...."dump it"), but then couldn't buy a boat we want for same net money, we would be in a pickle...paid commission and taxes only to end up holding cash, which will earn almost no interest and in worst possible position with hyperinflation coming... Treasury is already just printing money and must continue.
It's a classic chicken and egg problem made worse when one (buyer or seller) cannot count on selling WHEN they want to at a fairly predictable price. This is partially why the real estate (and boat) markets are in a mess right now. But we are not the only ones in a potential pickle, boat owners are watching boats just sit and suck money every month, sometimes taking years to sell unless they just "dump it". Over 100 boats are coming out of Moorings fleets alone in June.
The 160 acres (quarter section) is agricultural/development land in Bennett, a Denver bedroom community on I-70 to the east. A farmer (cousin) is farming it now on shares, but best price will eventually be selling off in minimum 35 acre parcels and maybe even offering to owner carry for the extra income; there are several homes already built surrounding it; someone else offering a 35 acre parcel now for about $80K, which is much less than they used to sell for. When we eventually sell this investment, we will do it in a favorable market and offer owner carry financing to both mitigate taxes and get a better price. It's paid for and produces some income and we are not willing to "dump it" for something we "want" rather than "need".
Should I post land details here?
But we ARE selling our house, since we want to live on the boat. Higher end homes are moving slowly, we expect it will take a year or more so offering to trade land to go cruising whether house is sold or not. House is in Montrose, CO, on the western side of the Rockies and near Telluride and Ouray. Absolutely a great area, but small markets. After house sold, we are willing to finance a boat if needed.....no house loan so would be a wash. Actually, tax wise, we would need the deduction. Here is the link to our visual tour and Zillow listing...take a look...maybe you or someone you know wants a beautiful custom home for less than the replacement cost? We would trade our equity in this house for boat also, but that's even more of a long shot.
Interactive Properties ListingZoom # 57059
2048 Brook Way, Montrose, CO 81401 - Zillow
In summary, we want to go cruising NOW so are trying to turn one asset (land) into another one (boat) rather than have to wait for home to sell. It's a win/win...Boat Owner would be turning an unwanted/unused depreciating high maintenance asset (Boat) into a income-producing $400/year taxes only maintenance asset (land). If Boat Owners have a mortgage, they would have to be able to pay it off. Value of land down to about $2k/acre ($320K), but nothing is selling right now since no financing available. Land will begin appreciating again someday....boat won't and every month they have more $$ in it.
We know it's a long shot. We have plan B: we keep our land, wait for house to eventually sell (or not) but for now do more chartering because that's getting less expensive....