My mom bought farmland for $605k last year
She lost her job a few months later and can no longer afford to pay the monthly payments
Monthly payments are roughly $3,300 but once a year there is a income of ~$20k from the property so on average the monthly payments are around $1633 if you adjust for earned income (I would still be paying $3300 out of pocket monthly though).
Taxes are cheap and only about $1k per year
I earn enough money to afford the monthly payments but I have some significant expenses myself as I bought a house less than 2 years ago
My mortgage monthly is $5k The new property would be $3.3k
My income post taxes is roughly $13.5k per month
The property is probably still worth about the same or may be slightly increased to $625k from the original $605k price tag
There is still ~$450k loan as my mom paid ~$150k down and another $20k for closing costs
My mom wants me to take ownership of the property and she doesn't expect me to pay her back anything and just wants to sign the property under my name so she doesn't have to make the monthly payments. I guess it's a good deal for me since I can sell the property and still make some profit or make the monthly payments and potentially make a bigger profit in the future
The question is, would I be better off making those monthly $3.3k payments into some other investment rather than this farmland. Some of it is going to interest anyway and I'm not sure how much appreciation farmland will have over the next year, 5 years, 10 years etc.
I'm looking for some guidance on if this would be a good investment. I have a full portfolio of investments already such as ETFs, individual stocks, MMF, HYSA, CDs, T bills etc
Is this worth the investment or should I just put the money in one of the above?
Submitted August 11, 2023 at 02:17AM by skurred666666 https://ift.tt/jsL1eIi
