Types of Property Ownership

Most Common is Joint Tenancy

The number one form of land ownership we see is called joint tenancy.  Joint tenancy is where all co-owners are equal.  There is a right to survivorship which means one of the co-owners passes away his or her share would then be passed on to the remaining co-owners.  This is common with married couples.  This does not go through probate when one owner dies.  And it does not pass according to a will.

Possible Issues

When the co-owners both die the descendant's ownership disappears.  It passes free of unsecured creditors.  There can be a problem if there are marriage difficulties or there are children for a previous marriage.  Also, it will not be included in the descendant's estate, therefore it cannot have an exemption made against it.

Farmland is a Better Investment

Farm Vs. Residential or Commercial

Some of you may be thinking, "This is all good information but I already have plenty of investments in commercial or residential.  What makes farmland a better investment?"  Let me break that down for you.

What are the down sides to investing in residential or commercial properties?  

Renters usually downgrade the property.  The property requires cash maintenance.  They are physical structures so they will decline in value.  Property taxes can be expensive.  You need liability insurance and that can be expensive.  And you have to collect monthly checks and that can be chore.  Who wants to do all that?

What makes farmland better?  

Renters will improve the property.  The farmers have a stake in the lands future.  The farmer will improve the property.  Land always rises in price thus it will physically improve over time.  Agriculture property taxes are low by law.  Liability insurance is very low too.  Finally, rent is collected once or twice a year.  No badgering and hunting down renters once a month.