#240 - What Happens To Land Prices If The 2030s Bring A Great Depression? with Connor Lokar
Welcome to the land podcast, a platform for people looking to educate themselves in the world of land ownership, land investing, staying up to date with current land trends in the Midwest, and hearing from industry experts and professionals. On today's episode, we are back in the studio with Connor Lokar. We discuss: - Connor sizes up the economy as "three yards and a cloud of dust," with industrial production at a 4.5-year high. - Connor explains why new homes, autos, and boats and RVs are struggling with rates and a glut of used COVID inventory. - Connor expects to see a mortgage rate starting with an 8 or 9 before one that starts with a 4 or 5. - Connor explains why a Fed rate cut can lower prime for land loans while mortgage rates climb with the 10-year. - Connor blames government debt and money printing for what land, mortgages and credit cards cost today. - Connor tells younger buyers that cash beyond three months of expenses "should be poison" with inflation where it is. - Connor recommends a one-to-two-year farm emergency fund and agreeing on an exit line with your spouse ahead of time. - Connor says carrying land debt is fine, but not stacked on an 84-month truck loan and a home equity line. - Connor lays out ITR's call for a five-year "great depression" from about 2030 to 2035, with stocks down 40-45%. - Connor explains how data centers turned a client's $40 million warehouse into a $60 million one in 24 months. And so much more! Chapters: 0:00 An economist's odds on a 2030s Great Depression 0:53 How's the economy right now? 3:03 Where the economy is weak: housing, autos, boats and RVs 8:59 Where interest rates are headed next 13:43 Prime vs. mortgage rates, explained 21:15 Is now a good time to buy land? 29:42 The farm economy and future land supply 35:13 What could trigger a big drop in land values 38:20 Farm emergency funds and land as an inflation hedge 43:36 Carrying debt on land, and the '80s farm crisis 49:05 ITR's forecast for a 2030s Great Depression 55:00 Data centers and the cost of building 1:00:30 How likely is it, and where to follow Connor Thanks again for all of the support from our partners—none of this would've been possible without them! - Buck Land Funding: https://www.firstbankers.com/bucklandfunding -Hawke Optics | Use Code WHTL for 15% off: https://bit.ly/hawkeoptics_ -OnX: https://bit.ly/onX_Hunt -Painted Arrow: bit.ly/PaintedArrow - Latitude Outdoors: https://www.latitudeoutdoors.com/ - Use code 'HOFER' to save 10% off at www.theprairiefarm.com - Massive potential tax savings: ASMLABS.Net





