Expert: Dottie Worthington - 12/5/2008

Question
My wife and I are interested in buying land here in Texas for Two reasons,
one is for me to possibly hunt or put cattle on it, reason number two is for
investment purposes. We are wondering if we have to put any money down? Is
every property different on terms of up front down payment? Can you have a
fixed interest rate? Is it 15 year or 30 year notes or what? Is CRP money taxed
before payments or do you have to take care of that at the end of every year?
Does CRP contracts convey to new owners?

Answer
Land is always a good investment. Whether you put money down depends on your ability to borrow and your personal preference. Also the 15 or 30 years. If you are selling something the best tax advantage is a 1031 exchange, to avoid paying any taxes. I am not familiar with a CRP contract.