To buy or not to buy.

[desimulacra]

 The economy is dropping like a stone thrown from a bridge. I got caught with my britches down and I am slightly overextended. However I have a chance to sell some commercial property for .75 cents on the dollar. So I can come up with some cash.
I lurk on this forum much more than I post and from the posts here it seems like I have found the deal of the decade.
I have found 100+ acres for sale with a 1970's house on the property. I know little about the house but from the outside it looks like 16-1800 sq feet. Vinyl siding. Lots of paved rood frontage. Timber cut hmm looks like 10 years ago but they left the small to medium stuff so a cutting is possible now, completely wooded. One pond, no creeks. Perception is slightly bad neighborhood, poor peeps / drugs.
I live at other end of county and just sold some land for $3,500.00 acre.
The commercial property I'm thinking will go stagnant as it is in a small town.
I believe I can get this for less than $1,000.00 an acre with the house included. I love land both as an ownership thing and as investment. Would cut out house and sell.
Location is Rural Tennessee. 5 miles from interstate 40.
Would anyone give opinion on holding commercial verses buying land? Are land values, rural, going up or down? Am I crazy to even think of investing like this? Should I just use the sale to pay off debts? I'd be debt free.
Normally this is something I would do but tell the truth I'm scared now to consider spending any money/assets/...don't NEED land as I have a small farm paid for. I would either sit on it for retirement investment or try to turn a profit on it.

[devildog]

Im no expert on finances, but Rush L. says to buy gold and silver.

[ScottA]

I'd sell and pay off my debts. Forget the 100 acres unless you plan to live there.

[MountainDon]

My thinking has always been to get rid of any debt first. That includes everything; credit cards, student loans, mortgages, etc. Once you are working on a month to month basis then you have money you can save or spend.

[considerations]

I am leary of committing to any debt, particularly if it could effect my ability to keep a roof over my head.  Even if one has money coming in that isn't tied to employment, it could still dry up.

Out here it is very rural, but I've been tracking the real estate sales in the area.  So far in 2009, the properties are selling for 1/2 to 1/3 of their assessed value.  In 2005, they were selling for more than their assessed value.

Debt free is a really good goal. 

Opinions are like bellybuttons though, everyone has one.

[rwanders]

Nothings really changed---"You pays your money and makes your bet"  It seems to me you either bet on the future (buy the land) or hunker down and hope to outlast the bad times. I know that eventually the money will run out or perhaps be worthless ( like confederate money) but the land will always be there.

Final thought: It takes courage to invest when all looks dark but, therein lies the greatest potential for gain. Buy when the economy is hot and prices are high
                    takes much less courage but, therein lies the greatest potential for loss.

[muldoon]

I'd sell and pay off my debts. Forget the 100 acres unless you plan to live there.

buying for speculation is very risky now,  paying debt is no risk and immediate retrurn.  Simple choice to me, I agree with everything Scott said,  

[desimulacra]

Thanks I appreciate and respect your opinions..I tend to think like rwanders but I think I'll go with the consensuses for now and pay off debts.