Nearly
Member
- Location
- North of York
It used to be 'Buy land, your kids will thank you'
Now it's looking like' Buy land, your grandkids will thank you'
Now it's looking like' Buy land, your grandkids will thank you'
Is now a good time to buy a farm?
- Thread starter boyo
- Start date
- Location
- Limousin/Charentes toad land
In continuing with the useless advice on here....
It's the right time to buy the right farm.
Either one next to you, or one in a better area and trade up.
Time will tell, that's all.
Looking at making a major financial commitment here and buying a lump from a near neighbour, getting really adventurous and detailed talks are continuing on the matter of 6 acres.
Harsh, I thought this thread was going quite well?
Penmoel
Member
Bossfarmer
Member
- Location
- between Perth and Inverness
its no problem paying up the land at the moment if subs went tomorrow though it would be an issue
- Location
- S. Staffs
I think the main distinction to make is between the ownership of land, which has always been the capital base of the' landed gentry', and farming the land to make a living. Up to the start of the IACS system, farm rents reflected the earning power of the land and buildings, and the house value was virtually ignored. Since then, FBT's and competition between farmers has meant that rents are now defined by the sub available, a complete distortion of its true value, and agents are adding in a value for the house as well if they can get it. I hope that if and when we get a new support system in place it is geared to working farmers and non-producers are ineligible to claim.
Buying land is purely an investment imo, if you are lucky enough to get a bit of village fringe housing etc then every little helps, it's not so bad if you can grow over time but this is largely a matter of luck as land on average changes hands very infrequently. One thing is true though, as my old man used to say 'the opportunities you have been waiting for always come when you can least afford them !'
Buying land is purely an investment imo, if you are lucky enough to get a bit of village fringe housing etc then every little helps, it's not so bad if you can grow over time but this is largely a matter of luck as land on average changes hands very infrequently. One thing is true though, as my old man used to say 'the opportunities you have been waiting for always come when you can least afford them !'
- Location
- Darlington
Or as someone said to me, a lot of years ago, as one door closes another one opens. I would dread to think some land came up close to me. I wouldn't even try for anything capable of growing taties as there is too much local interest in it.
Grassman
Member
- Location
- Derbyshire
£10k an acre for a lot of land. Plus house and buildings. What farming will pay for that?
Bossfarmer
Member
- Location
- between Perth and Inverness
Lands not 10k an acre in scotland, unless on the golden mile
- Location
- Wales
lots of land here easily fetching the £12K - £16K mark
Land 15 -20 % down from peak according to a private conversation I had with a director of a large land agency. Huge differences from asking price to selling price if it fails to sell quickly so the flyers still going above asking the rest may be more than the average reduction quoted above. Lots of wide variations at present.
- Location
- Cirencester
We were exactly in this position, cost us £1k/week to pay off the loan, still paying now but will end mid next year. Would I do it again? I am not sure I would as it's a constant worry, living effectively hand to mouth, am getting too old and short of energy and besides there's more to life than farming.
The only way I would do it again would be if the land/property could be asset stripped to pay back a large chunk of the loan and in the event of no subs after Brexit I suspect it'll only be the big boys buying as farming alone wouldn't pay the borrowed monies back.
- Location
- Lincolnshire
1% of £10,000 per acre is £100. I will be lucky to make £100 per acre profit this year, excluding subs.
And what about repaying the capital? Over 25 years that's a staggering £400 per annum per acre.
It's absolutely not feasible to buy land at £10k per acre and pay it off by farming it. It's a no brainer,
- Location
- Limousin/Charentes toad land
The only way a farmer can buy land is to be doing small scale expansion on land already owned. In the short term he will be worse off too but of course when the land price is inflated, then he will feel better off and could sell for a tidy profit. Of course, he won't do that, he will use that extra security too...
Buy more land
.holywell farmer
Member
- Location
- holywell, north wales
Are wanting many more acres ?
Where ?
Grassman
Member
- Location
- Derbyshire
Wales
ollie989898
Member
The offshoot is that if you don't but land and you have a need for land to let your operation prosper you end up renting. This is not without it's own drawbacks, before you bring costs into it.
Buying land is not a get rich quick scheme really and is obviously a long term game, the name of which is the ability to repay the interest involved. The increase in value of the asset over time and the possibility of selling the odd parcel for building etc is an obvious advantage but the main question is does it aid the existing business? If it does then it doesn't differ from putting up a new shed or slurry store in reality.
Buying land is not a get rich quick scheme really and is obviously a long term game, the name of which is the ability to repay the interest involved. The increase in value of the asset over time and the possibility of selling the odd parcel for building etc is an obvious advantage but the main question is does it aid the existing business? If it does then it doesn't differ from putting up a new shed or slurry store in reality.
- Location
- Ceredigion, wales
I totally agree with your logic, no land can pay for itself under current values. But say you had two hundred acres and bought an extra fifty then you'd have 250 acres paying for it rather than just the new fifty. It's still not easy but the sums do look very different.
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SRRC
Member
- Location
- West Somerset
No other business obsesses about ownership like farming does. Very few businesses own their premises, they would rather use the capital to develop productive assets instead. MrNoo above describes paying £1k a week and the pressure involved, I understand exactly why we want to do it but are those pressures worth it?
Perhaps the problem is that we are actually buying a home and sentiment takes over?
Perhaps the problem is that we are actually buying a home and sentiment takes over?