Buying land

[multi power]

What % of arable land in England is farmer owned
All land in ni is in private/farmer hands

my guess would be half

 

[Yale]

Buy the land and hope inflation takes care of the initial investment inflating away from it.

 

[stewart]

Buy the land and hope inflation takes care of the initial investment inflating away from it.

You still have to pay the interest with cashflow.

 

[Yale]

You still have to pay the interest with cashflow.

That’s the tricky bit.

 

[it's not over]

I've never seen a farmland investment loose money but if farming goes through a difficult period after brexit,it's only going one way

 

[Yale]

I've never seen a farmland investment loose money but if farming goes through a difficult period after brexit,it's only going one way

If it’s bad folk look for a safe place in a recession and land is not going anywhere.

 

[ARW]

You don’t need to afford to pay off your debt, you just need to be able to afford the interest on your debt!
Same as bank charges, the offer you a nice little bit of interest which is roughly the same as your bank charges

 

[chaffcutter]

A big outfit near us went bust some years ago with bank lending of five time their nett value. How they persuaded the bank to keep lending to that point I can’t imagine!

 

[Yale]

A big outfit near us went bust some years ago with bank lending of five time their nett value. How they persuaded the bank to keep lending to that point I can’t imagine!

It’s only when the tide goes out you find out who’s got their pants around their ankles.

 

[Phil P]

A big outfit near us went bust some years ago with bank lending of five time their nett value. How they persuaded the bank to keep lending to that point I can’t imagine!

If you owe the bank 500k it’s your problem, if you owe the 5 million it’s the banks problem!
They’ll get to a point where the bank can’t afford to let them go under so they pump more money in in the hope the debt will be serviced eventually.

 

[Grassman247]

Now why didn’t I think of that?,maybe I should start spending some of my lottery win [emoji848].So everyone has pots of money,so why are farmers complaining all the time over prices,subs going.With lots of money you don’t need subs.ha ha tin hat on.

The ones moaning perhaps need to look at there business instead of blaming other factors. Maybe it’s themselves they need to blame for there lack profitability.

 

[Doing it for the kids]

Opportunity has been out there by the bucket loads in the last 5 years or so, FIT’s, RHI, V cheap money and favourable planning for farmers etc.

It’s all down to your game plan, view on risk and nut size!?

 

[nelly55]

I’ve been told capital and interest ,stress tested at 9%.Could fix at 3.75 or there about but not if you couldn’t pass stress test

 

[trebor07]

I’ve been told capital and interest ,stress tested at 9%.Could fix at 3.75 or there about but not if you couldn’t pass stress test

You can get it even cheaper now !

 

[nelly55]

Where

 

[Grassman247]

Where

Wonga.com

 

[Farmer Roy]

Used to be that you would not borrow more than a third of your asset value, what's the rule of thumb now. 10 times more ?

banks here wont lend more than about 50% for agriculture

they get a bit nervous once your equity drops below 60 %

 

[Tarw Coch]

I've never seen a farmland investment loose money but if farming goes through a difficult period after brexit,it's only going one way

I have, it was Land we sold which a few years later (less than 10) was sold again for less than half, would have been in the 80,s.
Land has certainly been a good and safe investment in recent years but there’s no guarantees that will allways remain the case

 

[Farmer Roy]

I have, it was Land we sold which a few years later (less than 10) was sold again for less than half, would have been in the 80,s.
Land has certainly been a good and safe investment in recent years but there’s no guarantees that will allways remain the case

with climate change & our environment getting hotter & drier, I can see land values falling in the future

 

[Nearly]

As the saying goes we all end up in 8x4 plot,?

Plywood sheet coffin?