Land prices

[midlandslad]

Land prices won’t drop even if interest rates went to 10%. There’s to many new interested parties wanting carbon credits and greening via tree planting and rewilding etc. Also do not underestimate the sheer volume of money people have in bank accounts and that includes farmers.

If rates go up 2% there would be carnage and that includes the agricultural sector. There are substantial sums borrowed, eight figure loans are the new seven figure loans.

If rates go up the banks will be even less able to lend as they will have a higher stress test figure.

Also if rates go up people would be less inclined to spend on an asset with a low return when they can get a reasonable rate from money in the bank.

 

[warksfarmer]

So where to people think the price of land will go over next 5-10 years?
Farm inputs are going through the roof at present, being offset to some extent by strong trade for meat, milk and grain.
But I don’t feel reality has truly set in yet reference subs disappearing, margins are going to get way tighter. But seems lots still happy to pay big money for ground.
Buy now, crack on and see what happens or wait 5-10 years? and maybe get some real value for money albeit in a harder farming scenario

£20,000/ac easily achievable around here for bare land. Most farmhouses and buildings are split off and sold separately to maximise the sale because you only sell once.

 

[Farfrae]

The current fiscal lunacy in the uk cant continue forever

The current fiscal lunacy in the world cannot continue. The whole scam is teetering under the trillions of dollars/ pounds/ Euros that have been magicked into existence.

Now there are those that say that the crash will be engineered to bring about the wipeout of that pile of debt, introduce new cryptocurencies and the new social controls that will be brought in i.e. digital Identity (already being brought in by a an unnecessary vaccine passport) and Universal Basic Income (which Wales is planning to trial). Once those are in lockstep it's game over. You will only be allowed to spend money if it meets approved criteria (for example you may not be able to buy alcohol with your UBI in the supermarket)

The World Economic Forum tells us that by 2030 "we will own nothing and be happy'

So my point is that the assumption that land prices will continue to increase won't necessarily hold true if there is a massive collapse and all assets are seized by the state and everyone issued with some Crypto "compensation".

Nonsense you might cry. But then if I told you two years ago that you would happily give up your freedoms, stay isolated in your house, wear a muzzle to go out and happily show your papers to go to a soccer match you'd have called me a nutter then as well.

We are in strange times and most people haven't woken up yet to the potential dangers.

 

[glasshouse]

Land prices won’t drop even if interest rates went to 10%. There’s to many new interested parties wanting carbon credits and greening via tree planting and rewilding etc. Also do not underestimate the sheer volume of money people have in bank accounts and that includes farmers.

Who says the carbon lunacy will continue?

 

[warksfarmer]

Who says the carbon lunacy will continue?

Until global warming is forgotten about it’s going nowhere.

 

[glasshouse]

Until global warming is forgotten about it’s going nowhere.

That might be soon

 

[toquark]

There is no viable political opposition to the Net zero agenda therefore its here to stay. The electorate simply don’t have a choice on the issue.

There needs to be a radical political shift away from the two party system before it’ll go anywhere.

 

[glasshouse]

There is no viable political opposition to the Net zero agenda therefore its here to stay. The electorate simply don’t have a choice on the issue.

There needs to be a radical political shift away from the two party system before it’ll go anywhere.

Or labour grow a pair

 

[Kernowkid]

If rates go up 2% there would be carnage and that includes the agricultural sector. There are substantial sums borrowed, eight figure loans are the new seven figure loans.

If rates go up the banks will be even less able to lend as they will have a higher stress test figure.

Also if rates go up people would be less inclined to spend on an asset with a low return when they can get a reasonable rate from money in the bank.

100% right. No way on earth if rates go up significantly land stays at the same high level. All the large farms around here are limited company’s and you can see how huge their level of debt is even with historical low rates. The carbon/tree buyers are after the marginal stuff

 

[toquark]

Or labour grow a pair

Have you heard the Labour Party? They’re in this deeper than the tories and are fully staffed and represented by radical leftists obsessed only by pronouns and virtue signalling. Hopeless.

Like I said, the best we can hope for in the short to medium term is either Boris to get a divorce, be ousted, or be made to change his ways by his back benches who will hopefully be getting some heat from their constituents.

I’ve never written to an MP before but if you are in a Tory constituency as I am, I think it would be worth a letter or a visit to a surgery. If nothing else to make you feel better.

 

[Fake it ‘til you make it]

The rise in land prices is closely linked to the interest rates, as these rise there will be a drop in demand and price in commercial farming areas. Where plenty of rollover money is kicking about the skies the limit.

There is a lot of debt out there in the farming world and many will be at the limit.

Rates have been rock bottom since 2008, so do low rates really explain the sudden spike in land values?

 

[Nearly]

Anyone with money in the bank will have been trying to put it into something more solid that will hold its own in uncertain times.
Buying land is also tax efficient.
Farming income or sfp is almost insignificant in the value calculation.

 

[Kidds]

Sold quite a bit of land over the last year or two and hardly any made £10k. I'd say average was somewhere around £8.5k and that would be anything up to 40 acre blocks.
A few small bits made stupid money, more like £40k and won't be built on.

 

[BuskhillFarm]

18 acres beside me, tramped not looked after ground dilapidated house at £20k an acre, take about 100years interest free to make that back out of it.

 

[Nearly]

Cashed in 30 acres of steep shite at 750ft asl and cleared £550k in small lots over last 6 years.
More work but emptied the pockets of 8+ neighbours.

 

[glasshouse]

18 acres beside me, tramped not looked after ground dilapidated house at £20k an acre, take about 100years interest free to make that back out of it.

Where

 

[BuskhillFarm]

Where

N Ireland near banbridge

 

[glasshouse]

N Ireland near banbridge

So thats £360k?
Bargain

 

[BuskhillFarm]

So thats £360k?
Bargain

Offers over

 

[toquark]

18 acres beside me, tramped not looked after ground dilapidated house at £20k an acre, take about 100years interest free to make that back out of it.

Here that would go for £5-600k. Up about £200k on the year