So how do you pay the capital back?
Land Values
- Thread starter jon9000
- Start date
- Location
- Northumberland
Thats what im thinking. More like 3% over base.
love to know where i can invest in a business that gives a roi above interest rate. Either sellers wont sell such businesses or too many people try to buy them that you dont get a sniff or their too expensive.
Land ownership brings opportunities (so does renting to some extent). People with money know this and so it does help support prices.
you never know what is around the corner and can struggle for years, but holding land something you don’t always expect can crop up......I’m still clinging on
you never know what is around the corner and can struggle for years, but holding land something you don’t always expect can crop up......I’m still clinging on
serf
Member
- Location
- warwickshire
Exactly , theres not going to be any random luck or houses built on a bit of paper with some numbers on it being shifted around by a spiv in london !Land ownership brings opportunities (so does renting to some extent). People with money know this and so it does help support prices.
you never know what is around the corner and can struggle for years, but holding land something you don’t always expect can crop up......I’m still clinging on
- Location
- Buckinghamshire
I agree money is cheap but at 2% that is still more than 1% over base and i think there is more fees these days as well with little add ons and the banks want more paper work than they use to
midlandslad
Member
- Location
- Midlands
nothing solves high prices more than high prices.
Our economies could certainly do with a little inflation just to help erode the debt pile that has been accumulated over the past year.
Do you think land values will tick up behind the current commodity rally?
Are margin rates on loans increasing still or have they plateaued?
midlandslad
Member
- Location
- Midlands
A spike in crop values won’t send land values up again in my opinion.
it all comes back to supply and demand. With values relatively static when supply is at the lowest level and if and when supply goes up there will need to be a match in demand or values will fall.
location Location location is key.
loan rates are similar to 6 months ago from what I see.
- Location
- Northumberland
I think you have got it wrong,at least as far as Northern England is concerned.There is hardly any supply,and what comes on is moving fairly quickly,at least at the guide price,and more often quite a bit more. Rent revues are also only going to go one way,at least in the short term,with increasing grain,and livestock prices. Land prices will only fall if there is a massive slump in commodity prices going forward,due to unrestricted cheaper imports,and changes to roll over taxation.
midlandslad
Member
- Location
- Midlands
I agree with the above and it will come down to the levels of supply going forward. A lot of potential sellers will have been sitting on their hands waiting for greater certainty over Brexit, future of support and now COVID. All but the last are a lot clearer and in a couple of months with a vaccine getting rolled out so will be the latter.
Going forward there will be a lot more debt driven sales as farms have borrowed to the hilt, more retirement and death sales due to the age profile.
warksfarmer
Member
No. Still £20,000 - £22,000 per acre around here.
Brexit could of dropped values but I’m not so sure now, although there is time yet.
The proposed land tax / asset tax would drop it 25% if it comes in.
However I think any increases in value now will slow down dramatically.
midlandslad
Member
- Location
- Midlands
We have over the last 10 years seen exponential growth in land values and we cannot expect this to continue indefinitely.
In areas with non farming money strong values will continue to be achieved.
Unless £200+/tonne is here to stay commercial farming businesses will not have the capacity to buy big blocks of land especially with reducing support. In Lincolnshire I think that Savills said that only half the farms marketed in 2020 had been sold and this is a county with a well known buyer hoovering land up.
There are potential changes to CGT/IHT, however, it looks like they are going to be kicked down the road and this may generate supply as people look to make the most of the current CGT rates as they will only go one way.
In areas with non farming money strong values will continue to be achieved.
Unless £200+/tonne is here to stay commercial farming businesses will not have the capacity to buy big blocks of land especially with reducing support. In Lincolnshire I think that Savills said that only half the farms marketed in 2020 had been sold and this is a county with a well known buyer hoovering land up.
There are potential changes to CGT/IHT, however, it looks like they are going to be kicked down the road and this may generate supply as people look to make the most of the current CGT rates as they will only go one way.
- Location
- Northumberland
What is the guide price £/acre of these farms that have not sold? Continuous Wheat/Blackgrass problem? Below sea level/prone to flooding? I guess its location as well. Anything up here,50 acres +,is being hoovered up almost immediately.
pgk
Member
- Location
- south warwickshire
Interesting, I see locally on northern edge of cotswolds 10 acres ridge and furrow with pole barn up for £17k an acre must have peaked over £20k then.
midlandslad
Member
- Location
- Midlands
Binbrook Top Farm, Kirmond Road
Market Rasen, Lincolnshire LN8 6HY. BINBROOK TOP FARMKirmond Road, Binbrook,Market Rasen, Lincolnshire LN8 6HYLincoln - 24 miles Market Rasen - 7. ...
www.jhwalter.co.uk
Both first class farms and not daft money.