Land Values

[The Seeker]

I know of a chap selling a farm atm , he says the demand is staggering.

 

[BELOWAVERAGE]

I'm not 100% sure to be fair but it's what I've heard doing the rounds so may not be true

The guide is about 12 or 13 an acre.

 

[midlandslad]

I know of a chap selling a farm atm , he says the demand is staggering.

what sort of farm?

 

[Clive]

big question I'm asking myself at the moment do you think land values have dropped and if so do you think they will keep dropping

not dropped

wont drop

will rise

 

[Clive]

I agree about interest rates they have found away of charging more than straight interest increases
People are paying more now than when it was higher.
You used to be able borrow at 1% over bank base rate that is now a thing of the past
That is how Gordon Brown help refinance the banks after 2008 crash

can borrow at 2% right now

money is really cheap

inflation is more than 2% so it’s actually free to borrow in relative terms

 

[serf]

All hunky dorry then ! as long as you can service the debt over the potentially volatile and unknown years ahead into the elms years ect

 

[Clive]

All hunky dorry then ! as long as you can service the debt over the potentially volatile and unknown years ahead into the elms years ect

if you can secure and service borrowing to buy safe or appreciating assets or invest in trade or business that returns margin above interest rate is a no brainier right now

 

[Bob]

can borrow at 2% right now

money is really cheap

inflation is more than 2% so it’s actually free to borrow in relative terms

Where can you borrow money at 2% for land purchase?

 

[Clive]

Where can you borrow money at 2% for land purchase?

thats a current offer i have from lloyds bank to fund building a new shed ....... I’m sure others are as competitive

 

[theboytheboy]

thats a current offer i have from lloyds bank to fund building a new shed ....... I’m sure others are as competitive

What the length of borrowing? Fixed or variable?
My current lloyds offer is much higher.....would be good to have something to compare it with.

Pm if your prefer

 

[fieldfarmer]

thats a current offer i have from lloyds bank to fund building a new shed ....... I’m sure others are as competitive

I love it when you go back and alter you own posts or does someone help censor you?

 

[Clive]

I love it when you go back and alter you own posts or does someone help censor you?

anyone can edit their post for a while after its posted - i decided to shorten it nothing more

but i had removed this .......

rates depend on your level of security and serviceability plus your track record and relationship

 

[Clive]

What the length of borrowing? Fixed or variable?
My current lloyds offer is much higher.....would be good to have something to compare it with.

Pm if your prefer

2 year - fixed - 250k

 

[Clive]

What the length of borrowing? Fixed or variable?
My current lloyds offer is much higher.....would be good to have something to compare it with.

Pm if your prefer

but as above ....

rates depend on your level of security and serviceability plus your track record and relationship

 

[fieldfarmer]

anyone can edit their post for a while after its posted - i decided to shorten it nothing more

but i had removed this .......

rates depend on your level of security and serviceability plus your track record and relationship

You took out the bit where you tried to belittle him.

 

[Bob]

2 year - fixed - 250k

I would struggle to find 12k per month to finance that

 

[Clive]

You took out the bit where you tried to belittle him.

i took out the bit i posted above - rates offered individuals depend on circumstances

that’s not belittling, its how finance works


you can edit your posts the same i can for up to an hour after posting if you choose to

 

[Clive]

I would struggle to find 12k per month to finance that

interest only loan so you don’t need to - the asset will soon pay for itself

 

[fieldfarmer]

i took out the bit i posted above - rates offered individuals deprnd on circumstances

tjats not belittling, its how finance works

No the bit you took out said, "I didn't say you could, I said I could" referring to 2%, and more about how safe you were. But let's not worry.

 

[midlandslad]

2 year - fixed - 250k

The rates would be considerably more if you were taking this on a long term interest only basis. The banks appetites for lending to agriculture has dropped in recent years.

Land values are so localised. When you are near lots of chimney pots with rollover money values will grow or remain static at worst. Now look at a commercial farming county like Lincolnshire only half the farms marketed this year have sold and these are exceptional farms marketed at realistic figures.