The direction of post Brexit and government agenda is making large investors very nervous, with the first of two very large institutional investors about to release massive acres for sale. We added some land to our family farm three years ago, but feel we have got that wrong and now too much debt to take our business forward, especially as our land borrowings to value have escalated.
Massive Institutional Land Sell Off
- Thread starter Onthedowns
- Start date
Will Blackburn
Member
- Location
- Cheshire
If they keep printing money stick with it.
There appears to be more land up for sale, not farmers selling either.
There appears to be more land up for sale, not farmers selling either.
- Location
- Lincolnshire
Debt is half the price it was three years ago, surely?
livestock 1
Member
We also have invested in land heavily. I think the main concern is what was acceptable as far as serviceability is not acceptable now. In fact I didn’t even hear the word serviceability until 2009.
Buying land has never been (up until now anyway) a bad idea. Dealing with the banks after this is an unknown quantity. As said above stick with it and see the devaluation balance things out.
Buying land has never been (up until now anyway) a bad idea. Dealing with the banks after this is an unknown quantity. As said above stick with it and see the devaluation balance things out.
GeorgeK
Member
- Location
- Leicestershire
Selling land is a far simpler decision for those who hold it purely as an investment because it simply comes down to money. The problem with land at the moment is uncertainty due to as yet unknown changes in policies that could have a huge impact on value and income. This doesn't necessarily mean it's all bad news, but it increases risk, and big investors must manage their portfolio to control their exposure to risk.
For farmers buying or selling land is a much more complicated equation as it is much more than a simple investment and involves our family, history, culture, identity and so on
For farmers buying or selling land is a much more complicated equation as it is much more than a simple investment and involves our family, history, culture, identity and so on
Steevo
Member
- Location
- Gloucestershire
This is true. Also the knowledge that if you sell the land you’ll never buy the same patch back again.
Investors just a commodity....location, access, cropping ability, field size etc are less relevant. An acre is an acre, just like an ounce of gold is an ounce of gold.
you mention “serviceability”. so did you invest in land or did a bank ?
it’s not yours until you pay for it !
- Location
- East Sussex
Yes, but they aren’t half watching that debt. Once upon a time the banker manager would sit down and ask how much you want....... they don’t now.
livestock 1
Member
Ha it only belongs to the bank if they have a charge on it!
Or if I don’t pay the loan or overdraft!
The bank invested in me!
you bought land on a overdraft ? sounds expensive! .......... and rather risky
livestock 1
Member
No I didn’t lol. More risky not buying any in my book but everyone to their own.
Enough about how I bought mine.
How did you buy yours??
land i’ve bought usually with fixed term bank repayment loan on fixed or variable (or a hedge of both)
it’s never “mine” until the loan is settled !
i’ve also bought “cash” by selling other land - i’m as happy to sell land as i am to buy it as long as i’m making something out of doing so
ollie989898
Member
I think the 'experts' and media are making a storm in a tea cup. Only in the UK are we so keen to talk ourselves into a recession. Economists: 'oh mah gawd 20% drop in GPD!' Only they don't know any more than anyone else because this is an unprecedented situation. Is 20% good or bad given the circumstances? More to the point, what will demand do when restrictions are lifted? That is right, they will rocket. A lot of people are saving a lot of money right now. The main job of government will be helping business to get back into the swing of things and avoid the need for large lay offs. Of course big businesses will be doing that anyway and using Covid as an excuse.
- Location
- Worcestershire
None been sold round here.
All a bit short term really, what happens if UK economy does really well compared to rest of Europe over the next 5-10 years. Land
prices could increase dramatically, you only realise the profit/loss when you sell so stick with I would say if you can. The banks of course only see the here and now so you have to be able to service debt comfortably in my opinion, or what looks comfortable to the bank, no matter if it is uncomfortable for you!
prices could increase dramatically, you only realise the profit/loss when you sell so stick with I would say if you can. The banks of course only see the here and now so you have to be able to service debt comfortably in my opinion, or what looks comfortable to the bank, no matter if it is uncomfortable for you!
livestock 1
Member
Ha ha ‘we’ve invested heavily in land’ doesn’t indicate that it’s ‘mine’ but I know you aren’t daft due to what you write so we won’t go down that road.
midlandslad
Member
- Location
- Midlands
Which investors are selling up?
The Crown Estate and Church have had a pretty big clear out in recent years.
- Tags
- storm