To buy or not to buy, what would you do?

[Phil P]

We have been offered first refusal on a decent block of land, we already farm on 3 sides of the block so it makes sense to give us first chance.
What I’m concerned about is I’ll have to borrow some money to buy this land and as most will know arable farming doesn’t really produce massive profits even in a good year!
Also with brexit on the horizon and interest rates only going to go one way would I be mad to have a go at it?

This will probably be the one and only chance in my life time I’ll get to buy this block and I’d be a little p*##ed to see it go to someone else but should I put business before pride

To be honest I know what I’ll probably do but it always good to hear others opinions before jumping in

Thanks In advance.

 

[Sid]

No brainer.

 

[john432]

So many factors , besides financial sense... main one....your age and is there a successor to your empire?

 

[Phil P]

So many factors , besides financial sense... main one....your age and is there a successor to your empire?

I’m only mid 30’s and have a son and daughter but it’s far to early to say if they will want to take over the business, as much as any 3 year old is mad on tractors.

This is over 30ac of grade 1 arable so not exactly pocket change

 

[Grouse]

Buy it - if you don’t you will regret not doing so for the next 25/50/100 years - that’s assuming it’s not for sale at stupid tipi stupid money and you won’t go hungry buying it.

If at market value - it always comes good - trust me I have been there and bitterly regret not buying some adjacent “property” when I should have

It’s unlikely the opportunity will come again in your lifetime so I would do it

 

[7610 super q]

Interest rates couldn't possibly be lower.
It's next door.
You can always sell it again, if things go tits up........

 

[Phil P]

Buy it - if you don’t you will regret not doing so for the next 25/50/100 years - that’s assuming it’s not for sale at stupid tipi stupid money and you won’t go hungry buying it.

If at market value - it always comes good - trust me I have been there and bitterly regret not buying some adjacent “property” when I should have

My grandad is 94 so If I do as well as him I could spread the payments over the next 60 years I suppose

 

[ploughman1963]

Interest rates couldn't possibly be lower.
It's next door.
You can always sell it again, if things go tits up........

exactly what my thoughts were

 

[Will Blackburn]

Buy it, save the hand wringing for land a couple of miles away.

 

[Werzle]

If you can make the figures add up then it wants buying. If your already in the deep end it wants leaving.

 

[john432]

@Phil P , you still have the enthusiasm of youth, and as Grouse says it allways comes good. If you can get the figures to stack up ,then you have to go for it!

 

[Grouse]

@Phil P
You know what needs doing

 

[Phil P]

@Phil P
You know what needs doing

I’m starting getting the feeling that’s the common theme, it’s sometimes just nice to know what others would do in the same situation.

 

[MrNoo]

When you eventually pay it off, it's purchase price will seem very cheap. We bought a block + house/buildings, ended up paying 52k/year for the last 20 years, tight at times but a very good investment. If the figures add up then go for it, you will never be able to borrow money cheaper than now.

 

[curlietailz]

If you are strapped for cash sell some outlying or crap land to pay for it
Best have a neat and tidy ring fenced farm than a straggly one miles apart I reckon
Buy it

 

[Nearly]

stop thinking and just do it.

 

[Phil P]

If you are strapped for cash sell some outlying or crap land to pay for it
Best have a neat and tidy ring fenced farm than a straggly one miles apart I reckon
Buy it

We’re pretty lucky in the fact that we are almost ring fenced now and most outlining land is within 3-4 miles at most.
This block will be inside the ring so probably would be daft to not have a go at it.

 

[Recoil]

Buy it!

 

[Still Farming]

As above as long as your not in a bidding war with someone else and get really carried away ?
If you never had it your'll never miss it too ?

 

[Werzle]

I’m starting getting the feeling that’s the common theme, it’s sometimes just nice to know what others would do in the same situation.

Farmers always find it easier encouraging other to spend!