Would we be mad?

[atlas]

As some told me . It is better to stand on a bit you own than a lot you don't .

 

[glasshouse]

A very successful farmer said he would rather farm 50 owned acres than 500 rented

 

[neilo]

Our current smallholding is probably not a great property for rental - but we'd sell it, buy a low maintenance house in town to rent out, so as to stay in the property market and have some additional income.
The farm in question is a council let - anyone any experience with the council as landlords?

Read the particulars carefully and be aware that most council lettings are for a limited duration, usually with no ability to stay on at the end of it. I did see quite a few that were for 5 year FBTs, which you could extend to another 5 years (if the Council were willing), but it was stated from the outset that 10 years was the maximum. Ten years is nothing, and you will be out on your ear with very options for anywhere to progress to.
The idea of a Council farm as just a starter unit is great, but there needs to be some way of progressing afterwards for it to work.

 

[yellow belly]

14 acre swapped for 100 is 7 times the area and possibly 10 times the farmable area
buying a house in town as a agricultural tenant the interest on the morgage is tax deductible
the return on investment as a tenant is far superior to a owner occupier 10 times higher

looking forward it is most likely that the value of agricultural land will fall considerably over the short to medium term
rents will also fall
but make sure that there is no development potential on the acres you sell
if you do sell do not look back

 

[ajl]

I don't know the property market over there but this is how I would go about it here. First try to get the rental secured and then sell the existing small holding for a small property in proximity to the rental farm. Would that work in your situation?