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land prices

  • 14-05-2012 8:35pm
    #1
    junk_seller
    Closed Accounts Posts: 46 ✭


    according to fairly recent reports , farmland prices rose by 15% in 2011 , i know that all sectors of agriculture have seen tremdendous improvement but the fact remains , the banks are turning down large loan applications in most cases , how then can farmers afford to pay well over 10 k an acre for land , is it the case that while farmers talk poor , the reality is that they have plenty of money

    more power to them if they have plenty of money btw


Comments

  • #2
    keep going
    Closed Accounts Posts: 3,551 ✭✭✭keep going


    still a bit of "development" money around but i am also hearing that there is some money coming out of banks being invested in land due to worries about their health and also the goverment changing the cgt rules which is making a balls of it as it made no difference to farmers as they never sell land anyway:(


  • #3
    royalmeath
    Registered Users, Registered Users 2 Posts: 165 ✭✭royalmeath


    Fair play to anyone buying land but as an investment it dosent make sense, even if your full time farming it still makes no sense unless you have wads of cash around


  • #4
    BeeDI
    Closed Accounts Posts: 805 ✭✭✭BeeDI


    royalmeath wrote: »
    Fair play to anyone buying land but as an investment it dosent make sense, even if your full time farming it still makes no sense unless you have wads of cash around


    It would make plenty of sense in the event of being forced out of the euro:cool:


  • #5
    Grecco
    Closed Accounts Posts: 1,007 ✭✭✭Grecco


    BeeDI wrote: »
    It would make plenty of sense in the event of being forced out of the euro:cool:

    Makes even more sense now that the value of the euro is going down through the floor , currently less than 80p sterling and from what Ive been hearing it looks like it could be sub 70p by the year end


  • #6
    royalmeath
    Registered Users, Registered Users 2 Posts: 165 ✭✭royalmeath


    True enough but it is unlikely we will be forced out of the euro.
    I just saying if Joe bloggs goes out and buys 10 acres for 100,000
    euro and decides to let the land he might get around 150 an acre, thats
    1500 a year so in 65 years you will break even setting the land


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  • #7
    Grecco
    Closed Accounts Posts: 1,007 ✭✭✭Grecco


    RoyalMeath

    Oh thats the Irish story isnt it :D always has been. But I dont think any bank will lend the money on just a farming income, they are looking for a large deposit paid and proof of decent income


  • #8
    arctictree
    Registered Users, Registered Users 2 Posts: 4,364 ✭✭✭arctictree


    junk_seller wrote: »
    according to fairly recent reports , farmland prices rose by 15% in 2011 , i know that all sectors of agriculture have seen tremdendous improvement but the fact remains , the banks are turning down large loan applications in most cases , how then can farmers afford to pay well over 10 k an acre for land , is it the case that while farmers talk poor , the reality is that they have plenty of money

    more power to them if they have plenty of money btw

    Beware of reports in publications, you need to look at the data behind the reports.

    The papers seem to only report the sales where high prices were achieved, ignoring the lots which fail to sell and/or are sold privately.


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