The influence of urban centres on farmland

Red21

Outside of dublin, does the price of farmland go up much if its situated close to a town? I'd imagine there are a lot of factors to take into consideration when putting a value on land just wondering does anyone here have any knowledge/experience of this. I'm not talking about land that has some kind of zoning just farmland. I'm thinking of buying land (30 acres) about 1 mile from a large town centre. I taught 10k to 12k per acre would have me in the running but I am told it could go an awful lot more than that cause it's so close to town. Its good land.

Timmaay

There is very little logic to land prices, it really does depend on the locality. Too many factors, land quality, demand, future zoning potential etc. Then just random factors like 2 people bidding against each other for one plot and driving the price sky high despite the economic of it.

Nekarsulm

1 mile away is not what I would call "close", unless its a regional centre like Athlone, Mullingar etc, and alongside a good access road.
Auctioneer may be being a bit optimistic, IMO

onyerbikepat

Auctioneers will string you along too, if they think you are very keen. In a way it can be better not to seem that interested, if you know what I mean.

Base price

No harm to visit the county council head office and see what the (proposed) 10 year plan for the area is, if any.

Count Mondego

I think that any newly zoned land will carry an extremely punitive capital gains tax or development tax, not sure which. I think the powers realised that farmers selling land for development were the only real beneficiaries of the boom. Brought in about 2 budgets ago.

joejobrien

Smaller parcels attract more per ac basis generally.....ie more lads with a fist of money for smaller pieces, where as go to the upper scale say 300/400 ac farm, then there would be a lot less takers vs 15 acres a mile down the road from you.

Cattlepen

Count Mondego wrote: »

I think that any newly zoned land will carry an extremely punitive capital gains tax or development tax, not sure which. I think the powers realised that farmers selling land for development were the only real beneficiaries of the boom. Brought in about 2 budgets ago.

Not100% sure but I think the windfall tax might be gone so as to encourage a bit of development activity

Red21

Timmaay wrote: »

There is very little logic to land prices, it really does depend on the locality. Too many factors, land quality, demand, future zoning potential etc. .

I havn't talked to auctioneer yet only a few locals, I think its the future zoning potential thats driving this land cos a lot of land around it zoned. Maybe im way of the mark but i also think that there is some kinda prestigious element to all this? Could that be true? Its like farmer version of living in the posh part of town's maybe because its the right address and land in that townland went for massive prices in the past

Zoo4m8

Cattlepen wrote: »

Not100% sure but I think the windfall tax might be gone so as to encourage a bit of development activity

Yeah, windfall tax is gone, it eventually penetrated their little brains that nothing was ever going to move again with such a stupid tax in place.. It's Capital Gains Tax at 33% for the seller ....

Base price

Zoo4m8 wrote: »

Yeah, windfall tax is gone, it eventually penetrated their little brains that nothing was ever going to move again with such a stupid tax in place.. It's Capital Gains Tax at 33% for the seller ....

Happened to be in with the accountant the other day and the conversation got around to selling land. I am not selling land but wanted to be aware of the current tax implications.
Accountant said that the 33% CGT can be offset in certain circumstances, eg - if you sell an outfarm and buy land adjoining or nearer to you which would help to consolidate your farming enterprise, iykyim.