Rent vs sell land?

boardbro

I have an injury so I can't be working on the farm long term, so I'm thinking of either renting out the land or selling it, which is more recommended at the moment? I have some land in galway

porter shark

It's a no brainer. Lease it. Look at someone in your position who has their land leased for the last 20 years. They have as much money gotten from the lease as they would have if they sold at the time.... and they still have the land.

boardbro

Gotcha, have prices for leasing out gone up or down in the last few years?

porter shark

I'd say prices will be very variable this year depending on trading of entitlements. I reckon if u advertise the land well you could be very well paid this year. What type of land is it? Is it in a tillage area? And how much land?

rangler1

porter shark wrote: »

I'd say prices will be very variable this year depending on trading of entitlements. I reckon if u advertise the land well you could be very well paid this year. What type of land is it? Is it in a tillage area? And how much land?

Some people have fared very badly in profit sharing arrangements with tillage farmer, might be as well to avoid those

porter shark

Lease all the way boardbro. Wouldn't touch a profit share.

barnaman

Depends what its worth lets say 50 acres worth €250,000 generates €7,500 a year in rent under a lease @ €150/acre. Take from that professional fees, USC and PRSI. Also cost of keeping land fenced. (Any land I, our family rented or know of the landlord maintains the fences). So allowing for all that €6k may be return. Poor return on capital value. Much better off buying 2 apartments and renting them. Guy I know makes €50k a year from renting 3 apartments to social welfare recipients! Only found out chatting to him at a wedding. Made me seriously think about selling myself. Like 99% of lads the whole family farm thing stops me doing it.

porter shark

Landlords in galway don't usually look after fencing. Great tax relief on income from long term lease. Do you think the man with the apartments has no hassle? I think you'll find that land leased to a decent tenant is the handiest money you will ever get.
Just do plenty of research on your tenant. There are plenty of comments renting land.

XR3i

boardbro wrote: »

I have an injury so I can't be working on the farm long term, so I'm thinking of either renting out the land or selling it, which is more recommended at the moment? I have some land in galway

have you asked your nieces and nephews or cousins, or even distant cosins, or inlaws or whatever if any of them might be interested anytime in the land,

it could be a pity to just let it go so easy

edit on the other hand a nice few quid in th epocket and head off and tour the world, you could buy a nice bitta land again out in some foreign country, with sunny weather