Advice needed on potential land purchase

Issac

Hello,
I'm looking for some advice on a potential land purchase. Basically I am looking at a house with an acre of land. I like the house and am seriously considering the purchase.
There is a second lot of land beside the house also for sale. It's 150 acres of forest and bogland. My question is what kind of return could I get for the land or where could I get this information? My background is not in farming but the land seems cheap and I know there are grants available for afforestation and set aside land but don't know what I could expect per acre per year. Any help would be appreciated!
Is there a lot of work involved in the upkeep of forest land or once planted is it a case of getting in contractors to service?

Timmaay

Short answer don't bother wasting your time.

And meanwhile I see an ad in my boards page something like "rock solid investment", 14% return etc about forestry. If that doesn't scream bubble than what does ha.

Issac

From a financial point of view or is there just too much work to justify payments?

djmc

might be best to ask someone from teagasc to have a look or chat to the agent selling
A lot of variables we dont know like age of forestry grants usually last 15 years after plantation if land has entitlements and sheds animal handling equipment would all make a difference
not much return from that type of land to be honest might get 50 euro an acre if lucky to rent the bog part thats not planted
someone from forestry company might put a value on trees
The department of agriculture website would have info on grants and schemes but you would have to become a farmer and get a herd number to get any of them except forestry

Username John

These might be of help...

http://www.teagasc.ie/forestry/grants/

http://www.teagasc.ie/forestry/grants/afforestation_grant.asp

I think you need to replant any forestry removed as well, so factor this into your sums...

Bass Reeves

OP I remember about 20 years ago one morning at work having a cup of tea with few lads. There was a lad that gave up the job a few weeks before, he had got a bit of an inheritance and got a bit of redundancy leaning the job. He had decided that he was going opening a convenience store in a big town.

He had the property lined up to lease, the costs for fitting out the shop and stocking all costed for him by an accountant it was all ready to go. Before he signed the accountant rang him and informed him he needed another 15K as a deposit against the cigarettes he intended to stock. He could not raise it and threw p the deal

Now around the table they were all giving out about the accountant, One lad finished his cup of tea and said '' there was no point in him getting involved in a business that he did not understand the costings and working of that business and that he was lucky in a way that the accountant f@@kup''.

I taught it was a harsh statement. If you need Teagasc or a forestry company to give you the returns you are as well off passing up on this.

Issac

Thanks for the replies everyone. Really appreciate the help. I'm making contact with Teagasc and have asked for a history of what the current land owners do with the land (I know they don't live in the area and don't work it themselves).

Good loser

I know well enough about forestry.

Without knowing any details I wouldn't touch this deal with a barge pole.

Issac

Why so? Interested to hear any advice you can give!