Land for sale

lstmd

Twenty acres of land for sale about a mile away. Was considering trying to buy it but not farm it. Try lease it out on a long term lease i.e. more than five years. Guessing a yearly lease of 200 tax free on a cost per acre of 8,000 i.e. a return of 2.5%. I have a full time job but am from a farming background. Would have the land later in life to farm. Wondering what people think. Would I be better off adding this money to a pension fund each year? would I get a better return?

greysides

Moved to more appropriate forum for attention.

handlemaster

OP= I would think it depends where it is etc. If there is building posibility,close to a town etc

roosky

I wouldnt thinj the land will increase in value as land prices seem to have stagnated post the celtic tiger....unless you build on it..

The reality is it wont dissapear or depreciate

Timmaay

What's the average rate of inflation? It could quickly erode your 2.5%. There is surely plenty properties out there with the likes of 6% or better return, in particular in the current rental market. Before anyone says, both run the risk of devaluing, bad tenants etc etc. Looking at another alternative, what about forestry?

viztopia

A 2.5% return on an investment which is tax free is the same as a 5% return on something that is taxable if you are paying tax at the high rate!

ganmo

viztopia wrote: »

A 2.5% return on an investment which is tax free is the same as a 5% return on something that is taxable if you are paying tax at the high rate!

thats assuming the tax free land lease remains in place

handlemaster

op ...where u looking