Bank loan for buying land

bosallagh88

Folks I’m a young farmer with an off farm job I am interested in buying ap 30 acres of land near me. I am just inquiring before I make contact with the bank as to what the approximate interest rate will be collateral or security etc required etc thanks for any input

Keep Sluicing

bosallagh88 wrote: »

Folks I’m a young farmer with an off farm job I am interested in buying ap 30 acres of land near me. I am just inquiring before I make contact with the bank as to what the approximate interest rate will be collateral or security etc required etc thanks for any input

Security will be the land your buying or existing land you own. With at least 10% (20% may be required) cash in the bank too.
You can get a loand at 3.69% from BOI. There may be slightly better rate available but its approx the going rate.
You have to prove your repayment capacity. Be prepared to prove proof of income and expenditure

restive

bosallagh88 wrote: »

Folks I’m a young farmer with an off farm job I am interested in buying ap 30 acres of land near me. I am just inquiring before I make contact with the bank as to what the approximate interest rate will be collateral or security etc required etc thanks for any input

Boi require
Last 3 years sets of Certified Accounts
Have stuff like p60, 6 month bank statement. 3 months payslip.

Avatar MIA

Will you continue in full time employment after acquiring the land?

bosallagh88

Avatar MIA wrote: »

Will you continue in full time employment after acquiring the land?

Yes that’s the plan I’m a suckler cow farmer so

bosallagh88

Keep Sluicing wrote: »

Security will be the land your buying or existing land you own. With at least 10% (20% may be required) cash in the bank too.
You can get a loand at 3.69% from BOI. There may be slightly better rate available but its approx the going rate.
You have to prove your repayment capacity. Be prepared to prove proof of income and expenditure

Thanks for the reply what determines whether the purchased land or land you currently own is used as security?

Who2

bosallagh88 wrote: »

Yes that’s the plan I’m a suckler cow farmer so

Don’t tell the bank manager you’ve sucklers. They’ll know straight away your never going to have money.😂

Avatar MIA

bosallagh88 wrote: »

Thanks for the reply what determines whether the purchased land or land you currently own is used as security?

If you've the required 20% deposit only the land purchased should be security.

sea12

Keep Sluicing wrote: »

Security will be the land your buying or existing land you own. With at least 10% (20% may be required) cash in the bank too.
You can get a loand at 3.69% from BOI. There may be slightly better rate available but its approx the going rate.
You have to prove your repayment capacity. Be prepared to prove proof of income and expenditure

Are land loans gone that low. Thought it was closer to 5%

Mooooo

sea12 wrote: »

Are land loans gone that low. Thought it was closer to 5%

Banks costs of funds at the minute are very low. The margin could well be 3 or 3.5 and the current variable rate would be under 4. It's if the cost of funds rises repayments could increase a fair bit. Security and repayment capacity are what they look for.

cute geoge

as far as i know banks only value good land at €5000-6000/acre when used as security .So if used only the 30 acres you buy as security this can only secure €150k loan.

Green farmer

cute geoge wrote: »

as far as i know banks only value good land at €5000-6000/acre when used as security .So if used only the 30 acres you buy as security this can only secure €150k loan.

I’d believe that. They want to have themselves completely covered. Also heard banks charging up to 6.5%.

Keep Sluicing

sea12 wrote: »

Are land loans gone that low. Thought it was closer to 5%

The only reason i know that is that i just borrowed money 2 weeks ago for a land purchase. I was borrowing a small amount in relation to the acreage being bought, so that may have been a reason i got it so low. But i don't know other peoples rates to be honest.

sea12

Keep Sluicing wrote: »

The only reason i know that is that i just borrowed money 2 weeks ago for a land purchase. I was borrowing a small amount in relation to the acreage being bought, so that may have been a reason i got it so low. But i don't know other peoples rates to be honest.

Hope the land is lucky for you. Best of luck with the purchase.

Hagimalone

what is max amount of years you can put a land loan over

Mooooo

20

Fine Day

Keep Sluicing wrote: »

The only reason i know that is that i just borrowed money 2 weeks ago for a land purchase. I was borrowing a small amount in relation to the acreage being bought, so that may have been a reason i got it so low. But i don't know other peoples rates to be honest.

Sounds like you got an unsecured loan. Think they are up to 50K only.

Fine Day

Is brexit affecting land prices. The farmers journal recently said that land prices ere up in second half of the year. The 6% stamp duty makes a right c--t of it new.

Keep Sluicing

Theheff wrote: »

Sounds like you got an unsecured loan. Think they are up to 50K only.

No. I got a secured loan. Used my existing land as security. Borrowed more than 50k

Johnbkeane

Hi, I was chatting to an Agri Financial advisor for BOI and he told me it was 6.76% for an unsecured loan and with security it is 5.76%! This seems extremely high and I have land and s deposit saved up. How long ago was that??

Keep Sluicing wrote: »

Security will be the land your buying or existing land you own. With at least 10% (20% may be required) cash in the bank too.
You can get a loand at 3.69% from BOI. There may be slightly better rate available but its approx the going rate.
You have to prove your repayment capacity. Be prepared to prove proof of income and expenditure

Sacrolyte

Wonder how op got on?