‘Touch of boom activity evident in land sales amid uncertainty’

80sDiesel

Have heard first hand the massive demand now for housing with shorter lead times on sales. Has anyone experienced the same with land ?

https://www.agriland.ie/farming-news/touch-of-boom-activity-evident-in-land-sales-amid-uncertainty/

I says

80sDiesel wrote: »

Have heard first hand the massive demand now for housing with shorter lead times on sales. Has anyone experienced the same with land ?

https://www.agriland.ie/farming-news/touch-of-boom-activity-evident-in-land-sales-amid-uncertainty/

Credit unions are not minding anything above 50 grand, so investors are looking to invest.

roosterman71

Farm near me up for sale. 80 acres. Has turned down 1 million for it. Not near a town for development. No yard or sheds. It is in good order. No dairy people near to expand into. Permanent grassland. I think he was mad to turn that much down

Mad_maxx

roosterman71 wrote: »

Farm near me up for sale. 80 acres. Has turned down 1 million for it. Not near a town for development. No yard or sheds. It is in good order. No dairy people near to expand into. Permanent grassland. I think he was mad to turn that much down

ive only two acres ( keep a handful of sheep ) but keep an eye on prices , beit housing , commercial or farmland , any land i see where i live in galway rarely makes more than 7 k , is the above in a more dairy or tillage focused part of the country ?

i realise farm land in the likes of north dublin or north kildare will freely make well in excess of 15 k per acre

kk.man

Why wouldn't it go up in these times?

AIB started today to cut interest rates on all deposit accounts to zero. Plus they are looking at charging businesses and large deposit holders for money lying in accounts. The rest will follow.

It make sence now for even non farmers to invest in land.

Donald Trump

kk.man wrote: »

Why wouldn't it go up in these times?

AIB started today to cut interest rates on all deposit accounts to zero. Plus they are looking at charging businesses and large deposit holders for money lying in accounts. The rest will follow.

It make sence now for even non farmers to invest in land.

7.5% stamp duty for an illiquid asset which will provide a return of about 1-2% per year in a lot of cases (if you are lucky).



Not so much of an issue if you are looking for medium-long term. Some people probably doing it for estate planning but you can get the same reliefs with a business too.


A person with 100k who puts it into guaranteed state bonds will get their money back with a (small) bit of interest.

Investing in land might be a hedge against inflation. Or you might lose money if you know you will need it back within a specific timeframe.





How many years would you need to go before you were in "profit" if you invest in land as someone who has no actual use for it. Just as an investment to get a return and then sell.

Mad_maxx

kk.man wrote: »

Why wouldn't it go up in these times?

AIB started today to cut interest rates on all deposit accounts to zero. Plus they are looking at charging businesses and large deposit holders for money lying in accounts. The rest will follow.

It make sence now for even non farmers to invest in land.

you would think the hefty 7.5% stamp duty would put a lid on gains ?

Donald Trump

Mad_maxx wrote: »

you would think the hefty 7.5% stamp duty would put a lid on gains ?

Say a 5 year investor. Buys the land, pays 7.5% stamp duty, legal fees etc. Rents it for 5 years tax free at a yield of 1.5%.


Comes to the end of the 5 years. Wants to sell. The auctioneer is going to need to take his chunk out of that end of it as well.



The fella who puts his money into the state savings certificates will get a guaranteed 5% tax free.


You're probably looking at the saver doing better unless the land jumps around 10%. Which it might very well do. But it could also drop. That's a big risk for an investor that might need to exit at that time horizon.


And farm incomes could also likely drop with the Brexit/pandemic etc.

Mad_maxx

Donald Trump wrote: »

Say a 5 year investor. Buys the land, pays 7.5% stamp duty, legal fees etc. Rents it for 5 years tax free at a yield of 1.5%.


Comes to the end of the 5 years. Wants to sell. The auctioneer is going to need to take his chunk out of that end of it as well.



The fella who puts his money into the state savings certificates will get a guaranteed 5% tax free.


You're probably looking at the saver doing better unless the land jumps around 10%. Which it might very well do. But it could also drop. That's a big risk for an investor that might need to exit at that time horizon.


And farm incomes could also likely drop with the Brexit/pandemic etc.

The tax free rent on land is very good ,im just wondering if the stamp duty rate is a permanent lid on price increases?