Buy farmland or a investment property?

Tommyturf

hi all,

very much part time farming at the minute (grass to beef), circa 50k to invest (doing nothing in bank at min), whats your opinion on the above two? full time paye worker. cheers

3 the square

Farm land is only getting cheaper imno

arctictree

I got a letter from the bank yesterday stating that they will be charging negative interest rates from now on on balances. One of the main banks. They also stated that I can close my account if I wish.

Yet, they are charging me 8.65% interest on a personal load I have. Greedy feckers.

cute geoge

No doubt land but it has to be good land close to you and how often does this come up where as houses are 10 a penny

Panch18

arctictree wrote: »

I got a letter from the bank yesterday stating that they will be charging negative interest rates from now on on balances. One of the main banks. They also stated that I can close my account if I wish.

Yet, they are charging me 8.65% interest on a personal load I have. Greedy feckers.

Pay off the personal loan is the very best thing you can do with your money

JeffKenna

Tommyturf wrote: »

hi all,

very much part time farming at the minute (grass to beef), circa 50k to invest (doing nothing in bank at min), whats your opinion on the above two? full time paye worker. cheers

Depends if the land is close or not. 7 or 8 acres a good bit away is hardly worth the hassle.

Mad_maxx

arctictree wrote: »

I got a letter from the bank yesterday stating that they will be charging negative interest rates from now on on balances. One of the main banks. They also stated that I can close my account if I wish.

Yet, they are charging me 8.65% interest on a personal load I have. Greedy feckers.

Pay off that personal loan first , 8.65% is a lot more return than any property will yield ot at least any worthwhile property

awaywithyou

3 the square wrote: »

Farm land is only getting cheaper imno

Farmland up the road from Buford made 22k/acre in the last couple weeks... more land for sale around the same area and it supposed to b at 18k/acre at the moment

kerryjack

Don't think you would buy much land with 50k and buying an investment property you would only be a slave to the tenants they have all the power now. Could you add value to your home place, concrete land reclamation or build a large shed you could rent it out for storage or some one that wants to run a business from it.

Mooooo

Clear any high interest debt after that prob better to look at investing elsewhere, pension or stock market. Unless the land is boundsing your own place or puts you in a better position to join two parcels the return wouldn't be there in farmland

Tommyturf

Mooooo wrote: »

Clear any high interest debt after that prob better to look at investing elsewhere, pension or stock market. Unless the land is boundsing your own place or puts you in a better position to join two parcels the return wouldn't be there in farmland

no other debts bar the mortgage which is under control. leaning towards land over property for all of the reasons outlined above, thanks

3 the square

awaywithyou wrote: »

Farmland up the road from Buford made 22k/acre in the last couple weeks... more land for sale around the same area and it supposed to b at 18k/acre at the moment

Maybe, most farmers around my area are in there 70s or 80s with only relatives arein dublin America or uae you know what there going to do with it there will be some much land for sale in ten years it will be frightening there will be the best of land planted with forestry or abandoned

Say my name

It'll be very tough get farmland for 50k.

Reason is not many small lots like that come on the market at that price.
Even a site where I am in the country comes in more than that.

Timmaay

Say my name wrote: »

It'll be very tough get farmland for 50k.

Reason is not many small lots like that come on the market at that price.
Even a site where I am in the country comes in more than that.

Plus legal fees /stamp duty, will add best part of 10% onto the price.

Mad_maxx

Pay off the high interest loan and stick the rest in the IRES reit, gives you a share in prime Dublin residential property,plus a 4% plus dividend currently

No calls late at night looking for a broken shower to be fixed

Panch18

Tommyturf wrote: »

no other debts bar the mortgage which is under control. leaning towards land over property for all of the reasons outlined above, thanks

if it was me i'd clear the mortgage - there is a good sense of freedom when you don't have to answer to any bank - especially in the current uncertain world

1373

Tommyturf wrote: »

hi all,

very much part time farming at the minute (grass to beef), circa 50k to invest (doing nothing in bank at min), whats your opinion on the above two? full time paye worker. cheers

You’d get 2.5 acres. In Wexford for 50k . Buy it ,Sit back and let the good times roll

lakill Farm

Tommyturf wrote: »

hi all,

very much part time farming at the minute (grass to beef), circa 50k to invest (doing nothing in bank at min), whats your opinion on the above two? full time paye worker. cheers

property. steady return and maybe even a capital return also

Cattlepen

awaywithyou wrote: »

Farmland up the road from Buford made 22k/acre in the last couple weeks... more land for sale around the same area and it supposed to b at 18k/acre at the moment

Do u mind me asking you what part of the country this is in?
I had auctioneers telling me the best of Meath land in good heart and well fenced with good facilities would only make 15 k an acre

older by the day

3 the square wrote: »

Maybe, most farmers around my area are in there 70s or 80s with only relatives arein dublin America or uae you know what there going to do with it there will be some much land for sale in ten years it will be frightening there will be the best of land planted with forestry or abandoned

Exactly what a friend of mine said at a group meeting last year on about land abandonment. He gave 9000 an acre for very middling land this year. If someone is giving land away for free give me a pm please

lalababa

3 the square wrote: »

Maybe, most farmers around my area are in there 70s or 80s with only relatives arein dublin America or uae you know what there going to do with it there will be some much land for sale in ten years it will be frightening there will be the best of land planted with forestry or abandoned

Yeah..the smaller and marginal farms will be put up for sale or planted ..no two ways about it AFAIK/ can see.
Farmers are Old and no relative has much interest ...and why would they?

Cavanjack

Cattlepen wrote: »

Do u mind me asking you what part of the country this is in?
I had auctioneers telling me the best of Meath land in good heart and well fenced with good facilities would only make 15 k an acre

Good land in Meath can be bought for €9000 an acre.

Tommyturf

Tommyturf wrote: »

no other debts bar the mortgage which is under control. leaning towards land over property for all of the reasons outlined above, thanks

Would the 50k clear your mortgage, or if you put it into the mortgage how long would there be left on it?

Spanish Eyes

Where can one find land/farmland for sale please?

It’s just out of interest but it seems to be hidden!

Say my name

Spanish Eyes wrote: »

Where can one find land/farmland for sale please?

It’s just out of interest but it seems to be hidden!

It's next to the drinks aisle in Tesco.

patsy_mccabe

Spanish Eyes wrote: »

Where can one find land/farmland for sale please?

It’s just out of interest but it seems to be hidden!

https://www.daft.ie/ireland/commercial-property/agricultural-farm-land/

kollegeknight

Land beside me came up for sale for €85k- about 15acres with sheds.

I decided against it as if I had that money, an apartment in Ennis or shannon wouldn’t have been far from that price and around €600 income monthly- you’d never get that from a farm. Saying that both would cause hassle.

Semi glad I didn’t jump- the guy that bought it doesn’t believe in fences.

Cattlepen

Cavanjack wrote: »

Good land in Meath can be bought for €9000 an acre.

Would seem very cheap compared to what land is making around the country. Can anyone explain this

kerryjack

Cattlepen wrote: »

Would seem very cheap compared to what land is making around the country. Can anyone explain this

Maybe it's big acreage and than you come up with 9 K an acre I know a round my area they are a few local lads buying up every thing that comes up for sale, not enough hours in the day for them lads,
I lad is a right goer started off with sweet fucck all.

wrangler

Cattlepen wrote: »

Would seem very cheap compared to what land is making around the country. Can anyone explain this

If it's like Westmeath there isn't enough dairy farmers well enough set up yet to compete, There's a lot of new entrants, There's 24 acres beside me and It has been on the market three months, I hear it's not making €10000/acre.
A neighbour bought 40 acres of great land in two lots three years ago for about 8000/acre

Tommyturf

wrangler wrote: »

If it's like Westmeath there isn't enough dairy farmers well enough set up yet to compete, There's a lot of new entrants, There's 24 acres beside me and It has been on the market three months, I hear it's not making €10000/acre.
A neighbour bought 40 acres of great land in two lots three years ago for about 8000/acre

leaning towards land, houses are hassle and cant write tax off against it, plus the tax man has the best of any rent :rolleyes:

eire23

Tommyturf wrote: »

leaning towards land, houses are hassle and cant write tax off against it, plus the tax man has the best of any rent :rolleyes:

Only the intrest on a land load can be wrote off again tax I think. Or maybe I'm completely wrong in saying that

Grueller

eire23 wrote: »

Only the intrest on a land load can be wrote off again tax I think. Or maybe I'm completely wrong in saying that

Unfortunately you are correct.

Dinzee Conlee

Tommyturf wrote: »

leaning towards land, houses are hassle and cant write tax off against it, plus the tax man has the best of any rent :rolleyes:

Are you buying farmland to farm yourself and make money that way.
Or are you talking about buying farmland to rent out tax-free?

Mad_maxx

Cavanjack wrote: »

Good land in Meath can be bought for €9000 an acre.

I've cousins near kells and they tell me land in much of meath isn't remarkably expensive? , Dublin side obviously would be

I've only two acres myself ( feeds ten sheep) but I've a good bit of other kinds of property and the market in general interests me

Land in Westmeath always looks decent when I'm driving past but from newspaper reports, prices appear modest?

Big variance

awaywithyou

Mad_maxx wrote: »

I've cousins near kells and they tell me land in much of meath isn't remarkably expensive? , Dublin side obviously would be

I've only two acres myself ( feeds ten sheep) but I've a good bit of other kinds of property and the market in general interests me

Land in Westmeath always looks decent when I'm driving past but from newspaper reports, prices appear modest?

Big variance

Finest farm in the country Which is In Co. Meath Is up for Rent at the moment.. Finest farm with the very best of land..

Tommyturf

Dinzee Conlee wrote: »

Are you buying farmland to farm yourself and make money that way.
Or are you talking about buying farmland to rent out tax-free?

depends..if land was close to home id farm it myself, if not id lease it and keep it simple

Cattlepen

awaywithyou wrote: »

Finest farm in the country Which is In Co. Meath Is up for Rent at the moment.. Finest farm with the very best of land..

One of the finest farms in the country. There are some fantastic ranches in that neck of the woods

Cavanjack

awaywithyou wrote: »

Finest farm in the country Which is In Co. Meath Is up for Rent at the moment.. Finest farm with the very best of land..

Where about is it?

Panch18

awaywithyou wrote: »

Finest farm in the country Which is In Co. Meath Is up for Rent at the moment.. Finest farm with the very best of land..

Cattlepen wrote: »

One of the finest farms in the country. There are some fantastic ranches in that neck of the woods

any link so we can have a gawck and some good dreams this evening?

Mooooo

Tommyturf wrote: »

depends..if land was close to home id farm it myself, if not id lease it and keep it simple

Have you done the figures on the return you would get for the 50k?

awaywithyou

Panch18 wrote: »

any link so we can have a gawck and some good dreams this evening?

Dalgan Park Navan.... there is a sort of a walkin track around the farm thats open to the public.. Great spot and i used it many many times for a walk or run in the evenings when i staying in Navan.. thats a few years ago now... sadly.. its the very best of land.. then again have any of ye ever seen a big monastery like whats its in Dalgan Park built in a bog!


https://www.daft.ie/meath/commercial-property-for-rent/agricultural-farm-land-for-rent/dowdstown-farm-navan-meath-3121156/

It is without question one of the finest farms in the country

Cavanjack

awaywithyou wrote: »

Dalgan Park Navan.... there is a sort of a walkin track around the farm thats open to the public.. Great spot and i used it many many times for a walk or run in the evenings when i staying in Navan.. thats a few years ago now... sadly.. its the very best of land.. then again have any of ye ever seen a big monastery like whats its in Dalgan Park built in a bog!

https://www.daft.ie/meath/commercial-property-for-rent/agricultural-farm-land-for-rent/dowdstown-farm-navan-meath-3121156/

It is without question one of the finest farms in the country

I though a big dairy/spud man had that taken this last few years.

green daries

Cattlepen wrote: »

Do u mind me asking you what part of the country this is in?
I had auctioneers telling me the best of Meath land in good heart and well fenced with good facilities would only make 15 k an acre

Do you mind me asking everyone in general does anyone think land is worth anything close to these figures when it is used as its intended as in agricultural use of whatever type the farmers is involved in

Panch18

awaywithyou wrote: »

Dalgan Park Navan.... there is a sort of a walkin track around the farm thats open to the public.. Great spot and i used it many many times for a walk or run in the evenings when i staying in Navan.. thats a few years ago now... sadly.. its the very best of land.. then again have any of ye ever seen a big monastery like whats its in Dalgan Park built in a bog!


https://www.daft.ie/meath/commercial-property-for-rent/agricultural-farm-land-for-rent/dowdstown-farm-navan-meath-3121156/

It is without question one of the finest farms in the country

smashing place - very few places like that in the country

the owner will get a nice income from it - nearly 150k for rent and SFP - 40k of which is tax free - worse ways to make a living!!!

Mooooo

Are the facilities there to stock it without having to add more. 300 an acre + sfp. Wouldn't be quick to go for it tbh. The rent would buy 200+ acres

Tileman

Panch18 wrote: »

smashing place - very few places like that in the country

the owner will get a nice income from it - nearly 150k for rent and SFP - 40k of which is tax free - worse ways to make a living!!!

Think if I had that sort of money I’d be buying me own land and not lining sone one else pocket.

Donald Trump

Tileman wrote: »

Think if I had that sort of money I’d be buying me own land and not lining sone one else pocket.

If the timing suited you in terms of you were just about to expand up anyway it might be well worth shifting over there and putting in 15 years hard work.


Seems already set up with 330 cubicles etc.


I wonder how they'd work it though in terms of repairs etc. I'd assume it's on some kind of "do whatever you want with it but we need it back in the same condition" kind of thing.



Plenty of lads the last few years with no experience at anything dairying getting loans for hundreds of thousands to jump blindly into it headfirst. Might be better off heading over there for the 15 years, building up your herd at the start, save up your money and then spend the last few years getting your own place ready to move back. That might have included either buying up a bit or building up a bit.


Or just do the 15 years and then retire!

Donald Trump

Mooooo wrote: »

Are the facilities there to stock it without having to add more. 300 an acre + sfp. Wouldn't be quick to go for it tbh. The rent would buy 200+ acres

As for the rent buying 200 acres of land ........ don't forget the tax! You're 120k a year becomes more like 60k a year in order for it to hit your pocket which is where you need to take it from in order to buy land.


60k a year for 15 years = 900k.


If you want to take interest rates into account (suppose 3% net of tax), then if you started with a debt of 678k and wanted to pay it back over 15 years then you'd be paying 60k a year.

Of course in the latter you'd have the asset at the end of it. You'd maybe pick up 60 acres on average. But you aren't going to make that 120k a year profit from your 60 acres to pay for it. Not unless you are growing special flavours for Keoghs crisps on it! If you rented the ready-to-go place and ran it properly, you might have a chunk at the end of it to go off and buy somewhere

older by the day

I suppose if we think about it, let out payments. How many years would it take to pay back 10000 an acre. You can rule out beef and suckling and unless you can graze the dairy cow on it that's a long shot too. So it's investing money you have really

awaywithyou

Donald Trump wrote: »

As for the rent buying 200 acres of land ........ don't forget the tax! You're 120k a year becomes more like 60k a year in order for it to hit your pocket which is where you need to take it from in order to buy land.


60k a year for 15 years = 900k.


If you want to take interest rates into account (suppose 3% net of tax), then if you started with a debt of 678k and wanted to pay it back over 15 years then you'd be paying 60k a year.

Of course in the latter you'd have the asset at the end of it. You'd maybe pick up 60 acres on average. But you aren't going to make that 120k a year profit from your 60 acres to pay for it. Not unless you are growing special flavours for Keoghs crisps on it! If you rented the ready-to-go place and ran it properly, you might have a chunk at the end of it to go off and buy somewhere

looks like you'll have plenty of spare time on your hands come the 1st Feb so we might see you pulling tits in Navan yet...