Could someone explain the reasons for high land leasing prices?

KTBFFH

Price of leasing land has gone well up, and some of the stories on here sound mad. Prices people are giving they'd seem to be better of buying.

So what's the deal? Is there something I'm not aware of, or completely missing that there is such value in leasing land?

wrangler

KTBFFH wrote: »

Price of leasing land has gone well up, and some of the stories on here sound mad. Prices people are giving they'd seem to be better of buying.

So what's the deal? Is there something I'm not aware of, or completely missing that there is such value in leasing land?

Dairy cows grossing €3000 in milk and calf sales I guess,
At a cow to the acre, 300+/acre isn't dear,
Like lamb prices I hope it continues.
However high prices cure high prices eventually

Mooooo

Even if the calf sold for 200 euro that would be each cow averaging 7k litres at 40 cent for the year wrangler, way off in your figures there wrangler, don't know anyone near that level of performance
Differs from area to area, plenty lads saying dairy is driving it up, down here any decent ground and tillage men will blow anyone out of the water, have heard of beef lads doing the same so whether they know something the rest of us don't I have no clue. Anyone who thinks 300 is cheap fairplay to em cos I wouldn't be paying it

wrangler

Mooooo wrote: »

Even if the calf sold for 200 euro that would be each cow averaging 7k litres at 40 cent for the year wrangler, way off in your figures there wrangler, don't know anyone near that level of performance
Differs from area to area, plenty lads saying dairy is driving it up, down here any decent ground and tillage men will blow anyone out of the water, have heard of beef lads doing the same so whether they know something the rest of us don't I have no clue. Anyone who thinks 300 is cheap fairplay to em cos I wouldn't be paying it

You do now

https://www.agriland.ie/farming-news/a-reliable-alternative-protein-source/

One of my tenants is reputed to have given 16000 for 50 acres last week

Hard Knocks

Around here there’s a big push from Dairy farmers and young farmers
30ac with 2k entitlement making 10k
Other years it would make 3-3.5k

wrangler

Hard Knocks wrote: »

Around here there’s a big push from Dairy farmers and young farmers
30ac with 2k entitlement making 10k
Other years it would make 3-3.5k

Most farmers don't want entitlements as they have their own, That 30 acres could've made more without them

Mooooo

wrangler wrote: »

You do now

https://www.agriland.ie/farming-news/a-reliable-alternative-protein-source/

One of my tenants is reputed to have given 16000 for 50 acres last week

Wouldn't put you down to believe everything you read, esp from an ad. Even at that performance his costs would be high in such a system, and far from average. Crazy prices are being paid but I dunno how lads are doing it, tillage man paying 350 not far from here supposedly, and this wouldnt be tillage country, grueller had beef lads paying similar in his part of the world if we wre to generalise like yourself all farming is flying it...

KTBFFH

wrangler wrote: »

Most farmers don't want entitlements as they have their own, That 30 acres could've made more without them

Have found the same around here that most farmers don't want the entitlements. Offers were about the same with or without entitlements so was a no-brainer to lease them seperately.
Wouldn't be a big dairy area either.

wrangler

KTBFFH wrote: »

Have found the same around here that most farmers don't want the entitlements. Offers were about the same with or without entitlements so was a no-brainer to lease them seperately.
Wouldn't be a big dairy area either.

Just that it's tax free if you can set them with the land.
It's a no brainer now to be farming your land with what's available.
As I said before High prices will eventually fall, always happens.

Birdnuts

Another asset bubble in the making...as discussed on another thread the price of everything is "frothy" atm

cute geoge

I have a small bit of ground rented for silage with maps for the last 15 years on a yearly basis paying 180 cash as your man is on the welfare .He informed me last week it was my last year as it will 400 plus an acre in future and this is heavy not arable land .So it will get a good dose of urea this year for 3 cuts of silage .a joke really as I could buy silage cheaper but will need to rustle up maps from some where .Land would be cheaper buy at 20k /acre

KTBFFH

wrangler wrote: »

Just that it's tax free if you can set them with the land.
It's a no brainer now to be farming your land with what's available.
As I said before High prices will eventually fall, always happens.

Yeah I get you, but the entitlements on it are not huge and the difference is made up in the price of new lease. They now just feel like a small add-on. Also leaves more room to move them around each year, especially with the uncertainty of what 2023 will bring.



I take your point, but I might argue it's actually a no-brainer to be leasing out at the current high prices, take them tax free while you can. Unless you have a large investment and hold already. Significant investment needed to get some skin in the game today, with an unsure future.

K.G.

Anyone care to do a boom bust cycle in irish faring with the last 30 or 40 years.my reckoning in
71,72,73 recession
75 on to 81/82 boom
83 up to introduction subs 87/88?crash
Boom up to mid 90s boom in sucklers and beef premium s
00s doldrums until we see consolidation in dairy towards end of decade and promise of quota removal leading to boom which may peak at the end of this year.any comment s

Grueller

Mooooo wrote: »

Wouldn't put you down to believe everything you read, esp from an ad. Even at that performance his costs would be high in such a system, and far from average. Crazy prices are being paid but I dunno how lads are doing it, tillage man paying 350 not far from here supposedly, and this wouldnt be tillage country, grueller had beef lads paying similar in his part of the world if we wre to generalise like yourself all farming is flying it...

Actually that beef man paid €450

wrangler

KTBFFH wrote: »

Yeah I get you, but the entitlements on it are not huge and the difference is made up in the price of new lease. They now just feel like a small add-on. Also leaves more room to move them around each year, especially with the uncertainty of what 2023 will bring.



I take your point, but I might argue it's actually a no-brainer to be leasing out at the current high prices, take them tax free while you can. Unless you have a large investment and hold already. Significant investment needed to get some skin in the game today, with an unsure future.

If you lease entitlements out with land the payment is tax free.
If you claim on your entitlements yourself, you're not exempt from income tax

KTBFFH

wrangler wrote: »

If you lease entitlements out with land the payment is tax free.
If you claim on your entitlements yourself, you're not exempt from income tax

If you lease the entitlements out and lease the land out seperately for 5+ years, you're only liable for income tax on the entitlements.

wrangler

KTBFFH wrote: »

If you lease the entitlements out and lease the land out seperately for 5+ years, you're only liable for income tax on the entitlements.

yea, that's right

KTBFFH

wrangler wrote: »

yea, that's right

I just find it hard to see the real benefit there at such high prices. Medium to decent land in the Mid-West region with little dairy, spud or solar bidders went from 250/acre to 285/ac in 5 years. Plus entitlements are now removed from that. Tough going on farmers, while armchair farmers can sit back, tax free. Will be interesting to see where it goes from here in the next couple of years.

green daries

Grueller wrote: »

Actually that beef man paid €450

It's easily 200 acre in the west now beef and sheep mostly driving it a lot are young farmers and partnerships the few really high ones locally are lads working In good jobs

wrangler

KTBFFH wrote: »

I just find it hard to see the real benefit there at such high prices. Medium to decent land in the Mid-West region with little dairy, spud or solar bidders went from 250/acre to 285/ac in 5 years. Plus entitlements are now removed from that. Tough going on farmers, while armchair farmers can sit back, tax free. Will be interesting to see where it goes from here in the next couple of years.

There was something needed to encourage leasing, It was the tax free concession that encouraged me. I could've carried on at minimum stocking rate and collect subsidies

minerleague

wrangler wrote: »

There was something needed to encourage leasing, It was the tax free concession that encouraged me. I could've carried on at minimum stocking rate and collect subsidies

Happy with your decision? Have you interests outside farming ?. Often thought of leasing out but not sure what I'd do , reckon the farming keeps me somewhat sane!.

wrangler

minerleague wrote: »

Happy with your decision? Have you interests outside farming ?. Often thought of leasing out but not sure what I'd do , reckon the farming keeps me somewhat sane!.

Yea, it was a big decision but my health decided, I had no interests outside farming apart from IFA which finished on retirement. We used to breed pedigree sheep too and go to shows with them,
I'm delighted with retirement, we've 80 commercial ewes and I do any fencing and maintenance on the farm so wouldn't be busy and wouldn't be idle.
Tenants are very good too

Dinzee Conlee

minerleague wrote: »

Happy with your decision? Have you interests outside farming ?. Often thought of leasing out but not sure what I'd do , reckon the farming keeps me somewhat sane!.

wrangler wrote: »

Yea, it was a big decision but my health decided, I had no interests outside farming apart from IFA which finished on retirement. We used to breed pedigree sheep too and go to shows with them,
I'm delighted with retirement, we've 80 commercial ewes and I do any fencing and maintenance on the farm so wouldn't be busy and wouldn't be idle.
Tenants are very good too

Leased out some of our ground a few years ago...

Financially, the tax free element made it a no brainer. More money for less time worked...

I had a young family plus full time job, so time was an issue. The missus also wanted to take some time out with the kids for a few years.

Like Wrangler, no interests outside farming really. I kept a few fields around the house. I buy a few store lambs, its a hobby. It makes a small bit of money, but its enough to get me out and about most days, keeps the interest I guess...
Would also have an excellent tenant. Treats the place well, and pays on the day its due every time... So its very hassle free...

Overall, happy with leasing. Working out for us for now anyways.


Edit : I should say, I was only part time farming before this, so maybe not so much of a change as Wrangler, being full time...

Sami23

I'm leasing land here for about €135 an acre so going by what ye are saying here that's a good price

jd_12345

cute geoge wrote: »

I have a small bit of ground rented for silage with maps for the last 15 years on a yearly basis paying 180 cash as your man is on the welfare .He informed me last week it was my last year as it will 400 plus an acre in future and this is heavy not arable land .So it will get a good dose of urea this year for 3 cuts of silage .a joke really as I could buy silage cheaper but will need to rustle up maps from some where .Land would be cheaper buy at 20k /acre

That’s an exaggeration there now in fairness. 400 an acre assuming no inflation takes 50 years to get back its value. Buy a house for 300k and get 1300 a month in rent takes 19 years to pay back. I know which I’d invest in...

KTBFFH

jd_12345 wrote: »

That’s an exaggeration there now in fairness. 400 an acre assuming no inflation takes 50 years to get back its value. Buy a house for 300k and get 1300 a month in rent takes 19 years to pay back. I know which I’d invest in...

I think you are finding yourself with an exaggeration there now too. Income on profit of a house rented is taxed at 40%. Add to that repairs, wear and tear, insurance, auctioneer fees, PRTB registration, property tax. And that is all assuming you have good tennants, constantly renting for 19 years, which seems unlikely.
Plus at 1,300/month you would not even be eligible for rent a room scheme. Leasing land does not affect your day to day life. Living with people renting out rooms for 19 years is very different, and not something most people or families would desire, I imagine.
It's not to say house isn't a better investment, just its much more highly caveated than you are claiming.

jd_12345

KTBFFH wrote: »

I think you are finding yourself with an exaggeration there now too. Income on profit of a house rented is taxed at 40%. Add to that repairs, wear and tear, insurance, auctioneer fees, PRTB registration, property tax. And that is all assuming you have good tennants, constantly renting for 19 years, which seems unlikely.
Plus at 1,300/month you would not even be eligible for rent a room scheme. Leasing land does not affect your day to day life. Living with people renting out rooms for 19 years is very different, and not something most people or families would desire, I imagine.
It's not to say house isn't a better investment, just its much more highly caveated than you are claiming.

Oh I'm not saying investing in property is easy money either but people think that buying land to rent out pays. It doesn't. Renting out houses isn't easy money either. Wearing the t-shirt of a money pit of a rental house here too.

A bad land tenant will do enough harm to a farm, as much as a bad house tenant.
I'm not sure I get your point re renting a room. I'm talking about buying a house with the sole purpose of renting and comparing it with buying a farm with the sole purpose of renting (not your original point I appreciate)
No renting is straightforward.
The main reason land is such a valuable asset imo is its protection against inflation(very basic economic understanding), the fact they're not making any more of it and the obsession with land ownership.
Btw I'm obsessed with owning land too but someone looking from the outside in would say its silly

KTBFFH

jd_12345 wrote: »

Oh I'm not saying investing in property is easy money either but people think that buying land to rent out pays. It doesn't. Renting out houses isn't easy money either. Wearing the t-shirt of a money pit of a rental house here too.

A bad land tenant will do enough harm to a farm, as much as a bad house tenant.
I'm not sure I get your point re renting a room. I'm talking about buying a house with the sole purpose of renting and comparing it with buying a farm with the sole purpose of renting (not your original point I appreciate)
No renting is straightforward.
The main reason land is such a valuable asset imo is its protection against inflation(very basic economic understanding), the fact they're not making any more of it and the obsession with land ownership.
Btw I'm obsessed with owning land too but someone looking from the outside in would say its silly

Points taken.
Bad tenants on either are obviously not good, but there is a lot more consistent work involved in a rental house. That is my experience from renting out both land and a house anyway.
With land: fencing, water and possibly pen work to be undertaken before lease starts. After that, you can sit back quite a bit for years of a lease once you have a good, clear agreement and farmer that knows the limits, plus knowing the income is tax-free. Much easier break a lease a farmer is not abiding by than moving bad tenants out, that's for sure.

I find, even with good tennants, you're bound to be getting phone calls and requests for this, that and the other when its a house. Yes they are entitled to request a relacement cooker or something. But drives me mad when they come calling to change lights, fix small jobs, and ask me 3 times in a fortnight to come down and unblock the sewage system! (Yes, this really happened, had to put my foot down the last time and explain the family were throwing down too much paper and wipes and was no longer my issue)



My point on the rent a room was you can get up to 14,000 tax free if you rent out rooms you as a landlord live in. But renting out a whole house will be liable for the 40% rate. I wasn't sure which you meant so I included both.
Personally, I'd invest in land again before a house. Just not at the current prices.

jd_12345

KTBFFH wrote: »

Points taken.
Bad tenants on either are obviously not good, but there is a lot more consistent work involved in a rental house. That is my experience from renting out both land and a house anyway.
With land: fencing, water and possibly pen work to be undertaken before lease starts. After that, you can sit back quite a bit for years of a lease once you have a good, clear agreement and farmer that knows the limits, plus knowing the income is tax-free. Much easier break a lease a farmer is not abiding by than moving bad tenants out, that's for sure.

I find, even with good tennants, you're bound to be getting phone calls and requests for this, that and the other when its a house. Yes they are entitled to request a relacement cooker or something. But drives me mad when they come calling to change lights, fix small jobs, and ask me 3 times in a fortnight to come down and unblock the sewage system! (Yes, this really happened, had to put my foot down the last time and explain the family were throwing down too much paper and wipes and was no longer my issue)



My point on the rent a room was you can get up to 14,000 tax free if you rent out rooms you as a landlord live in. But renting out a whole house will be liable for the 40% rate. I wasn't sure which you meant so I included both.
Personally, I'd invest in land again before a house. Just not at the current prices.

I know how you feel- blocked drains, no water, the list goes on. Imo if the house is set up right though that will be minimised. House values are volatile too is a big problem and I'm not sure how long rental prices will keep going.

However, I see many circumstances where the only land worth buying to rent is costing 15k +. Otherwise the market just ain't there for the land rental. There's auctioneer fees with land rental too and fussy tenants paying high rent around here demand good facilities and new reseeding the year they move in. If you netted €250 per acre on rent on €15k per acre ground you'd be doing well from what I can see. (1.6% return)
I'm not sure are high land prices driving high rental prices or vice versa or both but it doesn't seem to be stopping anywhere- especially in good areas. Poorer ground is beginning to struggle more from what I can see.

If i had the cash in the morning I'd buy more land and farm it but the sums just don't add up to buy to lease.

Curious Geroge

What counties are yee in lads ? Galway silage ground can't get €100 an acre

wrangler

jd_12345 wrote: »

I know how you feel- blocked drains, no water, the list goes on. Imo if the house is set up right though that will be minimised. House values are volatile too is a big problem and I'm not sure how long rental prices will keep going.

However, I see many circumstances where the only land worth buying to rent is costing 15k +. Otherwise the market just ain't there for the land rental. There's auctioneer fees with land rental too and fussy tenants paying high rent around here demand good facilities and new reseeding the year they move in. If you netted €250 per acre on rent on €15k per acre ground you'd be doing well from what I can see. (1.6% return)
I'm not sure are high land prices driving high rental prices or vice versa or both but it doesn't seem to be stopping anywhere- especially in good areas. Poorer ground is beginning to struggle more from what I can see.

If i had the cash in the morning I'd buy more land and farm it but the sums just don't add up to buy to lease.

We're into a scenario now if you had the sort of money needed to buy land, the bank will charge for keeping it. 1.6% tax free is better than that. Tenants in land can't really do much harm to it especially if you set it with low fertility indexes

jd_12345

wrangler wrote: »

We're into a scenario now if you had the sort of money needed to buy land, the bank will charge for keeping it. 1.6% tax free is better than that. Tenants in land can't really do much harm to it especially if you set it with low fertility indexes

Fair point. It's an easy passive investment where you have the right ground. Land values match inflation and the rent is your tax free return. I dont see valuable ground making low rent or low value ground making high rents. The problem with low value ground is to find a taker for it. Theres two plots of 100 acres up for rent of poor ground and there is no take for it. Not 100% sure of the price they're looking for but its idle atm so I'd assume any sensible land owner would bite at an offer if it were given. Theres so much land quality variation within 10km of here from 20k per acre flat rich sheltery ground to rock and furse and bog. This would be dairy country and while there was expansion was 15-18/19 it seems to have stagnated and most lads are happy with their lot.
If you're buying run down ground most tenants around here expect a few years free rent to do up the place (rightly so) have long term leases and let the place slide in the last few leases pre renewal. Imo if I was a tenant thats what Id do too as youre paying on the double for any improvements with paying for them and then paying increased rent for what is perceived as better ground.
If a tenant drops out in February for uncontrolled circumstances the landlord is at the mercy of a volatile market imo.

I suppose my point is that if you want a return on money buying land to rent wont pay. Most dairy lads with spare cash will either buy ground to farm, improve facilities or invest it off farm from what I can see. Those lads are few and far between from what I can see though.

wrangler

jd_12345 wrote: »

Fair point. It's an easy passive investment where you have the right ground. Land values match inflation and the rent is your tax free return. I dont see valuable ground making low rent or low value ground making high rents. The problem with low value ground is to find a taker for it. Theres two plots of 100 acres up for rent of poor ground and there is no take for it. Not 100% sure of the price they're looking for but its idle atm so I'd assume any sensible land owner would bite at an offer if it were given. Theres so much land quality variation within 10km of here from 20k per acre flat rich sheltery ground to rock and furse and bog. This would be dairy country and while there was expansion was 15-18/19 it seems to have stagnated and most lads are happy with their lot.
If you're buying run down ground most tenants around here expect a few years free rent to do up the place (rightly so) have long term leases and let the place slide in the last few leases pre renewal. Imo if I was a tenant thats what Id do too as youre paying on the double for any improvements with paying for them and then paying increased rent for what is perceived as better ground.
If a tenant drops out in February for uncontrolled circumstances the landlord is at the mercy of a volatile market imo.

I suppose my point is that if you want a return on money buying land to rent wont pay. Most dairy lads with spare cash will either buy ground to farm, improve facilities or invest it off farm from what I can see. Those lads are few and far between from what I can see though.

I went for the long lease because I fully expect them to lower the inputs and I'll probably spread lime and 0 10 20 at the end. Only one out of the three tenants reseeded but because it was grazed by sheep it was a fairly good sward any way

bosallagh88

I think a lot of the time when land hits the estate agents or paper it’s often someone from outside the local area with higher value entitlements that bids highest but often the landowner wants half the value back how would taking land like that ever pay ?

farawaygrass

Curious Geroge wrote: »

What counties are yee in lads ? Galway silage ground can't get €100 an acre

Just to rent on a yearly basis or longer term lease? I was told 160 plus for land around my area of Galway, 160 being cheap

kevthegaff

30 acres in mid tipp, rang auctioneer at 300 an acre after a day

Sami23

kevthegaff wrote: »

30 acres in mid tipp, rang auctioneer at 300 an acre after a day

Crazy money.
Presume Dairy or Tillage be the ones in for it

wrangler

kevthegaff wrote: »

30 acres in mid tipp, rang auctioneer at 300 an acre after a day

A neighbour couldn't get more than €200/acre for conacre, she was after spending €10000 on fencing (25 acres) on the land and was disappointed.
On my advice now she's going for a five year lease, so it'll be interesting to see if that makes any difference. It's very good land

Reggie.

wrangler wrote: »

A neighbour couldn't get more than €200/acre for conacre, she was after spending €10000 on fencing (25 acres) on the land and was disappointed.
On my advice now she's going for a five year lease, so it'll be interesting to see if that makes any difference. It's very good land

Oh that'll jump now.

Curious Geroge

farawaygrass wrote: »

Just to rent on a yearly basis or longer term lease? I was told 160 plus for land around my area of Galway, 160 being cheap

Part time myself, just keeping it ticking over. I looked at the revenue related long term lease a couple of years ago. Advertised in the journal but the few enquiries I got were all about €180 per arce, but that included the BPS which avg down the per arce rate to <€50. So sticking with part time, I looked to sell a few acres for silage but at €70 it did'nt seem worthwhile so will save some hay and sell it.

KTBFFH

42 acres in East Galway gone on a 5 year lease at 225/acre. That's without entitlements

Hard Knocks

KTBFFH wrote: »

42 acres in East Galway gone on a 5 year lease at 225/acre. That's without entitlements

Bare ground will make more than land set with entitlement

An Ri rua

KTBFFH wrote: »

I think you are finding yourself with an exaggeration there now too. Income on profit of a house rented is taxed at 40%. Add to that repairs, wear and tear, insurance, auctioneer fees, PRTB registration, property tax. And that is all assuming you have good tennants, constantly renting for 19 years, which seems unlikely.
Plus at 1,300/month you would not even be eligible for rent a room scheme. Leasing land does not affect your day to day life. Living with people renting out rooms for 19 years is very different, and not something most people or families would desire, I imagine.
It's not to say house isn't a better investment, just its much more highly caveated than you are claiming.

How would you be eligible for the rent a room scheme if you've rented the house out?
If you're renting a room (licencees, not tenants by the way), and the rent exceeds the maximum, you can just claim the maximum. It's even more cavéated than you are claiming with your alternative facts
You don't add repairs, wear and tear, insurance, auctioneer fees, PRTB registration. You deduct them before the income tax. You might add them in a double entry sense, in your head, but they're (subject to criteria) deductible. E.g. wear and tear /white goods @12.5% pa over 8 years i.e. €4000 capital allowance. It's a little more caveated...

KTBFFH

An Ri rua wrote: »

How would you be eligible for the rent a room scheme if you've rented the house out?
If you're renting a room (licencees, not tenants by the way), and the rent exceeds the maximum, you can just claim the maximum. It's even more cavéated than you are claiming with your alternative facts

If you bothered to read the next comments, that was clered up, keep on topic please or move over to accomodation and prorpety forum to share your wisdom.

I never claimed to be a solicitor giving advice, Boards is a discussion forum.

An Ri rua

KTBFFH wrote: »

If you bothered to read the next comments, that was clered up, keep on topic please or move over to accomodation and prorpety forum to share your wisdom.

I never claimed to be a solicitor giving advice, Boards is a discussion forum.

Only following your lead horse. Were you off topic by any chance?
Tax by the way, not law.

We rented 4 acres for only €150/ac conacre recently but it's the same lad and it's less hassle for the year that's in it.

Donald Trump

wrangler wrote: »

We're into a scenario now if you had the sort of money needed to buy land, the bank will charge for keeping it. 1.6% tax free is better than that. Tenants in land can't really do much harm to it especially if you set it with low fertility indexes

That makes sense if you are looking at medium or long term. If you buy the land from cash in pocket, get 1.6% tax free per year on it for 5 years and go to sell it, you're probably going to need a little bit of capital appreciation to get you started with back into the bank.

wrangler

Donald Trump wrote: »

That makes sense if you are looking at medium or long term. If you buy the land from cash in pocket, get 1.6% tax free per year on it for 5 years and go to sell it, you're probably going to need a little bit of capital appreciation to get you started with back into the bank.

I probably should've bought more land but no one really saw this 300+/acre scenario coming. because of my age my money is in low risk funds (which is what land is too) and is only averaging about 3% before tax so it's really case equal

K.G.

wrangler wrote: »

I probably should've bought more land but no one really saw this 300+/acre scenario coming. because of my age my money is in low risk funds (which is what land is too) and is only averaging about 3% before tax so it's really case equal

Is farming just following the trends in other businesses where companies don't tie up capital in property that could be used better in the business and property owership is for people with capital to invest such as pension fund s etc

wrangler

K.G. wrote: »

Is farming just following the trends in other businesses where companies don't tie up capital in property that could be used better in the business and property owership is for people with capital to invest such as pension fund s etc

I've been thinking that myself for a while, I was in NZ in 2018 on a farm tour and saw all the young fellows renting farms. I came home fully convinced I should buy land. ....... however I didn't have the courage of my convictions.

jd_12345

I’ll say something now that probably sounds a bit harsh but I think one of the main reasons land “seems “ dear is cause if it wasn’t it everyone would be buying it. Have to remember long ago it was as hard if not harder to gather the price of a farm. Yes I know 100 bullocks would buy a good farm back then but very very very very few people had 100 bullocks. I would almost think it’s easier to buy ground now than it was long ago. Everyone has an increased standard of living nowadays - just some people see expansion as being the only measure of progression

Donald Trump

wrangler wrote: »

I probably should've bought more land but no one really saw this 300+/acre scenario coming. because of my age my money is in low risk funds (which is what land is too) and is only averaging about 3% before tax so it's really case equal

The main advantage with your funds is the liquidity. You can sell 1% of them tomorrow if you needed to. And the price is the price.



For the tax free rental - that isn't guaranteed to persist forever. What is more likely to persist longer are the tax advantages for putting money into pension funds.