Will Land Prices Drop

Laura2021

Hi do you think land will still be expenses to buy in the further or will it . I know it depends on where the land is and once you can build on it becomes more valuable.

amacca

Laura2021 wrote: »

Hi do you think land will still be expenses to buy in the further or will it . I know it depends on where the land is and once you can build on it becomes more valuable.

Over what kind of timescale are you asking....the further into the future you look the more uncertainty there is.

Laura2021

amacca wrote: »

Over what kind of timescale are you asking....the further into the future you look the more uncertainty there is.

Well say In 20 years time I would be looking to sell a bit of land for a good amount considering it has only got more expensive over the last 60 years can't see it being as cheap as it was to buy when my grandparents did.

liam7831

They are not making anymore of it

kevthegaff

We have got to the stage alot of bon farmers are buying land as a safe investment. I have a feeling when this cap has settled and lads realise how little theyl get, more land will come on the market for rent. As farmer isnt easy, looking at the way other jobs are going, work from home etc I think wel see in reduction in rents and land prices in the next 5 years

ruwithme

It'll be getting dearer. That's the direction of travel in our country.

Lmkrnr

Id like to buy a site for allotments and a summer garden. If its 12k an acre where can a man find such land. All the site's on estate agents are with PP and sky high.

cute geoge

Is n't the problem you need to increase your land area to almost stay in business ,like with the new nitrate stocking rate with dairy .One of my landlords has informed it my last year for renting on conacre silage and he is expecting E400/acre for heavy average quality ground in future .I would say 20k/acre to purchase will be the norm in any intensive ag. area .Renting/leasing is dead money like I having some ground rented with 20 years and that rent money would have a good share of repayments made .A small parcell of rough heavy ground made north of 13k/acre and guess another grand /acre to drain and reseed .What good is 34c/litre or E4 base for cattle when land inflation has eaten up any increase

Hard Knocks

Laura2021 wrote: »

Well say In 20 years time I would be looking to sell a bit of land for a good amount considering it has only got more expensive over the last 60 years can't see it being as cheap as it was to buy when my grandparents did.

The value might not of been to high compared to today but it would of been hard work raising the capital back then

JeffKenna

Laura2021 wrote: »

Well say In 20 years time I would be looking to sell a bit of land for a good amount considering it has only got more expensive over the last 60 years can't see it being as cheap as it was to buy when my grandparents did.

Who knows, if your grandparents had sold the land for £3,000 an acre in the 70's, adjusting for inflation that's probably as much as it's worth today.

148multi

Laura2021 wrote: »

Well say In 20 years time I would be looking to sell a bit of land for a good amount considering it has only got more expensive over the last 60 years can't see it being as cheap as it was to buy when my grandparents did.

My father bought 20 acers in the 50's for 500, he buried one of his parents that same year and the costs of the undertakers was 500.
You can't compare the price of land to anything else, with tighter rules the need for more acers or map acers will in the short term push the price up. Some people feel safer to invest in land than shares, but in reality there isn't much difference.
Changing trends in food consumption may have a big influence, but it may not.
Government decisions will probably have bigger influence on land prices but who knows what will happen, not many seen the price increase in sheep meat one year ago.
Have a friend who bought land in 1980 and got into bother with high interest rates, it was sold a few years later for 1/3 the price.
With the way countries are printing money inflation has to be around the corner, that will have the biggest effect with the debt load per cow, if the price of milk went below 20c combined a rate rise?
Hope you get a chance at your realising your dream.

1373

You’ll rarely hear a purchaser say they got cheap land

yabadabado

148multi wrote: »

My father bought 20 acers in the 50's for 500, he buried one of his parents that same year and the costs of the undertakers was 500.

That was one very expensive funeral .
Iirc the rule of thumb from 1950/60s is £1 would be worth 20/25 times that today.

jimmy G M

Hard Knocks wrote: »

The value might not of have been to high compared to today but it would of have been hard work raising the capital back then

Sorry to be pedantic here but this is something that drives me nuts.... "would of" makes no sense.

_Brian

jimmy G M wrote: »

Sorry to be pedantic here but this is something that drives me nuts.... "would of" makes no sense.

Yea.
But let’s not be grammar nazis either. Not everyone is as learned as others. Parts of the country have different turns of phrase.

Just roll with it.

Laura2021

Laura2021 wrote: »

Well say In 20 years time I would be looking to sell a bit of land for a good amount considering it has only got more expensive over the last 60 years can't see it being as cheap as it was to buy when my grandparents did.

Who thinks about 20 years down the line?

Why not live in the moment?

Donald Trump

Two things might very quickly take the heat out of the market due to external "investors"

1) An increase in stamp duty
2) Removal, or decrease, of the income tax exemption for 5+ year land leases

148multi

Donald Trump wrote: »

Two things might very quickly take the heat out of the market due to external "investors"

1) An increase in stamp duty
2) Removal, or decrease, of the income tax exemption for 5+ year land leases

Also I know of people buying land as a low tax method for passing on wealth.

SuperTortoise

I think the bubble will burst, but i've been saying that for years!

I think we are entering a stage of really big inflation, i guess people are flocking to land as a safe haven.

Donald Trump

148multi wrote: »

Also I know of people buying land as a low tax method for passing on wealth.

There is that aspect, but there is also business relief which is less restrictive in some aspects. The recipient has to hang onto the land for 6 or 7 years afterwards as well. There is nothing guaranteed that that relief would continue in its current form as well. They could remove the proviso that it can be satisfied by leasing it to a "qualified" farmer for that length of time - i.e. leave it such that the recipient would themselves have to be qualified.

148multi

148multi wrote: »

Also I know of people buying land as a low tax method for passing on wealth.

Sure you need a green cert to receive the land then and farm it for 7 years or something?

What about automation in farming? Could be that you need a massive holding to be viable meaning pure farming land is worth less per acre.

20 years is some timeline.

Pawwed Rig

148multi wrote: »

Also I know of people buying land as a low tax method for passing on wealth.

I work in tax myself and recently enough we advised a client to buy a couple of million in agricultural assets so that they would pass a farmer test for estate planning reasons. She had no interest whatsoever in farming and ultimately did not go ahead with it but it is a good way of transferring funds between generations to avoid taxes.

Donald Trump

Deleted User wrote: »

Sure you need a green cert to receive the land then and farm it for 7 years or something?

What about automation in farming? Could be that you need a massive holding to be viable meaning pure farming land is worth less per acre.

20 years is some timeline.

You don't need the Green Cert. If you have it then you are sorted. But if you don't you can satisfy the requirements by leasing it to someone who is qualified.

Pawwed Rig

Pawwed Rig wrote: »

I work in tax myself and recently enough we advised a client to buy a couple of million in agricultural assets so that they would pass a farmer test for estate planning reasons. She had no interest whatsoever in farming and ultimately did not go ahead with it but it is a good way of transferring funds between generations to avoid taxes.

She sounds like one of those people in "A place in the sun" that are shown a load of houses but dont buy.

I hope ye got paid for yer time

Donald Trump

Pawwed Rig wrote: »

I work in tax myself and recently enough we advised a client to buy a couple of million in agricultural assets so that they would pass a farmer test for estate planning reasons. She had no interest whatsoever in farming and ultimately did not go ahead with it but it is a good way of transferring funds between generations to avoid taxes.

I think that the recipients own house is included in the 80:20 rule though is it not? If they have one that is.

Donald Trump

Donald Trump wrote: »

You don't need the Green Cert. If you have it then you are sorted. But if you don't you can satisfy the requirements by leasing it to someone who is qualified.

Fair enough, I suppose the 400 an acre rental prices are really dependent on the current dairy boom, entitlements and forestry.

Like the milk price is good at the minute, will that be the case in even 5 years not to mind 20?

Grueller

[Deleted User] wrote: »

Fair enough, I suppose the 400 an acre rental prices are really dependent on the current dairy boom, entitlements and forestry.

Like the milk price is good at the minute, will that be the case in even 5 years not to mind 20?

Milk price will probably be good once and bad 3 times in that time frame.

jaymla627

148multi wrote: »

My father bought 20 acers in the 50's for 500, he buried one of his parents that same year and the costs of the undertakers was 500.
You can't compare the price of land to anything else, with tighter rules the need for more acers or map acers will in the short term push the price up. Some people feel safer to invest in land than shares, but in reality there isn't much difference.
Changing trends in food consumption may have a big influence, but it may not.
Government decisions will probably have bigger influence on land prices but who knows what will happen, not many seen the price increase in sheep meat one year ago.
Have a friend who bought land in 1980 and got into bother with high interest rates, it was sold a few years later for 1/3 the price.
With the way countries are printing money inflation has to be around the corner, that will have the biggest effect with the debt load per cow, if the price of milk went below 20c combined a rate rise?
Hope you get a chance at your realising your dream.

In what world with record breaking grain prices does milk slip to below 20 cent, worldwide discounting Ireland/new Zealand that has a grass based system if processors don't deliver high 30's tipping 40 cent a litre their milk supply will simply dry up

Donald Trump

jaymla627 wrote: »

In what world with record breaking grain prices does milk slip to below 20 cent, worldwide discounting Ireland/new Zealand that has a grass based system if processors don't deliver high 30's tipping 40 cent a litre their milk supply will simply dry up

Not that many years have passed since it was nearer to 20c than 30c! It wouldn't be impossible to head back in that direction.

Aska

In reality how many times have you seen a field / farm land come back on to the market bar some lads bit off more than they could chew in the good times when the money was flowing out of the banks but here in Wexford and even around the Blackwater & Curracloe areas I cannot think of one piece of land that has been resold in the last 20 odd years. So I personally think that land is not going to get any cheaper in most areas going forward.