Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Buying land

  • 22-02-2023 5:29pm
    #1
    Registered Users Posts: 73 ✭✭


    Hi all

    20 acres up for sale near me anyone the interest rate for borrowing money to buy land



«134

Comments

  • Registered Users Posts: 1,433 ✭✭✭cjpm


    6% plus



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    My farm loan secured on land are just under 8% with AIB. 15 year loan max length farm loan I could get. Also it keeps going up looks like will be 10% by year end.



  • Registered Users Posts: 1,126 ✭✭✭Tileman


    That’s a shocking rate. That’s nearly a personal loan rate. Did you have farm accounts in your own name befor or have previous record of paying off a loan or credit?



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Perfect accounts. Perfect credit history. Mortgage etc. Never missed a direct debit or any payment. Think when I took it out it was 5% variable been going up since,

    Loans are higher than lads think. Remember they are commercial loans at commercial rates only 2 lenders really BOI or AIB. Land security is 3 times loan value



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Example *A typical land loan of €60,000 over a term of 10 years with a variable interest rate of 5.50% (APR 5.65%), would mean that you would make 120 monthly repayments of €651.24. The cost of credit is €18,148.40 and the total amount repayable of €78,148.40.

    [Warning – the above is provided for illustrative purposes only. This is a variable rate product and the interest rate can rise, which could increase the cost of your monthly repayments.]

    Just googled and the above came up. I wonder is that webpage out of date?? As when I took out my loan it was about 5.5 but last 18 months flew up in interest.



  • Advertisement
  • Registered Users Posts: 1,126 ✭✭✭Tileman


    Yea I have land loan with bank of Ireland .it’s still 5% though. Thankfully nearly there now so even if it did go up it wouldn’t be as big an impact.


    probably does need to go up though to try dampen prices for land. They are gone crazy.



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump


    Those rates will have to cool the market off. Unless there are enough bigger lads with company structure to keep pumping profits into land. Smaller blocks might come down a bit at least. From prices in the paper and advertised online it still seems to be soaring though!



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Not being smart but you sure still 5%? I know with my mortgage as nearly done there is essentially no interest being paid just the capital. The interest is like 200 a year so if your land loan nearly over is is just capital now?



  • Registered Users Posts: 1,126 ✭✭✭Tileman


    Yep still 5%.

    no obviously amount of interest is substantial lower now than the early years. Interetst is added on a quarterly basis.



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Thanks. Well to OP head to BOI.



  • Advertisement
  • Registered Users Posts: 73 ✭✭QA1


    Fook money is dear lad I will have to break the piggy bank



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Just checking been 7 interest rates rises this year alone!! 03/01, 09/01, 16/01, 23/01, 30/01, 7/02 and 13/02. Yeap or marry for money wish I had done the later.



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump



    You need to marry for love. Like Melania did.

    But back on topic, what will happen if the arse falls out of milk price for a period? Global markets slump and then there are loads of lads with big loans with increasing interest rates betting ahead of them and then more being locked into expensive long-term leases at big prices.

    I looked at a few places near me that went up for sale in the last 4-5 years. One I nearly bought (around 40 acres) but the owner decided to keep it in the end, and another place that was about 60 acres but the auctioneer was looking for about 20% more than I'd have been willing to pay (even considering it overpriced at that). It did sell. Land has been only on the up since.



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    Land was same price 20 years ago or more.

    Remember that place being sold would it make more than 25k an acre today??

    Sold for 10k an acre few months ago



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    And more on topic I agree alot lads including myself feeling the pain. Will be a tough year in farming as interest rates on the up and cost of stuff alot of lads will do zero investment for next few years.



  • Registered Users Posts: 695 ✭✭✭3 the square


    Never hear of the land that there is little or no interest in no mention of it in the comic ever



  • Registered Users Posts: 73 ✭✭QA1


    The job will have to pay for it the few cattle won’t pay it

    borrow 110 k at 7.1% for 12 years

    13644 per year

    total 163728

    is that right

    fook mad ted fook mad

    thank god it’s not public auction



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump


    Don't forget your 7.5% stamp duty and then other associated fees.



  • Registered Users Posts: 301 ✭✭Rusheseverywhere


    That is why you were a one term President always with the negativity!



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump




  • Advertisement
  • Registered Users Posts: 1,050 ✭✭✭morphy87


    Bank of Ireland 6.07% secured, the latest I saw a few weeks ago, someone made the point here about the price of land in the media, there was two pieces not far from me late last year, within 1k of each other, one piece made €7000 an acre and the other €11000, both similar quality, the second lot made the paper but not a mention of the first, you never the lower prices



  • Moderators, Society & Culture Moderators Posts: 3,624 Mod ✭✭✭✭Siamsa Sessions


    I agree 100%.

    As a rule of thumb you could take 20% off the price of anything you see in the media, be it cattle, machinery, or land, etc.

    WEANLINGS SURGE €100/HEAD = the odd weanling is making €80 more than last year

    Trading as Sullivan’s Farm on YouTube



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump



    I started a thread on a similar topic a while back. I saw a story in the paper where a farm was hyped up in advance as expected to make 30k an acre. When the auction came and it made 23.5k an acre, it was then hyped up as a great price for the seller.

    If I achieve a price that is only about three-quarters of what I said I was expecting to get, I wouldn't be hyping it up as a great sale price for me.


    https://www.boards.ie/discussion/2058274802/why-do-journalists-all-hype-up-prices-for-things



  • Registered Users Posts: 2,848 ✭✭✭cute geoge


    There was a flaking liestone farm sold in local village for 60 acres @ 20k ,It put prices into perpective for me.

    Its only the top 1% thats worth this money really 10k for good /average land down a lane is probably what its worth as well



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump


    The last few years you had non-farmers with a lot of money sitting in cash who thought "I'm getting 0% interest, and threatened with negative interest whereas if I buy farmland I can rent it out for a tax free income".

    The current environment won't be seeing those people coming into it any more.


    Places set up with a company structure which have a high level of income flowing in due to high prices will still be looking for somewhere to put that money. Thar income stream is far from guaranteed though.



  • Registered Users Posts: 1,050 ✭✭✭morphy87


    The same with grazing, I know of one place that made €580 an acre, it was land adjoining two dairy farmers grazing platform, again this made the paper, 2 miles up the road a similar holding made €350, if your going to report sales you should report the high as well as the low



  • Registered Users Posts: 18,140 ✭✭✭✭Bass Reeves


    Land price also depends on infrastructure. A decent road into and through the farm is worth 1-1.5k/ acre. At present fertility of land could be worth the same. Fencing and water 1k/ acre. A decent shed 1-2k/ acre

    Last year a farm made 20k/ acre the other side of Limerick. However it was a working farm with a residence. All you had to do was pull up the truck and unload the cows and start milking.

    Slava Ukrainii



  • Registered Users Posts: 19,022 ✭✭✭✭Donald Trump



    One thing that annoys me in articles is a big headline of X per acre for 50 acres, and then when you read it you see that there is also a big house on it for that price.......


    Roadways are under TAMS 3 btw.



  • Registered Users Posts: 18,140 ✭✭✭✭Bass Reeves


    Roadways and fencing are. But the overall limit is 90k this limits you if you have other investments. This is an issue with dairy farmers who hit that limit very fast.

    Slava Ukrainii



  • Advertisement
  • Registered Users Posts: 2,542 ✭✭✭Cavanjack


    Any good size slatted shed wouldn’t be long hitting 90k these days

    I wonder what the spec will be on electric fence jobs. It’ll probably be complete over kill.



Advertisement