Made an investment in land, way forward?

Glitterhaus

Hello all,

I recently acquired 3 acres of farming land adjacent to my family home for 30,000 euro from a family member. Originally, I had considered building a small home on it, but given the current high building prices and my low annual income of 30,000 euro, I'm trying to figure out a more sustainable long term plan that works financially.

To finance the purchase, I opted for a personal loan and it is a big chunk coming out of my paycheck every month. Potential rental income from agricultural use is limited so I'm seeking insight on the best financial way forward. Are there alternative income streams I should explore? Any governmental assistance programs or subsidies I might qualify for? Or would it be wise to hold onto the land and wait for a more favourable market? I know some people use the value of the land to get a mortgage to build, but I don't see how that would be financially smart.

I appreciate any advice or personal experiences, thank you!

cnocbui

I would view that as a burden, not an ivestment. Your best option would appear to be to try and get planning permission on part of it for the construction of a house and then sell it for that purpose, but given the hesitancy by councils to grant such applications, I wouldn't fancy your chances.

StormForce13

Did you buy land that had obtained planning permission (sensible) or land that you hoped would get it (rather rash)?

What is its present zoning?

Glitterhaus

Yeah, it has planning permission for a bungalow - and it would be easy to divide the land up. Is there a market for people buying sites with planning permission at the moment? Are plots selling?

Glitterhaus

Yeah, i think I was fairly optimistic when I bought it, thinking I would build soon enough. But the reality of building costs at the moment was a shocker, I knew it had gone up, but not to the point that its currently at. Maybe selling a portion off is my best bet.

cnocbui

https://www.boards.ie/discussion/comment/121915554#Comment_121915554

I would say there would be a market, but that would depend a lot on location and the amenity values of the locale and site. If it's in the sticks in Roscommon with the nearest Tesco 40km away, not so much, if it's 5min from a school, 10km to the nearest Tesco with nice views of mountains, water, it's going to attract some interest.

Padre_Pio

https://www.boards.ie/discussion/comment/121915554#Comment_121915554

Huge market, depending on location. Personally I'd split it into 6 half acre sites and piece it out that way, but it would depend on the shape of the plot.

Glitterhaus

Ok, that's interesting. It's not the best location in terms of amenities, but it is beautiful and peaceful. Supermarkets etc. are about 15k away and it has a nice view.

Glitterhaus

Is that realistic to divide and sell as six plots? How would work in terms of planning permission? Would I be dividing in land registry first and applying for planning permission for each of the plots?

wench

Check your county council's rules on ribbon development. They usually discourage clusters of 5 or more houses in close proximity.

StormForce13

https://www.boards.ie/discussion/comment/121915554#Comment_121915554

You described the site as 3 acres of farming land and you have added that it's "beautiful and peaceful" which leads me to suspect that it's in a rural area and is probably zoned as agricultural. Do you know whether your PP is open or restricted (e.g. for local housing need only). If it's restricted then it's unlikely that you can sell the site with pp to an outsider and even more unlikely that you could get more planning permissions for smaller plots.

You definitely need to discuss this with your local council's planning office before doing anything else.

Glitterhaus

https://www.boards.ie/discussion/comment/121921401#Comment_121921401

Yeah, I haven't seen many developments like this pop up in the area. I checked and there are some conditions on ribbon development under my local county council. From what I can make out, the land adjacent to my family home would allow for one, maybe two homes max, considering the ribbon development conditions.

Glitterhaus

https://www.boards.ie/discussion/comment/121922623#Comment_121922623

Interesting. Yeah, it is rural area. The planning is restricted to local needs. Meeting the local planning office sounds like a good plan.

jt69er

Employ an engineer who is familiar with the local planning situation. Have them approach the council on your behalf as they will likely have a good working relationship with the council officials. A pre planning meeting can then be arranged.

Glitterhaus

https://www.boards.ie/discussion/comment/121923326#Comment_121923326

Ah, so I should look for an architectural engineer?

StormForce13

https://www.boards.ie/discussion/comment/121923420#Comment_121923420

Who drew up the plans for the bungalow? Start with him/her if they're local.

Donald Trump

https://www.boards.ie/discussion/comment/121915554#Comment_121915554

"It" has planning, or you have non-transferable permission to build there?

You are entitled to do what you want with it, but it appears someone sold it to you at a very reasonable price. They may or may not be pis$ed off if you just sell it

Water John

If you need a house, then that is what you should seriously look at. There are schemes, shared ownership etc to help for lower income people.

mickdw

It is dreamland stuff to suggest 6 half acre sites for sale. Not going to happen on rural farmland.

You bought the 3 acres. You have planning for a house.

It is important that this is built as planning may not.be possible again the way things are moving.

So my primary action would be to try to fund the build if you.need a house. If you don't need a house, the purchase didn't make much sense.

Is there any other family member that could buy a section back from you for a site. That might be possible and would be useful funds for you.

AnF Chuckie egg

Biggest issue I see is the possibility of planning permission lapsing. Choices are

Sell with planning in place

Beg borrow or steal the money to get the house built to wallplate level and thus hold the planning

Try and find a builder/buisness partner to build the house for you to sell

Do nothing pay off the loan and maybe in the future on of your own family might avail of the site

In the meantime, 3 acres on its own, the rent off it is probalby in the region of 400 euros per year

roosterman71

https://www.boards.ie/discussion/comment/121915557#Comment_121915557

Cost of building isn't going to come down anytime soon either I reckon. The days of trouble importing materials and the like are over, yet the prices haven't dropped back. The cheapest time to build is now