Hi,
Just asking - im thinking of buying maybe 15 acres as hobby farm. iv no other land.
What hidden costs would I be facing?
Say I bid on the land at auction , and win it for €100k on the day - do I need to pay VAT on that? Or solicitors fees?
Stamp duty and solicitors are the ones I can think of
Stamp duty is the big one @ 7.5%
so stamp duty alone in your 100k farm is €7,500
Life insurance if long term
Stamp duty- 7.5%
solicitors fees- whatever you’ve agreed. And May include some of the below.
land registry deed of transfer- €130
land registry new folio (if required) €75
maybe right of way registry- €40
maybe folio maps- €40
Yeah stamp duty and solicitors fees-which are usually around 2k around here even if a 1/2 acre site or 200 acre farm,and that could be 2k for both parties as different solicitor’s have to represent buyers and seller
As far as I know if you are getting a commercial loan to buy the land you will end up paying for the banks solicitor also.
1% to me for giving you this advice 😉
Public liability insurance thereafter too.
As far as I know, If it is just land on its own without any buildings on it, you won't get public liability.
If you are under 35 and completed the green cert you are excempt from paying stamp duty. Unless this changed in recent years.
You don't have to have completed it at the time either. I think you get 4 years to do so before it is clawed back
Heres a hidden cost i had... a new gate because the old one was taken by the man who had the place leased...
😁 electric fencer and over two months of free grazing for the man's cattle in a recent transaction with me
Neck like a jockeys ballsack
We have placed gates, water troughs and a round feeder on rented land.. They are not part of the land owners fixtures and fittings.
The gate was there before him...
Different in our case, broken rusty gates and strands of barbed wire.
Well if you can afford to buy land ,you surely should be complaining about buying a gate and to say the gate was there before him ,how can you say it belonged to the land .
Out of interest what sort of interest rates are ye being charged on land loans? Looking at a potential purchase currently, have just approached one lender at the moment and they are looking for base plus 3.75%. Haven't approached any other lender currently but thought their should be better value available than that? €425k loan on a €625k purchase. Is their any other lender apart from BOI and AIB that do land loans?
What sort of a statement is that?. I can say it belonged to the Land because it did... Thats just a fact
Variable? Given what they are lending out on houses below 3 % you'd think they'd be able to do better. Their margins are saucy here to say the least, esp when you are below 70% ltv
Variable I guess, its quoted as a fixed rate of 3.75% over base over 20 years. Base borrowing rates for the bank is currently 0% but if that moved to like 2% they your 3.75% rate would increase by 2%. I agree it looks expensive to me so I'm interested to hear what others are being quoted or have agreed in recent years.
Their margin is 3.75. Was 3.5 here with boi taken out 6 years ago. Could have gotten slightly better had I switched but the other bank wouldn't taken on the existing debt which I was refinancing so stuck with BOI then.
Over 20+ years at that margin I was told to budget for it averaging near 7% for the duration but have fortunate with low interest in the last number of years. Price em both and see what you can do. Interest rates rising also means it doesn't cost them to hold money so perhaps they might move on their margin with loans then
I was looking at purchasing a parcel of land, just wondering what way is the interest calculated on these loans? I was trying to purchase some a few years ago but I was only borrowing some of the money over 12 years and my interest rate 6.5 percent unsecured, just reading here some posters were getting a rate of 3.5 to 3.7 percent, , how are you been offered these rates? Is this rate an option when going 20 years?
This is great. I'm looking at some land now and am thinking of buying it. I heard something about young farmers being classed as under 40s now. Is this true?
And does green cert mean no stamp duty at all for young farmers? I thought it was 1% but maybe that's for older farmers with green cert too.
I don't think so on the 40. There is an age limit of 40 for some schemes (Organic I think) but I don't think that's applicable for stamp duty. 35 and under for Stamp duty and be classed as "trained" (or attain that within X years) and you get 0%. If you go Green Cert route it isn't free either to do it and it will take a bit of time/effort. I think it's abotu 3k through Teagasc and maybe 2k for the private colleges.
1% is for consanguinity relief. That is being for transferred land from a close relative. Age irrelevant for that.
Where are you buying and why are you buying?
To claim this relief, you must:
You must also intend to:
for a period of at least five years from the date of transfer.
Perhaps I was mixing up the being able to finish the qualification after 35 with inheritance reliefs. I'm nearly sure though that you can claim 0% under 35 and finish your qualification later.
My own opinion on this young farmer scheme malarkey is it is ageism and discrimination. Theirs an awful lot of lads who are not in a financial position to buy land until well into their 40s or build new sheds etc I wonder has anyone challenged these schemes on a legal basis.
The same argument could be made as regards farmer v non-farmer.
Young farmer schemes are there to encourage farmers to transfer their farms early. If the age limit wasn't there the reliefs wouldn't be any advantage as the owners would be transfering their farms to 40 - 60 year old heirs any way.
Challenge it and the reliefs could be scrapped because there'd be no benefit
