How to secure loan for land - non farmer

They'll have no interest in house equity as they would find it difficult to get it if it went that way. As lads said above bigger deposit if you can swing it, and as much proof that your repayment capacity won't be under threat.

Have you not anything you can sell to raise 20k like a car ,buy a banger for a few months to keep you going ,Sell other stuff to raise cash phones ,tv ,laptop ,your wives jewellery 😀

would you be happy to have only a portion of the land (The one next to your house)?

The solution could be to offer the seller to buy only a portion at a higher price per acre or to agree the same with an adjacent farmer interested in the place as well.

The chances are low but at least you would have tried.

The minute it is planted, its value will drop to forestry value and it will stay at that permanently.

Going to the Bank with that plan would be like going to a finance company to buy a new car and telling them it'll be grand because that they'll have the car as collateral, but you're planning to race it in stock car races.

As Bass said above, OP they would have to question why you have relatively low savings relative to your repayment capacity. Unless you have just finished paying off something else.

You have 40k, but as J.O alluded to above, you really only have 20k because you'd need the other 20k for costs.

Yep...have to say I agree with this.

It is. But he might not have considered that he'd be buying anything up until the bit across the ditch came up unexpectedly.

With interest rates so low on savings it would have been silly to borrow money, even at a tracker rates if you can get them, while having money lose value in a bank account.

The OP wants to buy the land for possible houses for their children, which is highly unlikely to be allowed, or build something else. Once you put forestry on land that's all it can be for ever, they'll never be able to build anything on it. It depends on the quality of the land on it's value increasing or decreasing when planted, crap boggy land with loads of rushes will increase in value if planted vs well draining fields will loose value if planted.

That is agroforestry not planting.

You obviously never invested in your life. We are entering a downturn there is always investment opportunities in any recession no matter how benign.

OP as well disobeyed what most financial advisors will tell you to try to keep the equivalent of 6 months wages in cash. 60k kept in cash would cost him 1200-1500 per year at mortgage rate. Borrowing it at personal rate 40k would cost you 2800/year. If OP had 100k in savings the bank would look more favourable at the purchase.

OP is hardly going to tell the bank I want to buy it for to have sites for my children.

"Past performance is no guarantee of future returns".

The "problem" with planting trees is that you cannot just change your mind in a few years and legally cut them down. There is nothing wrong with planting trees - just be aware that if you put in rows of trees for your agroforestry, that if you later decide to sell that land, it's not going to be attractive to a fella who wants big fields for big machinery. That will make less difference if you are in an area which is not suitable for tillage.

Not really sure. Even if it will not at present you never know how long term rules will effect such development.

I bought land in 2003. It cost 320k. I have probably put another 50 k into it in real terms. Over the last ten years it would be generating an equivalent income of 30k+

The total property is now worth 700k plus. The first ten years were tricky with 3 of them hard going

The investmentment return is 15+% in my case

I think you are saying a 150% return over the 19 years?

That's 5% return per year, just to decompound it for comparision

I'm not commenting on the total as I don't know the figures.

I merely referenced the "15+%". I thought it could be a typo. If it's not a typo and he meant 15% return per year, that would means 1 Euro in 2003 growing to over 14 Euro today assuming he means annual return in the normally understood sense. If he is quoting it as a "simple" return (total return divided by number of years) then that is a bit misleading over that time frame.

My post was merely decompounding 150% over 19 years for comparison. It might not be what he meant.

For yours, 6.5% return would give a 230% overall increase

That's a decent return Bass.

My post was only a comment/clarification between using simple rates and annualised rates for comparison. They'll differ over that time period. The difference is bigger when then rates are bigger. That would correspond to about 4% compounded annually to get to 120% over 20 years. For the below, each line is 4% higher than the previous one. I've rounded for display purposes.

1.00 Start

1.04

1.08

1.12

1.17

1.22

1.27

1.32

1.37

1.42

1.48

1.54

1.60

1.67

1.73

1.80

1.87

1.95

2.03

2.11

2.19 End year 20.

You're also counting the rental income as a percentage of what you paid for the land. Which was 20 years ago. That isn't applicable to the other poster. He would need to look at your land as returning 30k on 700k, not returning 30k on 320k. Which is still very good. I was looking at a 50+ acre block near me a few years ago and figured that even if I got top prices for renting it out, it would be bringing in less than 2.2% (say 300 an acre for rent on land which was asking 14k an acre. I wouldn't have been buying it to rent it...)

You are talking through your proverbial. You have no understanding of investment and return. Farming is an active investment it's possible to avoid tax through spending. Rental income is away harder to shield. You can write down farming losses against PAYE income. You cannot write down pre investment costs against rental income. Repairs can be considered improvements and some may not be allowed against rental income

As well as farming is an active investment when you reach 60 years of age you can technically take 750k out as a pension without any tax.