Bord bia are getting acess to aim information now, if they decide not to certify anyone over a certain stocking rate them even if not drawing payments you will have to comply.
The war in russia probably knocked them about too. Empty cows with lots of milk are selling well at the moment.
Why sell at all. You'd have a fine income just renting the place. What could you reinvest in at the moment.
How far away is the land your looking at
6 winding hilly miles. Bit far for me maybe
I think theres a fair bit of ground rented on mp
spollens the concrete company own it, money isn’t an issue
Last farm I worked on in Oz had to sell up when the farm manager quit. Could not get a manager or workers to run it. Owner kept some land for beef cattle. Spends a lot of time fishing now! Even labouring in construction is easier and you make more money over less hours.
Also talking to a lad earlier this year who does water testing for the EPA on streams etc. back home in North Kildare - he says they are already working on a licence system for Dairy Farms over a certain stocking rate in "problematic" catchments like the IPC licence the intensive Pig sector needs to operate. Said the EU has basically run out of patience with Teagascs etc. failing efforts on the matter.
Was like a merry go round on any of the farms I was on out their re staff turnover, which came with it lots of “sick days” and missed morning milkings, had to run one 700 cows herd basically single handed for two weeks when what was meant to be a team of five people ended up been myself and a junkie bogan, that was as much use as a blind dog, it opened my eyes to how quickly the sh**t hits the fans in larger herds when staff levels are threadbare
Ireland isn’t as bad yet but the pool of young people looking towards dairying as a career as a employee is fairly small, and like you said theirs a lot easier and cleaner work out their at the minute
True, but who knows the circumstances behind these things.
OK I know nothing about the farm just saw the 600 cows in 265 acres. Sure who knows maybe they have other plans for the money.
They've heard of a rental property coming for sale...
Sign of the times I guess. Just not worth the hassle anymore. Owning a large farm and firing in staff is not as passive as it used to be. John A. Woods in cork had a fine farm for years and well bred cows and they sold out a few years ago.
But is the grass system that has done very well last few years coming under pressure.if nitrogen stays expensive or becomes unavailable for a period will we be able sustain stocking rates.if stocking rates fall it will squeeze tye margins on farms and also I would question will cows preform on lower nitrogen grass as protein is lower.the operation that is for sale there would really be operating at extreme s of the limits and maybe there was a thought that the future may be a little precarious and it is a good time to exit
The seasons seem to be messed up the last few years in our area at least where you used to get may to October where you'd always have good quality grass in front of the cows and a few kgs of nuts and a bit of buffer would see you flying it, the issue now is barely half the diet in june/july/August is grazed grass and at that the quality is crap....
Fertilizer at even a thousand a ton is a non-issue where your able to get the response from it and grass growth but mid summer here at least 20k was spent on 3 rounds of fertiliser on the grazing block and it was a waste of time given what grass was grown....
You take a herd size like above and if your having to buffer cows with 8 plus kgs of dm for most of the summer where you'd usually get away with 2-3kgs of meal, and are still going with normal rates of fertilizer at 1k a ton some savage bills start to get raked up, combined with sourcing enough forage to keep cows feed of the grazing block
EU proposed permit system for farms with 150 livestock units and over.
https://www.agriland.ie/farming-news/ireland-tells-eu-that-farm-permit-system-will-be-onerous/
They had 3 out farms for sale earlier in the year - 123acres, 60a and 29a.
https://www.independent.ie/business/farming/farm-property/leinster-farm-sales/a-trio-of-westmeath-outfarms-in-tip-top-condition-41655923.html
Obviously a story behind it so, I isn't it nice to have a 123 acre out farm I'd only love tho have that as my home block..
Haha very good, maybe straight has that house of his on Shrewsbury Road.
What is passive though, you are looking to sell a rental property to but land, and small landlords are leaving in droves apparently, yet I know a few people that seem to have done well out of rental property, have a brother who's ambition is to own a few rentals and live off those but I dunno.. interest rates rising maybe there will be a few bob on deposits soon
Ended up an accidental landlord for over 8 years ……zero regrets I’ve left ….house bough in 07 near heigh of boom ……lost over 70 k from price we paid but luckily sold it in last 2 years and ended up with a small bundle of cash with mortgage cleared
Yep, pain in the ass. And taxed through the hole too. Not allowed increase the rent then. You have to take all the pain with the negative equity and rental voids and when things turn you are not allowed increase the rent.
Bit like farming, too much interference and constant changing of the rules.
I'd love you and straight to have a word with my brother, he's likely to end up with a sizeable ball of cash in the next few years and he's set on the whole lot going into a property company. He's no ejit in fairness but I dunno. Apparently if you've a few properties rented you can set up a management company to get around the 25 percent surcharge on non earned income and just pay corporation tax on the rental income.
He's completely set on it anyway, I'd be trying to talk him into buying a nice 100 acres somewhere that I'd farm haha
In fairness I’d never an issue with tenants …2 different sets and second set eventually bought it ….just all the hassle beteeeen rtb…fixing niggly things etc ….have years in huge negative equity too when I thought I’d never be able to sell ….it was bought to live in short/medium term then sell to build on farm ….would never buy property again as investement ….land is better and safer
To be fair he's thinking it will be his full time gig and that would be a lot less hassle than his current job, bit sure it's all hypothetical at the moment and may never happen..
In a similar situation as yourself in that I bought house in a local town about 18 months ago, got it at a good price and remortgaged about a month ago at about 55 percent loan to value but sure who knows where things are going in the next 5 years..people didn't see it coming in 07 either
Meself and herself ended up as accidental landlords too. This is our tale of woe...
Bought a small family home for ourselves in 2007, then the family expanded a bit and we moved in 2013. Ended up in court thru the RTB with the first tenant who never paid a cent of rent for 4 months, then disappeared overnight with everything that wasn't nailed down in the house. She even managed to get a coal bunker from the back garden, thru the house, and out to whoever helped her load up all the stuff we left for her: towels, knives/forks, plates/cups/pans, all that kinda thing, she took the whole lot.
Anyway, we've had little trouble with tenants since then. It's Revenue that's the biggest issue now.
The rent covers the mortgage but not any repairs so we stump up for those. The biggest problem is paying tax on what Revenue call "income" but in reality is the mortgage payment. The rent comes in one day and out the next to the bank.
It's still about €20k in negative equity and we've sunk close to €10k into it in the form of income tax and repairs, never mind the hassle and stress.
But such is life. If we can stick it for another 10 years, we might break even. Assuming there's not another crash!
But repairs to a rented property are claimable off tax. At least we have been doing for years but are you saying that it's only claimable against the rental income and you can't set the loss against other income.
Something that some people are not aware of is that when calculating CGT on the sale of a property you can offset the capital loss acquired when milk quotas were abolished if you held quota at that time
We include repair costs in the tax return and a final figure for profit/loss is arrived at based on all income, so no distinction made between income sources.
Repairs reduce the tax liability which helps but it’s the cashflow again that makes the repairs hard at times.
I believe "real investors" use interest only finance to help with the cash flow. It wouldn't be my way personally. I don't know if it is even possible to get interest only finance in this country. That house will pay off for you eventually. I find the biggest problem is that you have nothing to do with repairs/maintenance for ages and then it all comes together when tenants move out or something. We have a council inspection coming up now. That's the latest thing. Will surely lead to more work/cost.
