Buying vs building a slatted house.

Waternotsoda · 16-10-2019 8:03pm #1

Are there any advantages in buying v building a slatted house?

Muckit · 16-10-2019 10:31pm

Tis only yourself knows that!

Gods Gift · 16-10-2019 10:47pm

You can’t bate your own shed in your own yard.

_Brian · 16-10-2019 10:51pm

Do you mean buying a kit versus building a shed?

Of buying a shed already built somewhere other than on your own farm?

Albert Johnson · 16-10-2019 11:47pm

There's going to be a lot of variables and without knowing the entire story it's impossible to say. I would think that building the shed you want where you want it would be the major advantage of building your own. It won't always be possible to buy an existing shed that suits your needs and is close proximity to where you want it although if it's available then I don't see why not. It depends on what's available at the time I suppose. You rarely see sheds offered without some amount of land so this could mean spending more although you'd be obviously buying more than just a shed in this case.

Our vet bought a slatted shed and another dry bedded shed away from his own yard in recent years. The previous owner planted the farm before selling so there's only the site of the sheds and no other land attached. This means that stock and fodder have to all drawn in and manure and slurry hauled away. The distance between his sheds and land is now about 3 miles which includes going through a good sized town. I wouldn't have even considered it and think it's madness but it works for him.

TPF2012 · 16-10-2019 11:56pm

Any differences in capital expenses when buying or building?

Waternotsoda · 17-10-2019 12:43am

I mean buying a shed already built away from my farm. I was considering renting for the winter but then it struck me that buying a shed might be more savy than handing over rent-dead money.

There seems to be quite a few sheds in roscommon up for rent. Lots were built in recent years. I was thinking about this in terms of depreciation write downs etc. I know I can reclain vat on a new build. But what about simply buying an existing shed. Would I buy one cheaper than I would build it. I know it would be really handy to have one outside my back door but cost is deffinetly a factor. Plenty of people around here travel a few miles to their sheds so it would not be unusual.

So it's a question mainly about money?

_Brian · 17-10-2019 8:04am

Waternotsoda wrote: »

I mean buying a shed already built away from my farm. I was considering renting for the winter but then it struck me that buying a shed might be more savy than handing over rent-dead money.

There seems to be quite a few sheds in roscommon up for rent. Lots were built in recent years. I was thinking about this in terms of depreciation write downs etc. I know I can reclain vat on a new build. But what about simply buying an existing shed. Would I buy one cheaper than I would build it. I know it would be really handy to have one outside my back door but cost is deffinetly a factor. Plenty of people around here travel a few miles to their sheds so it would not be unusual.

So it's a question mainly about money?

Make sure and factor in the cost and inconvenience of having to draw everything from your place to the new place.
How far are you willing to go??

I’d think a shed in your own yard would be a no brainier, you’ll have expenses and inconvenience every day going forward.

Then theres security issues both for stock and equipment.

Bass Reeves · 17-10-2019 10:38am

Waternotsoda wrote: »

I mean buying a shed already built away from my farm. I was considering renting for the winter but then it struck me that buying a shed might be more savy than handing over rent-dead money.

There seems to be quite a few sheds in roscommon up for rent. Lots were built in recent years. I was thinking about this in terms of depreciation write downs etc. I know I can reclain vat on a new build. But what about simply buying an existing shed. Would I buy one cheaper than I would build it. I know it would be really handy to have one outside my back door but cost is deffinetly a factor. Plenty of people around here travel a few miles to their sheds so it would not be unusual.

So it's a question mainly about money?

On a shed build on your own farm say costing 60K. You draw back the vat about 7200 euro. After that you write down the total cost over 8 years. If you off set it against the higher rate it will cost you about 30K at the lower rate its cost you about 42K. However if all the write off are against farm incme the write off's will be higher inc PRSI whatever about VAT.

If you bought the same shed in a yard its hard to imagine it only costing 60K. However none of it can be depreciated against tax. As well you will have legal and transfer cost, stamp duty is now 7.5%. If it cost exactly the same stamp duty would be 4.5K and another 1.5-2K in legal and other transfer costs.

If in both senario's you had 20K of saving to go into the scheme and had to borrow the remainder in the case of the build you borrow about 32K over 5 years at 7% interest will be 5.2K

In the case of purchasse you will need 46K we will assume over 7 years you have to go unsecured as banking costs make it uneconomical to secure. You might shave a percent off the borrowing costs but I would imagine not so 46K over 7 years @7% is 11500 euro.

Interest can be written down for tax purposes in both cases so 3.1K and 6.9K respectively. Legal fees as well can be written off so 1200 net stamp duty cannot be.

After tax and depreciation at the high rate in both cases
shed build on own land costs a tad over 33K
shed purchassed costs about 73.5K

Lime Tree Farm · 17-10-2019 10:56am

I took an interest in this thread.

You give a great answer, with a clear explanation, exactly what I needed to know also.

Thank you Bass

hopeso · 17-10-2019 1:39pm

Waternotsoda wrote: »

I mean buying a shed already built away from my farm. I was considering renting for the winter but then it struck me that buying a shed might be more savy than handing over rent-dead money.

There seems to be quite a few sheds in roscommon up for rent. Lots were built in recent years. I was thinking about this in terms of depreciation write downs etc. I know I can reclain vat on a new build. But what about simply buying an existing shed. Would I buy one cheaper than I would build it. I know it would be really handy to have one outside my back door but cost is deffinetly a factor. Plenty of people around here travel a few miles to their sheds so it would not be unusual.

So it's a question mainly about money?

If there are plenty to rent locally, you should be able to get one at a decent enough rate... This option will give you experience of what having a shed away from home is like, regarding feeding and emptying the slurry. If it works out for you, you can buy later knowing full well what you're getting into. It will also give you time to think, and indeed see what the state of cattle farming is like in a couple of years time. The way it's looking at the moment, I'd question if building anything is worthwhile......

maidhc · 17-10-2019 2:05pm

Waternotsoda wrote: »

So it's a question mainly about money?

Do you not value your time? The only way having stock makes sense if you aim to spend as little time as possible messing with them and as much time as possible doing productive work.

It would be plain madness to buy a shed on its own in my mind.

Waternotsoda · 19-10-2019 12:53pm

Thanks Bass,

Financially building seems a no brainer. Location wise, yes having it in my own yard would save time. If it was located on my way to and from work this might help. But like I said money is the main consideration. So I'll wait for the current crisis to pass.

Bass Reeves · 19-10-2019 1:52pm

If time is on your side start to get planning and go the Tams route it will take another 8-10K off cost

Buying vs building a slatted house.

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