Hi,
Hope this is the appropriate forum for this question as it doesnt really sit under "property investment".
A substantial amount of Agricultural land has come up for sale very near where I live and I've been being trying to decide whether or not it would be a good investment. Im hoping to get some pointers around how I go about determing the true value of this land and what would make it a good investment. Consensus opinion is that land is over valued at the moment but it still seems to be selling so somebody see's value in it.
Im not a farmer myself so I wouldnt be farming it, I would either rent it out or have a relative farm it (the details of that agreement Id have to figure out). Im from a farming background so I wouldnt rule out the possibiity that I could farm it some day on a part time basis. WRT to the possibility using some of the land for house sites I wouldnt see it as an immediate possibility but I guess planning policy is fickle and may change at some point in the future. I dont know how much the land will be selling for or what rent you could get for it but I suspect the rent wont cover the repayments on the loan.
Also I have a broader query around what the future holds for land use in this country. Small to medium size farmers are completely dependent on EU payments (and has been for a long time), money made from actual farming activities would not cover the mimimum wage, and these EU payments may not go on forever. What happens then. Will we see a situation where only superfarms (for arguments sake the size of a smaller parishes) are sustainable and smaller farmers sell out. What does this future mean for current land values?
Anyway any pointers you could give me around this are would help. Ignore for now whether this is a
suitable investment for me personally, Im more interested in the criteria that would be used to make such a decision.
Cheers,
Warren
Hope this is the appropriate forum for this question as it doesnt really sit under "property investment".
A substantial amount of Agricultural land has come up for sale very near where I live and I've been being trying to decide whether or not it would be a good investment. Im hoping to get some pointers around how I go about determing the true value of this land and what would make it a good investment. Consensus opinion is that land is over valued at the moment but it still seems to be selling so somebody see's value in it.
Im not a farmer myself so I wouldnt be farming it, I would either rent it out or have a relative farm it (the details of that agreement Id have to figure out). Im from a farming background so I wouldnt rule out the possibiity that I could farm it some day on a part time basis. WRT to the possibility using some of the land for house sites I wouldnt see it as an immediate possibility but I guess planning policy is fickle and may change at some point in the future. I dont know how much the land will be selling for or what rent you could get for it but I suspect the rent wont cover the repayments on the loan.
Also I have a broader query around what the future holds for land use in this country. Small to medium size farmers are completely dependent on EU payments (and has been for a long time), money made from actual farming activities would not cover the mimimum wage, and these EU payments may not go on forever. What happens then. Will we see a situation where only superfarms (for arguments sake the size of a smaller parishes) are sustainable and smaller farmers sell out. What does this future mean for current land values?
Anyway any pointers you could give me around this are would help. Ignore for now whether this is a
suitable investment for me personally, Im more interested in the criteria that would be used to make such a decision.
Cheers,
Warren