Between 2% and 3% if you're very lucky.What's the rate of return?
Unless you've an interest in the land long-term, it's a crazy idea.Has anyone done similar? Any tips out there?
That’s food for thoughtBetween 2% and 3% if you're very lucky.
Unless you've an interest in the land long-term, it's a crazy idea.
Decent land will cost you 7k+ per acre. More like 9k in some areas. So your budget isn't going to buy a huge amount.
You'd be lucky to rent it for 200 a year. Farmers can be quiet principled, so if you buy it and there was someone local who really wanted it, you might end up not being able to rent it to anyone.
If you ever want to get out, land is very illiquid, depending on immediate local demand.
You'll pay higher stamp duty rates, so there's a lot of upfront costs.
If you invest, it's not really for income, but a high risk gamble on value increasing. Unless you've a way to apply for agricultural relief for inheritance tax planning, I'd stay well away.
Very diplomatically put. Principled ... mafia style.Farmers can be quiet principled, so if you buy it and there was someone local who really wanted it, you might end up not being able to rent it to anyone.
I originally had a different word choice!Very diplomatically put. Principled ... mafia style.
It’s (€120,000) too little an investment sum to buy residential property.
That’s food for thought
You're correct to say land is low maintenance, but it's like any rental property. People won't treat it as their own. If there's going to be livestock, boundary fences need to be maintainted. Unless land is very good, and naturally drained, again drainage can need attention every few years.
Not really. Although no harm if it happened to occur. If it were bought with that in mind it’d be a real gamble. No the idea is I have this sum of 120k. I’d like to buy an annuity with it. Agricultural land is a finite resource. The world population is growing and I come from a rural (but not farming) background. If I could buy low maintenance land in Kilkenny, say, rent it for tillage and hold it for 20 years or more would it be a good idea? It feels like it would be on basic principles but who knows.OP
Is the idea that the land would eventually, say 20 years, get zoned for residential development?
By comparison what is cost today of zoned land?
If buying agricultural land today on outskirts of large town what is the likelihood of it becoming zoned for development in 10/15/20 years time?
The other alternative is use the 120k. Buy a property in Dublin for 350 to 400k ish.
3% is still more than its earning in my bank account.
It feels like it would be on basic principles but who knows.
- Invest in an illiquid asset
.
The OP has €120k available and is talking about investing €120k. I do not see any reference to borrowing.- Borrow to invest
- Fail to diversify
I don't know what basic principles you are working from.
Agricultural land is a finite resource. The world population is growing .
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