quickinvestor
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Does anyone see the price of land rising in Ireland over the next 20 years?
Top Quality Agricultural Land that comes with Road Frontage in Laois
The land is divided into 5 plots making a total of 50 acres. All 5 plots have road frontage and are in in fields beside one another.
The land is between two towns. Lots of farmers are around.
I Would hope to rent the rent the land for 15-20 years and then sell.
6300 per acre to buy, can rent for 180 per acre
No hassle as I would have no maintains to do
I won't need the money for the next 20 years
Does anyone see the price of land rising in Ireland over the next 20 years?
The price of land is increasing, it just depends on where the land is...
Everything goes in circles ,who would have thought that houses would once again be up in price dramatically following the property crashno its not , its falling
Everything goes in circles ,who would have thought that houses would once again be up in price dramatically following the property crash
All European countries farmers get the same subsidies that Irish farmers get so don't think that influences the price difference but if you had top quality land available for sale or rent in areas of high dairy output or horticulture then your land will command top price paid so as above it location,location.....apples and oranges
1. housing has recovered in economically vibrant urban locations ( not in economically depressed locations )
2 . demand exceeds supply when it comes to housing in these areas
there is tonnes of farm land out there and the majority of farmers rely on subsidies for their income which effectively means the price of farm land is largely determined by handouts from europe
despite the fact that land is down about 60% from the peak in price , it is still more expensive in this country than in the majority of european countries
All European countries farmers get the same subsidies that Irish farmers get so don't think that influences the price difference but if you had top quality land available for sale or rent in areas of high dairy output or horticulture then your land will command top price paid so as above it location,location.....
In areas of top quality land in all parts of Ireland ,the farmers are usually well established anyway even before the subsidies so that situation wont change with subsidies dwindling,its the poorer type land/holding that land needs more maintenance which costs money that will lose land value going forward no doubt but should still have a floor price of around 5000 euro /acre,also most of the farmland is passed on this next generation as gifts so usually no debt following this land so land tends to stay within the same familywould you accept that a reduction in subsidies would effect the price of land ?
at least in areas where dairying is not particularly intensive or widespread
btw , farmers in poland and hungary etc receive less subsidies than irish farmers , their is likely to be a rebalancing going forward , more recent EU members will want what they see as their fair share
cake will obviously shrink with regard brexit too so its not looking like irish farmers will receive the same in the future as they do now
i just want to be clear , im not saying farming is facing a bleak future , im saying farm land will go down in price , high land prices are an obstacle to an expanding ( efficient ) agri sector
In areas of top quality land in all parts of Ireland ,the farmers are usually well established anyway even before the subsidies so that situation wont change with subsidies dwindling,its the poorer type land/holding that land needs more maintenance which costs money that will lose land value going forward no doubt but should still have a floor price of around 5000 euro /acre,also most of the farmland is passed on this next generation as gifts so usually no debt following this land so land tends to stay within the same family
Some great replies here. Yes, the land is a good price, but I always wonder why local farmers don't buy, perhaps they can rent cheaper and claim?
Some of you have noticed I am a long term investor, I am in no rush to make bad illiquid investment.
Jim Stafford, I think I will wait for another 3/4 years until the next recession?
its important to realise that agriculture often operates in its own economy , from around 2003 to 2009 , agriculture was doing quite poorly , farm land was a crazy price but this was due to people who sold land for development beside towns reinvesting the money in farm land out in the country , from 2010 to around 2014 , dairy farming had a boom , from early 2015 to the end of 2016 , it was in a recession with prices down 50% from the middle of 2014 , the price of an acre halved in value from the peak bubble of early 2007 to early 2010 , land actually then went back up about 25% but since 2014 has gone down about 25% again
in effect , this sector of the property market has completely decoupled from the broader property market so a recession in the broader economy need not coincide with one in agriculture
why are you so wed to buying farm land can i ask ?
you say your a long term investor , 3% isnt much to ask for and over the long term , an equity portfolio will outperform land by a distance
I would be buying it as a safe investment to protect against inflation. However; I already own land C.10 divided into 3 fields beside each other in another county. They currently provide ROI of 1800 per year inflation tracking linked contracts. No debt on land. Owned for last 80 years.
Perhaps, I have enough of land in my Portfolio ?
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