Loan for land

Cavanjack

Anyone know are banks giving out loans for farm land? Couple of fields(22 acres) for sale running right at the back of our farm yard. Afraid a loan is my only option at the minute?

minktrapper

Not a bother.10 or 20 per cent up front though and expect them to factor in a drop in value.

bob charles

Most prepared to lend money on say 75% bases of what they value land at. nice interest rate aswell to go with it. Why bother buying and slaving for the rest of your days. Rent it, much better for your business unless you want to become a speculator

5live

Cavanjack wrote: »

Anyone know are banks giving out loans for farm land? Couple of fields(22 acres) for sale running right at the back of our farm yard. Afraid a loan is my only option at the minute?

I was at an AIB presentation earlier this year. As bob charles said, they will look for security and at least 20% of your own money up front or else your own farm as security. You will need detailed cash flows for your farm at present and show how the land will increase your profitability. A history of dealing with the bank would be helpful but not essential.

Yes they are giving out money but now they also will want to know when they are getting it back. Land bounding you rarely comes up so it is attractive (I think on average a farm in ireland is sold only once every 100 years).

I'd say talk to your manager and advisor and accountant if you dont feel you are able to do those figures and they will tell you if it is realistic to buy.

Best of luck if you decide to go ahead

sprouty

I've been An AIB customer since I started farming about 6 years ago. Never had much dealings with them-just the usual current A/Cfor the farm, small deposit A/C & mortgage elsewhere.
Farm beside me came up for sale this year & I found AIB very uninterested- they went through the motions but not really into doing the business. A friend recomended Ulster-Id never delt with them before- i couldnt believe the contrast ! The Ulster man was a sound down to earth guy who came up with a much better rate than AIB- he couldnt have been more helpfull.

Didnt buy the place though as teh price was beyond my reach....oh well-maybe Im better off !

minktrapper

Alot better off maybe, the price of land was way overvalued.

Muckit

I read there in the indo on Tues that some lad in Laois (I think) who retired and sold his farm in 2005, bought it back a few weeks ago for exactly half the price

whelan1

sprouty wrote: »

I've been An AIB customer since I started farming about 6 years ago. Never had much dealings with them-just the usual current A/Cfor the farm, small deposit A/C & mortgage elsewhere.
Farm beside me came up for sale this year & I found AIB very uninterested- they went through the motions but not really into doing the business. A friend recomended Ulster-Id never delt with them before- i couldnt believe the contrast ! The Ulster man was a sound down to earth guy who came up with a much better rate than AIB- he couldnt have been more helpfull.

Didnt buy the place though as teh price was beyond my reach....oh well-maybe Im better off !

think aib are crap tbh , i was thinking of moving to them last year , they came out went through the motions - just to say they had been out etc then said they had no interest in me:cool:

crackcrack30

u must have forgot to wine and dine them isnt that what used to go on...

whelan1

crackcrack30 wrote: »

u must have forgot to wine and dine them isnt that what used to go on...

well when they came out to me , i had been stood up by my own bank twice in the weeks leading up to the visit and the aib guy said at least we came out... but he was offereing nothing , now that i have made a big profit they will all be after me:rolleyes:

irishh_bob

i wonder will rabbobank enter the irish market in a proper fashion anytime soon , they only offer savings accounts at the moment and have no high street banks , anytime you hear a report from the dairy industry in new zealand , rabbobank are mentioned so they must lend money to farmers over there , they aint broke like all our banks and are cash rich , you would think thier is a market for a proper functioning bank right now more than ever

dar31

irishh_bob wrote: »

i wonder will rabbobank enter the irish market in a proper fashion anytime soon , they only offer savings accounts at the moment and have no high street banks , anytime you hear a report from the dairy industry in new zealand , rabbobank are mentioned so they must lend money to farmers over there , they aint broke like all our banks and are cash rich , you would think thier is a market for a proper functioning bank right now more than ever

ACC, no high street branches though.

what happen

Muckit wrote: »

I read there in the indo on Tues that some lad in Laois (I think) who retired and sold his farm in 2005, bought it back a few weeks ago for exactly half the price

my local vet sold 7 acres for building houses 2007 for eight hundred thousand and now he wants trying to buy it back for one hundred thousand.

sh1tstirrer

what happen wrote: »

my local vet sold 7 acres for building houses 2007 for eight hundred thousand and now he wants trying to buy it back for one hundred thousand.

He must one of the very few that didn't take the banks advice and invest his money

milkprofit

Banksa will lend at 5.5%
Farm land is the new --- RENTAL PROPERTY
Dont forget to budget making capital re payments after tax -bumer