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Loan To Buy agricultural Land

  • 24-08-2011 12:54pm
    #1
    HillFarmer
    Registered Users, Registered Users 2 Posts: 580 ✭✭✭


    Hi All,

    Does anyone know the average rate banks charge for a loan to buy land?

    Also what is the typical payback period.? do they allow the loan to be repaid over 20 years or is it more short term.?

    Cant find any info online

    Any help much appreciated


Comments

  • #2
    Grecco
    Closed Accounts Posts: 1,007 ✭✭✭Grecco


    I bought land on mortgage. I couldn't get a straight loan for the land they wanted additional collateral. As I had a house mortgage that was nearly cleared they just bumped that up and took the deeds of the land as well :(.
    I`m currently paying 4.25% but thats OK I can easily manage it.
    I also had a good job and was already farming so that helped.
    I`d say its even harder now and doubt they would lend out money unless you can demonstrate that you can easily pay it back. IE they are looking for AAA class customers only. Solid job, good salary, big deposit, proven record.........etc etc
    not easy


  • #3
    locky76
    Registered Users, Registered Users 2 Posts: 867 ✭✭✭locky76


    6.5% over 20 years, you have to put up 25% of the cost yourself.
    HillFarmer wrote: »
    Hi All,

    Does anyone know the average rate banks charge for a loan to buy land?

    Also what is the typical payback period.? do they allow the loan to be repaid over 20 years or is it more short term.?

    Cant find any info online

    Any help much appreciated


  • #4
    milkprofit
    Registered Users, Registered Users 2 Posts: 1,168 ✭✭✭milkprofit


    4.3 % --5 % 20 years
    80% funding
    @7,000 per acre plus stamp duty plus tax on capital repayments is it worth it


  • #5
    HillFarmer
    Registered Users, Registered Users 2 Posts: 580 ✭✭✭HillFarmer


    No not worth it, land is probably the worst performing asset for the amount of money that is tied up in it.

    Thanks for all the replies, think I'll head in to AIB this week and see how I get on.


  • #6
    Grecco
    Closed Accounts Posts: 1,007 ✭✭✭Grecco


    oh yeah as for stamp duty they wont lend for that either way


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  • #7
    F.D
    Registered Users Posts: 718 ✭✭✭F.D


    Grecco wrote: »
    oh yeah as for stamp duty they wont lend for that either way
    thats like getting finance for a car but they wont give it for the steering wheel, sure stamp duty is part and parcel of it isnt it? anyway you would just ask for more to cover it


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