Buying land

6% plus

That’s a shocking rate. That’s nearly a personal loan rate. Did you have farm accounts in your own name befor or have previous record of paying off a loan or credit?

Example *A typical land loan of €60,000 over a term of 10 years with a variable interest rate of 5.50% (APR 5.65%), would mean that you would make 120 monthly repayments of €651.24. The cost of credit is €18,148.40 and the total amount repayable of €78,148.40.

[Warning – the above is provided for illustrative purposes only. This is a variable rate product and the interest rate can rise, which could increase the cost of your monthly repayments.]

Just googled and the above came up. I wonder is that webpage out of date?? As when I took out my loan it was about 5.5 but last 18 months flew up in interest.

Those rates will have to cool the market off. Unless there are enough bigger lads with company structure to keep pumping profits into land. Smaller blocks might come down a bit at least. From prices in the paper and advertised online it still seems to be soaring though!

Yep still 5%.

no obviously amount of interest is substantial lower now than the early years. Interetst is added on a quarterly basis.

You need to marry for love. Like Melania did.

But back on topic, what will happen if the arse falls out of milk price for a period? Global markets slump and then there are loads of lads with big loans with increasing interest rates betting ahead of them and then more being locked into expensive long-term leases at big prices.

I looked at a few places near me that went up for sale in the last 4-5 years. One I nearly bought (around 40 acres) but the owner decided to keep it in the end, and another place that was about 60 acres but the auctioneer was looking for about 20% more than I'd have been willing to pay (even considering it overpriced at that). It did sell. Land has been only on the up since.

And more on topic I agree alot lads including myself feeling the pain. Will be a tough year in farming as interest rates on the up and cost of stuff alot of lads will do zero investment for next few years.

That is why you were a one term President always with the negativity!

Bank of Ireland 6.07% secured, the latest I saw a few weeks ago, someone made the point here about the price of land in the media, there was two pieces not far from me late last year, within 1k of each other, one piece made €7000 an acre and the other €11000, both similar quality, the second lot made the paper but not a mention of the first, you never the lower prices

I started a thread on a similar topic a while back. I saw a story in the paper where a farm was hyped up in advance as expected to make 30k an acre. When the auction came and it made 23.5k an acre, it was then hyped up as a great price for the seller.

If I achieve a price that is only about three-quarters of what I said I was expecting to get, I wouldn't be hyping it up as a great sale price for me.

https://www.boards.ie/discussion/2058274802/why-do-journalists-all-hype-up-prices-for-things

The last few years you had non-farmers with a lot of money sitting in cash who thought "I'm getting 0% interest, and threatened with negative interest whereas if I buy farmland I can rent it out for a tax free income".

The current environment won't be seeing those people coming into it any more.

Places set up with a company structure which have a high level of income flowing in due to high prices will still be looking for somewhere to put that money. Thar income stream is far from guaranteed though.

Land price also depends on infrastructure. A decent road into and through the farm is worth 1-1.5k/ acre. At present fertility of land could be worth the same. Fencing and water 1k/ acre. A decent shed 1-2k/ acre

Last year a farm made 20k/ acre the other side of Limerick. However it was a working farm with a residence. All you had to do was pull up the truck and unload the cows and start milking.

Roadways and fencing are. But the overall limit is 90k this limits you if you have other investments. This is an issue with dairy farmers who hit that limit very fast.

Land price entirely depends on who can pay more on the day. If 2 ppl want it infrastructure doesn’t come into it

local farm here made €23,300/ac earlier this week

a dry stock farm with a few dry sheds, a house in need of a big renovation and land that would take 6 t of lime to correct phn

It not just a new shed, a silage slab would probably eat 30k, a larger milk tank. You may need to cover an open tank or you what will catch many over the next five years is a new calf shed when the new calf rules come in.

This is my point existing infrastructure has a substantial value when you are buying land.

r.

Ya the set up might not be hectic but it was still physically there.

Lads are milking out of worse places. You have to allow the location added a couple thousand an acre and that near the city businessmen will always be a factor.

But even dated infrastructure would have added to the value.

Infrastructure generally has fcukall to do with final price, mainly depends on how many are interested in it and what lads are willing to pay/ accept. Have seen places well setup get no more than average prices and places rundown get mad money simply based on the number of people interested.

Infrastructure would have more of a bearing on rental prices alright

It depends completely on who wants it. I was looking at a n auction of a piece of commonage last year that was estimated to go for 10k... it went for 60 😬

Often look at Dairy Farms for sale in Australia and the run of it is usually 5500 euro a acre for turn-key Farms including a good house and depending on size a managers/farmworkers house is usually available too.....

You'd often be looking at 400 acre Farms with a rotary and feed-pad that would of cost 2 million aussie dollars when installed and the total farm is going for 4 million australian dollars, theirs no value put on infrastructure out their at all

Best of luck with your purchase. Is it close enough to draw slurry to and silage from?

401 Purrumbete Estate Rd

https://maps.app.goo.gl/QGxi2YMmdy1dNpjo9

It's along way from cork tho. So that rules that out. Because everyone wants to be in cork

Do you mean depreciate?