Author Topic: Land Value Help?? (Read 7814 times)

bj_cardiff · « **Reply #15 on:** March 08, 2017, 08:28:02 am »

Its a difficult one.. If a fishing club was to buy it it could be worth a fair bit. But if their not interested I'd say 20k would be about right for 2 acres. Although it depends on your area. If there's lots of horsey people willing to pay a lot for small fields then they'd push the price up.. I guess it depends how much cash you have and how much you want it?

Womble · « **Reply #16 on:** March 08, 2017, 03:58:48 pm »

Another angle is to look at it as a straightforward investment, the same as any other.

If it pays an income of £2,000 p.a., and incurs upkeep (weed cleaning, mowing) costs of £500 p.a. say, that's a net income of £1,500 p.a. Then insert the 'yield' value of your choice; let's say 5% for now. That indicates a value of 1500 / 0.05, which equals £30,000.

Then adjust upwards or downwards depending on whether you think the income will go up or down in time, whether a change of use to a caravan park could get you more profit, etc etc.

Does that help?

Womble · « **Reply #17 on:** March 08, 2017, 04:01:20 pm »

Another more emotional way to look at it is to ask yourself if I just found out that the land had just sold to somebody else for £X, what would £X have to be for me to say:

a) never mind - I didn't want it that much anyway,
b) darn, I could maybe have stretched to that, or
c) damn! I'd have paid that much for it in a heartbeat!

That gives you a decent spread of numbers, which you can then compare with the more rational result in my last post. The true answer then probably lies somewhere in the middle!

Jukes Mum · « **Reply #18 on:** March 08, 2017, 04:09:31 pm »

Quote

Another more emotional way to look at it is to ask yourself if I just found out that the land had just sold to somebody else for £X, what would £X have to be for me to say:

a) never mind - I didn't want it that much anyway,
b) darn, I could maybe have stretched to that, or
c) damn! I'd have paid that much for it in a heartbeat!

That gives you a decent spread of numbers, which you can then compare with the more rational result in my last post. The true answer then probably lies somewhere in the middle!

What Womble said!
It's worth however much its worth to you.
We happily paid over the odds for the field next to our cottage as we wanted it. No regard to what it was worth to someone else who didn't live next to it.