Smallholders Insurance from Greenlands

Author Topic: Land Value Help??  (Read 5072 times)

Wood

  • Joined Jan 2011
Land Value Help??
« on: February 06, 2017, 12:25:19 pm »
Hi,


There is a piece of land next to us that has recently come up for sale. It is around 2 arces and has a large pond / lake on. It used to be leased by a fishing club who stocked the lake and paid around 2000 per yr ion rent. However they have moved out and taken as much of the stock as they could net.


Allot of the fishing pegs are now rotten and there are alot of reeds / growth on the lake edge.


Can anyone give me an idea / guess as to what the land is worth? It is obviously worth more to me than anyone else since it is next to my smallholding.


Thanks

harmony

  • Joined Feb 2012
Re: Land Value Help??
« Reply #1 on: February 06, 2017, 01:18:42 pm »
That is a "how long is a piece of string" question. Anything is basically worth what someone will pay for it depending on how much they want it and can afford. There are so many factors to consider. Might someone see a business opportunity for example.




chrismahon

  • Joined Dec 2011
  • Gascony, France
Re: Land Value Help??
« Reply #2 on: February 06, 2017, 01:24:44 pm »
Think you will need some more information about the legal side first Wood. Are there any restrictions on the use or any access rights or issues? I'd be reluctant to buy a pond with the current Avian Flu issues because of the attraction to migrating ducks and geese.


You may find that the 'value' depends simply on what someone is prepared to pay for it, rather than some formula. However that figure may not meet the owner's expectations and any purchase negotiation could drag on for years.


How much profit do you think you could produce from it? Would it exceed the cost of borrowing, or if you are lucky enough to have cash, the interest invested elsewhere?

Wood

  • Joined Jan 2011
Re: Land Value Help??
« Reply #3 on: February 06, 2017, 01:26:11 pm »
I totally agree and agree it is probably worth more to me than anyone else. When we bought the small holding we were offered the lake for 70000 and at that point it was being leased by the fishing club.


They have now left since the landlord wasn't maintaining the lake as part of the agreement. However the land owner has offered it to us for 80000 but I think he is just having a punt.


Hence why I asked if anyone had any idea of its market value?

farmershort

  • Joined Nov 2010
Re: Land Value Help??
« Reply #4 on: February 06, 2017, 01:26:38 pm »
minimum land value = 20,000

Maximum land value = 100,000

Maximum value as "business or potential business" = anyone's guess!

This is based on us spending years chasing small plots of land. a small plot of land, with access is generally considered to be worth 10,000 per acres, plus or minus a couple of grand depending on where it is in the country, etc etc. The trouble is, anything that looks like it could have a nice caravan on it, and one day a house, will fetch 100,000 no problem. You're best hope is if it goes up for sale as a bit of land with a pond. If it goes up for sale as a going concern, then it may well be silly money.

Do you know the landowner? sometimes it's worth discussing an offer.... of course sometimes it's not..

Wood

  • Joined Jan 2011
Re: Land Value Help??
« Reply #5 on: February 06, 2017, 01:27:28 pm »
I hadn't considered the Avian Flu since there are a few ducks on the lake.

farmershort

  • Joined Nov 2010
Re: Land Value Help??
« Reply #6 on: February 06, 2017, 01:39:11 pm »
I hadn't considered the Avian Flu since there are a few ducks on the lake.

Avian flu wont affect the price. land/water owners are not liable for wild birds.

pharnorth

  • Joined Nov 2013
  • Cambridgeshire
Re: Land Value Help??
« Reply #7 on: February 06, 2017, 01:59:07 pm »
The water birds will be there next to your smallholding regardless of whether you buy it or not. Can't see how that increases the risk.

bazzais

  • Joined Jan 2010
    • Allt Y Coed Farm and Campsite
Re: Land Value Help??
« Reply #8 on: February 06, 2017, 05:55:19 pm »
If your buying at the 20,000 - 100,000 youd need to see the past accounts of the business your buying off as its the business your buying - if its a lake in a 2 acres field - pay no more than 10,000

bazzais

  • Joined Jan 2010
    • Allt Y Coed Farm and Campsite
Re: Land Value Help??
« Reply #9 on: February 06, 2017, 05:55:51 pm »
if that

landroverroy

  • Joined Oct 2010
Re: Land Value Help??
« Reply #10 on: February 06, 2017, 10:03:38 pm »
How often does land come up for sale right next to you?
It's worth whatever you think it's worth and according to what you think you could do with it.
If you got it for 10,00 an acre or less I think you'd do well. You won't make a fortune from fishing but there has to be some income there. More profitable is camping/caravanning. You can start off with pretty basic amenities and build it up.
If it's a pretty site you could advertise it for weddings. Marquee, toilets and generators can all be hired for the occasion.

I bought 18 acres with a lake 8 years ago and believe me it can be profitable if you find a use that suits you. (Certainly a lot more income from a lot less effort than running a smallholding!)
Rules are made:
  for the guidance of wise men
  and the obedience of fools.

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
    • Facebook
Re: Land Value Help??
« Reply #11 on: February 07, 2017, 12:03:36 pm »
I'd be reluctant to buy a pond with the current Avian Flu issues because of the attraction to migrating ducks and geese.
 However that figure may not meet the owner's expectations and any purchase negotiation could drag on for years.
A lot depends on whether the owner needs to sell it now or not.  It's worth less just now becasue of the bird flu.
If not on the market yet, go and see him/her and ask.  Why would it be worth more to you than anyone else?  Land is land - it could have building potential
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

greenbeast

  • Joined Jul 2014
Re: Land Value Help??
« Reply #12 on: February 07, 2017, 03:04:22 pm »
I'd be reluctant to buy a pond with the current Avian Flu issues because of the attraction to migrating ducks and geese.
 However that figure may not meet the owner's expectations and any purchase negotiation could drag on for years.
It's worth less just now becasue of the bird flu.

really?
if i was looking at it, i would not be thinking about the next 2 months but the next 20 years

Buttermilk

  • Joined Jul 2014
Re: Land Value Help??
« Reply #13 on: February 09, 2017, 08:34:43 am »
Bird flu is a red herring and totally out the equation.

How close to habitation is the land? How much of it does the lake cover? Would it be of interest the pony brigade? Or is it just amenity land? Each affects the value. Plots like that round here also attract conservation groups who are determined that they are natural havens that do not need interference from man.

I suspect that at the lowest end of the valuation the 2 acres would come in at 35,000 and as a serious business proposition it could be the value that it is being offered to you. You have to decide if you would aim to run it as a business or if you only wish to extend your current holding, this would determine its value to you.

hexhammeasure

  • Joined Jun 2008
    • golocal food
    • Facebook
Re: Land Value Help??
« Reply #14 on: February 09, 2017, 08:46:11 am »
no one has asked why the fishing tenants left. did the fish have parasites or infection? talk to your local EA agent to see if there are restrictions in place before considering as a fishery

Ian

 

Scrub land and Waste land.

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