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Author Topic: Is buying more land ever a bad idea?  (Read 3692 times)

Whittsend

  • Joined May 2013
Is buying more land ever a bad idea?
« on: October 15, 2014, 10:25:51 am »
  We have approached our neighbouring sheep farmer, who is also a friend, with a view to purchasing about three acres of land adjacent to ours.  He is not far off retiring and intends selling his farm, and several hundred acreas, when he does. He is willing to sell us three acreas, but has offered us the opportunity to buy the whole of that adjacent  parcel  of land, which amounts to about twelve acreas.  It is rough grazing, although about two acreas have been used as a hay crop field in past years.  About a quarter of the land is steeply sloping and there is about a third of an acrea of fairly wet land with soft rush growing.  It does have road access at two points. I am fortunate to have some money I inherited, sitting in a building society, making next to nothing in interest. I am wondering if this would be a good investment to make our tiny  smallholding ( only two and a half acres at present) a more attractive property for the future.   Another sheep farmer has already approached our friend to see if he would be willing to rent him this parcel of land for his young son to set up his own small flock. If we bought the land I couild fence off the area I need for my sheep/horses  and rent the remainder. Does anybody know what the going rate for renting grazing for sheep is at the moment? Not a great deal I suspect . Any thoughts/ warnings/ advice would be much appreciated. 
« Last Edit: October 15, 2014, 04:23:46 pm by Whittsend »

Yeoman

  • Joined Oct 2010
  • South Northamptonshire
Re: Is buying more land ever a bad idea?
« Reply #1 on: October 15, 2014, 10:44:24 am »
To coin an adage: they're not making it any more are they!

If you can afford it - get it but any income will be negligible.  You are likely to see the capital value rise over your lifetime but its more about the security of knowing that it's yours.

Foobar

  • Joined Mar 2012
  • South Wales
Re: Is buying more land ever a bad idea?
« Reply #2 on: October 15, 2014, 11:27:03 am »
Buy it!

si-mate

  • Joined Aug 2010
  • Kent
Re: Is buying more land ever a bad idea?
« Reply #3 on: October 15, 2014, 11:54:07 am »
Buy it!


Also remember in certain circumstances farmland is free from inheritance tax so is a good way of passing on wealth to the next generation.

MarvinH

  • Joined Oct 2011
  • England
Re: Is buying more land ever a bad idea?
« Reply #4 on: October 15, 2014, 12:01:11 pm »
If the price is fair buy it.
Sheep

Whittsend

  • Joined May 2013
Re: Is buying more land ever a bad idea?
« Reply #5 on: October 15, 2014, 01:10:18 pm »
Thank you for your comments.  I think that's probably a decision then. :thumbsup:

silkiechick

  • Joined Apr 2011
Re: Is buying more land ever a bad idea?
« Reply #6 on: October 15, 2014, 01:43:32 pm »
land next to your own rarely comes available buy it buy it buy it  :excited:

mowhaugh

  • Joined Jul 2013
  • Scottish Borders
    • Facebook
Re: Is buying more land ever a bad idea?
« Reply #7 on: October 15, 2014, 01:44:46 pm »
I agree with everyone above, as long as you can afford it and can look on it as a long term investment, land is always a good thing to buy.

Bramblecot

  • Joined Jul 2008
Re: Is buying more land ever a bad idea?
« Reply #8 on: October 15, 2014, 03:14:05 pm »
Buy, buy, buy!  You will be nearly at the 5 hectares you need  to be considered for the new basic farm payment.  My biggest regret is not buying the few acres next to the property which subsequently became our house :( - even though it seemed a fortune at the time. 

Buttermilk

  • Joined Jul 2014
Re: Is buying more land ever a bad idea?
« Reply #9 on: October 15, 2014, 04:03:27 pm »
You will be over the magic 5 hectares which makes you a farm in the eyes of planners ect so can be a big help if you wish to put up a barn at some stage in the future.

Anke

  • Joined Dec 2009
  • St Boswells, Scottish Borders
Re: Is buying more land ever a bad idea?
« Reply #10 on: October 15, 2014, 05:17:28 pm »
Buy it! Before friendly farmer changes his mind!

ellied

  • Joined Sep 2010
  • Fife
    • Facebook
Re: Is buying more land ever a bad idea?
« Reply #11 on: October 15, 2014, 05:21:45 pm »
Getting to the magic acreage for building, payments and scheme payment, plus security over nearby land use plus investment value - no brainer if you have the cash.  Imagine all the other things a buyer might choose to do around your home and holding that you my ght not want.

It isn't as if your money is working for you at current interest rates!
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Whittsend

  • Joined May 2013
Re: Is buying more land ever a bad idea?
« Reply #12 on: October 16, 2014, 09:04:13 am »
Many thanks to everyone who has replied. I hadn't even considered the advantages of being over the "magic" 5 hectare figure, or what else may happen on that land when our friend does sell up in the future.  I now believe it is an opportunity too good to miss.
I knew I could rely on forum members to come up with sound advice. :thumbsup:

Backinwellies

  • Global Moderator
  • Joined Sep 2012
  • Llandeilo Carmarthenshire
    • Nantygroes
    • Facebook
Re: Is buying more land ever a bad idea?
« Reply #13 on: October 16, 2014, 09:12:39 am »
Just to add ..... The 5 ha min for basic payment , the 5 ha must be all farmed... Our original 16 acres would not have qualified due to woodland, building area etc.
 We were also lucky enough to buy further acreage adjoining our land ...... You will never regret the investment.





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