Ideas needed!! How do I make a 100 acre piece of rural land pay for itself?

Hi all,

As per my post in innovative techniques, my hubby & I are interested in purchasing a 100 acre parcel of rural land.

The property would cost us apprx $250 a week in loan repayments.

There is no house on it so no opportunity of rental income.

There is 1 dam.

We are interested as my IL's live in the same street in this rural town.

There is potential of FIL overseeing the property.

My question is....how can we get this land to pay for itself?

How much would others pay for agistment of animals?

Is grazing cattle etc likely to create any form of income for us?

Does anyone know where i may get some answers to these questions?

Kind regards,

AA
 
What about checking the local shops for rates for adjistments. Consider goats ? as a stock, they will clean up any rubbish plants and will not spread seed.

Not sure where you are so will depend on how many stock per acre the place can manage as to return on adjistment.

Brian
 
Hi,

As the inlaws live there I would be taking them in tow and asking people. If they are retired, they might enjoy doing some investigating for you, I know I would :)

If it is real country, talk to the local stock and station agent or rural supplies people. They may know all the gossip and the possible carrying capacity of the land.

Quite often neighbouring working farms will lease the land, TopCropper leases part of his land, he may have some suggestions.

HTH
 
Quite often neighbouring working farms will lease the land, TopCropper leases part of his land, he may have some suggestions.

HTH


We lease 400 hectares for $200 per hectare per year. So thats 80k per year.

The land we lease would be worth $6000 per hectare, so the bloke who owns it is getting 3.33% return. It was worth $300 per hectare for it in 1975.


See ya's.
 
My question is....how can we get this land to pay for itself?
How much would others pay for agistment of animals?
Is grazing cattle etc likely to create any form of income for us?
Does anyone know where i may get some answers to these questions?

Kind regards,

AA


Is it close to town? If so, agistment for horses from the town folk might make a bit? Horses are terrible for pastures and grass though. Check out any paddock with horses and it's always full of weeds.

To really know how much you can make you have to know the quality of the land. You need to ask a stock and station agent or some other local and get a realistic valuation.

Most farms don't make a big return. Even a large efficient farm run by a top operator might only make a 5% return on average. So expect lower than that. Farm land is the same as resi real estate. It only makes sense as an investment if you assume it doubles in value every 10 years as it has done for 60 years or so.


See ya's.
 
i would say look at grazing, agistment etc.

something a lot of people forget is hobby farm rental - that is, draw imaginary lines on a map and "rent" the individual spaces to hobby farmers.

with the uber-desire to get close to anything "natural". you could easily make $250 a week off 10x little patches of dirt - would only take up 10 acres (10x 1 acre lots) and rent each one for $25 a week. or do twenty at $10 each + grazing for the remaining 80 acres at $100 month.

there's always a way to make money out of property.
 
Hi all,

As per my post in innovative techniques, my hubby & I are interested in purchasing a 100 acre parcel of rural land.

The property would cost us apprx $250 a week in loan repayments.

There is no house on it so no opportunity of rental income.

There is 1 dam.

We are interested as my IL's live in the same street in this rural town.

There is potential of FIL overseeing the property.

My question is....how can we get this land to pay for itself?

How much would others pay for agistment of animals?

Is grazing cattle etc likely to create any form of income for us?

Does anyone know where i may get some answers to these questions?

Kind regards,

AA

Build a golf course and make it a fully-public venue with carts, a modest but nice clubhouse with well-priced snacks and drinks. A liquor license would be an advantage down the track.

Make sure the drink cart goes around all day, have lots of good hire equipment and good stocks of cheap balls, tees and gloves, a few hats, and umbrellas etc.

Don't bother with golf sets, bags or buggies - no hardware.

As you expand, put in a few units or cabins for cheap accommodation.

Sit back and watch the cashflow.
 
i would say look at grazing, agistment etc.

something a lot of people forget is hobby farm rental - that is, draw imaginary lines on a map and "rent" the individual spaces to hobby farmers.

with the uber-desire to get close to anything "natural". you could easily make $250 a week off 10x little patches of dirt - would only take up 10 acres (10x 1 acre lots) and rent each one for $25 a week. or do twenty at $10 each + grazing for the remaining 80 acres at $100 month.

there's always a way to make money out of property.

this may be good BUT, you'd need to think about the following before contemplating any of the above:

- do you have electricity to the block - if not, then you'd be up for about, or at least, 13-20k depending on supplier for a transformer and cabling. If you want to do the above, then you may may have lay the infrastructure to supply those blocks described above. Very expensive.

- what is your water situation like? if you are thinking of the above, then think of how much water you may may need for each block. Can you drop bores?

- telecommunications? If you go for the above, then each block may require telecommunications cabling. trendy inner city folk who think they are going green may also want ADSL - are you able to get that?

So the above idea may be good on paper but in reality, it may not be feasible.

A couple of suggestions:

- grow small crops of items like garlic, mushrooms, specialised herbs etc. You may get some good boutique style of business from those type of crops.

- build a couple of self contained 1 bedroom cabins from kit home suppliers and offer weekenders for city folk (you may also need electricity cabling etc for each cabin though). Big investment.

- agistment - you've already mentioned this.

this is my favourite...

- segregate a few acres, beautify it and create/open a pet cemetery. Don't laugh. some big money here if you target the right clients and not much start up required.



g
 
Above Average

I can answer some of your questions but first I need to ask - what is your reason for buying the property?

As an investment for future capital growth?
To eventually build and live on yourself?
As a lifestyle block – one that you could visit and run around on motorbikes on the weekend?
Or some other reason?


Kinga
 
- do you have electricity to the block - if not, then you'd be up for about, or at least, 13-20k depending on supplier for a transformer and cabling. If you want to do the above, then you may may have lay the infrastructure to supply those blocks described above. Very expensive.

- what is your water situation like? if you are thinking of the above, then think of how much water you may may need for each block. Can you drop bores?

- telecommunications? If you go for the above, then each block may require telecommunications cabling. trendy inner city folk who think they are going green may also want ADSL - are you able to get that?

it's a hobby farm - byo shed and water tank and generator!
 
AA , there is not really enough information about this 40 hectare block .

Qustions that come to my mind might be something like the following .

Soil type?
Is it flat?
Free draining soil?
Is it fenced at all?
What has it been used for in the past?
Is there a water supply/s?
Fertiliser history?
Can spraying be done or is it surrounded by vinyards etc?
Annual rainfall ?

My father owns a property about this size and grows maize on contract to dairyfarmers and does very well . Especially considering contractors come in and do all the work .

With this years opening milk prices looking very positive I'd reckon he will be looking to increase in his prices no doubt .

I agree with TC comments as above FWIW .

Good luck .
 
it's a hobby farm - byo shed and water tank and generator!

Are there many people who would rent land and then put their own shed and tank on it? What happens if they want to leave - do they have to take their tank and shed with them?

Do people really do that?


g
 
gg, i think aaron meant that people would just use the land to grow stuff but not live on it. Like they do in the city where people have 'allotments'. One of the guys on gardening Australia grows his stuff on one. These would just be on a bigger scale.
 
Are there many people who would rent land and then put their own shed and tank on it? What happens if they want to leave - do they have to take their tank and shed with them?

Do people really do that?


g

This happens all the time.

Many golf courses are done this way, and I'm sure another type of project would work.

A typical example is a 99 year lease. Coucils and Gubbmints have been doing it for a long time.
 
gg, i think aaron meant that people would just use the land to grow stuff but not live on it. Like they do in the city where people have 'allotments'. One of the guys on gardening Australia grows his stuff on one. These would just be on a bigger scale.

yep spot on Joan.

they could take it with them, or leave it behind - doesn't make an ounce of difference to the LL.
 
This happens all the time.

Many golf courses are done this way, and I'm sure another type of project would work.

A typical example is a 99 year lease. Coucils and Gubbmints have been doing it for a long time.

the entire state of the ACT is built like this.
 
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