What LVR on rural property?

[Sunfish]

TC has got me thinking about rural property.

There is a sugar farm on the market up here in the north for $300k and the vendor is willing to rent back for a couple of years. I know the sugar industry is depressed ATM but I suspect it will improve. If so there will be useful appreciation, if not I've got a 100 acre house block.

So, is 60% lend as much as I can expect?

 

[pursefattener]

Hi SF

I have my Agri finance through the NAB and have done so for years .

With dairy and quality grazing land in good rainfall areas I have seen them go a lot more than 60% . My knowledge of the sugar industry is zip .

Sounds interesting though . Whats the house like , if it has one ?

TC 's got me thinking too....

Shawn

 

[Eee]

sounds interesting.

I don't know anything about sugar farming, so maybe it is different, but we got a 70% lend on 300 acres. It has a house and workshop as well though. In not a great farming area, very rocky and pitiful rainfall.

The 70% we got though may of been the brilliant broker though. I get the impression (although I don't know for sure) that other property owners in this area who are with ANZ did not get near the same LVR.

 

[Peter_Tersteeg]

60% LVR should be no problem, possibly 70%, but there's a few variables. I assume it will be a full doc loan.

60% can be done on a lo doc business loan, or 50% LVR on a no doc, but rates are higher than most people are used to.

 

[Sunfish]

There is no house but it is fertile and high rainfall. But I made a couple of phone calls today and, roughly, you need over 100 hectares to be viable. $35/ton if you can get 13.5 ccs and 80 - 100 ton/hecatre. I had contact with the sugar industry over 40 yrs ago and 40 acres was OK then, if you had the rain and good country.

But I'm not wanting to be a farmer, too old for that. LOL But a tree change block with plenty of clean water that I can get a bit of rent from and breed some discus fish, sounds OK. You need $200k to buy a crappy block you couldn't grow a tomato on here in town.

 

[Sunfish]

60% LVR should be no problem, possibly 70%,

The low LVR would be OK really. This is a retirement venture and one shouldn't retire with a big debt.

Would it be possible to get 80% to build the house though?