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Hi Vyvyen,
I’m no expert on structure, so I’m sorry I can’t answer your question. However, I would see purchasing a farm as quite different to what you may be used to – with a farm you are not only purchasing land + infrastructure, but you are also effectively purchasing a business. You need to consider if you want that in retirement. Perhaps consider smaller lifestyle block?
I would suggest running cattle and cutting hay will take much more time (and money) than you expect, especially if you have not done it before. Have you researched prices for those commodities lately? (cattle prices atm are at record highs & industry forecasts say that these levels are not sustainable).
I’m not wanting to put you off, just trying to throw in a dose of realism. All the best.
Fin.
Some great comments on this post – thanks.
WWJD, I recently read a newspaper article (SMH?) on this topic, and the authors’ conclusion was that renting was better than buying.
However, the author did say that if:
1. interest rates remained stable (ie. not rising)
and
2. house prices continued to rise (as per boom)
then you may be better off buying now.So, you need to consider whether those things are likely in today’s environment.
The only big proviso made was that you should save (and invest) the difference between what you would pay for your mortgage, and what you actually pay in rent.
When renting it can be easy to blow the extra on ‘living’. But, if you are disciplined, then saving and investing the extra is likely to pay off down the track.
Personally, I’ve chosen to rent instead of buy, which is working for me.
I would also be very interested in seeing the spreadsheet Terry, if you don’t mind!
Cheers, Fin.
I posted just such a question I guess, but mainly because the forum topic is Help, and that’s what I’m after – some advice from people who’ve been there and done that. I’m pretty keen on learning more, and one way to do that is ask questions. Besides, what’s that saying about a little bit of knowledge being a dangerous thing?!!
Thanks for the weblinks JackHu, will look them up.
Cheers, Fin.Thanks for the tips so far.
Redhaven, shows me I need to think more outside the square!
cbrenner, yes, I added those figures to the right box in the calculator.
Mortgage Advisor – I have that from saving over time (I’m 34 & to date I have been investing in shares & managed funds). Hindsight is great and I now know that I should have been much more proactive with my investing, ie. using good debt. Lack of knowledge & procrastination led me missing out on the boom[angry2]! As for available ca$h, I could access 35K immediately, but the remainder is also pretty easy to get at. Based on my current income, the broker I visited today told me I could access a 280K loan no problem for a PPOR with a 70K deposit, avoiding mortgage protection insurance. He also said I could access more if I was investing, but is getting back to me with a specific figure.
I have some plans/goals in my head that I really should get sorted and on paper before jumping in, because I really want to make the most of what I have available.
Cheers, Fin.
