Investing in a farm in SA now.(non political discussion!!!)

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Mouser
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Re: Investing in a farm in SA now.(non political discussion!!!)

Unread post by Mouser » Wed Aug 05, 2020 8:20 am

C Africa wrote:
Mon Aug 03, 2020 8:36 am
Swartbok,

I have no argument with what you say. I myself was part owner of a game farm near Swartruggens. It was 180km from my driveway to the farm and during the four or five years that we owned it, I was there almost every second weekend, it is a GREAT lifestyle if you still have a job in the city and don't have to rely on the farm for an income.

The reason why I mentioned the lower prices in certain areas:

To buy a 1000ha farm in the Bushveld, will set you back between R10 and R15 million today.
For less than R5 million, you can buy a 5000ha farm in the Bushmanland, bo-Karoo area.


Obviously the Karoo lifestyle is not everybody's cup of Tea, but I love it!!!

@ Mouser: When the economist did your sums for you, did he factor in the way the value of your land increases? they usually fail to do that, have been warning for years that farming is not economical, and the farmers all still laugh all the way to the bank.

Farm land has grown consistently at significantly above the inflation rate for 50 years now, and is still growing. So even if your farm does not make one cent of profit, it is still a good investment.


C
He didn't but it is difficult to estimate based on area and sentiment. It was more about making a decent living at the time. I am in a fairly sought after area and get some offers but they fluctuate subject recently to government policy (EWC particularly), then market conditions for the likely farm products. But I agree, it is a relatively safe investment and if you pick your area carefully, a good one. But now be sure to factor in CGT etc in the outcome.

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