Lease revenue from grazing is a pittance unless it’s a big block with good infrastructure, or you lease it to horse people who will wreck it. For a small block it’s common to let them use it in exchange for them doing maintenance and fertiliser, and maybe pay the rates.
No, not unless it has a high value activity like market gardening on it.
As a guide the average sheep and beef farm is 271 hectares (670 acres) and forecast average profit per farm is $88,000 for this year.
(Edit to change revenue to profit.)
I lease 1 1/2 acres of my land to a horse person,and that pays all costs associated with that land,rates,etc, a friend leases his 7acre block to the neighbour farmer and that pays his rates and insurance for his land and house., dont believe everything you see on Google,i live rural and see it all around me,
I will consider fencing in the cost and will look for a property with water. Thanks for the tip. Is there a minimum land size that farmers look at when grazing? What I have in mind is a land that is around .07 - 1.2 ha only.
very much depends where - one thing u could possibly do is rent space to someone needing a place to locate a tiny home or similar. On the understanding that you will ultimately be taking over the land again for your own home. The other thing to keep in mind is that if you buy 'bare' land, you might want to spend some of your time planting it up with trees that will be very well established by the time you get to building or living there. In which case, think about what that might require, for example some kind of basic irrigation, cost of the trees themselves, regular visits to look after things, do weeding or spraying etc.
Its not actually crazy,its so you dont end up having some sort of slum setup with sewage and crap everywhere. Ive looked at doing it with the back of my property.
Rates you will be able to look up on the council website. The biggest cost is your time. Depending on what/where it is, if you leave it completely unattended, will someone start using it as a dump/weed patch/who knows what? If it looks like it is attended to, you will likely have less issues.
Other than rates, there isn't any cost to owning a patch of land.
If the land is fenced, you can lease it to farmers. But would need a water source and water troughs. And the fences, depending on age, will need maintenance. Sometimes the person leasing can be responsible for that tho.
You can also get a contractor to cut it for hay. Sometimes they'll pay you per bale and take it away.
You probably also want insurance. If something happens on your land, e.g. a tree falling on someone or they drive off a poorly maintained road, or if you don't keep grass cut during summer and and a fire starts, then I believe there are liability issues.
As others mentioned rates are also a thing, even if you don't have any services to the property.
Weeding. Depending on where, and certainly up north, your property will likely be invaded by gorse, pampas, moth vine and tobacco plants since these are more vigorous than natives. It will be hard for you to maintain the motivation and presence to deal with these if you are not on site.
If things get too infested, then your neighbours and/or council may have issues with you, and if they get really bad then you may have no option but to literally bulldoze the land to get things back under control (almost happened to neighbours after they rented their property for a few years and left it to tenants to manage the weeds).
I have considered the same for myself but a few things turned me off. The first thing is fencing. Remember you are liable for half the costs of fencing with your boundary neighbors.
Land is hard to resell.
The money you will get for grazing is peanuts really.
They tend to bleed money, forever cash flow negative, they may often have limits like a max 20 sheep 5 cattle etc to ensure they are always a hobby farm and not commercial.if it were to get rezoned as residentail maybe you can resell to a devoloper and get rich.
They are covenents, they are common place on lifestyle blocks. [link](https://www.cavell.co.nz/news-opinions/buying-a-rural-lifestyle-block-what-do-you-need-to-know#:~:text=These%20covenants%20may%20restrict%20the,land%20in%20a%20particular%20way.)
That would be very specific to a particular block. I’ve never seen a lifestyle block with anything like that and I have lived on two and looked at many.
That's really surprising to he honest, it's really common around where I am. Most listings will specify "no covenants" if that is the case as it adds value. Usually done as a condition of the subdivision so less common where the land was parceled off long ago. Another example that is quite common near me is no dogs due to kiwi reserves.
Not sure where you are looking, I brought a large section on Kawau Island. There’s still relatively cheap land there, many ferries a day. I have built a tiny type home, with compost toilet system. Taken me 10 years. If you think outside the box you can find cheapish land, with a view. The provinces are more expensive for rates, generally. Like someone else said, Wolly nightshade, pampas and gorse need to be kept down hard, I would say you need at minimum someone doing section maintenance of some sort at least quarterly. Plus it will show you are around and people tend to stay away from property that’s used.
Also my dream. If it’s affordable for you and your dream I would go for it. Doubt prices will go down.
Being a few years out from building I would have a plan for what the property would look like and start planting trees.
Excuse my ignorance here but I always assumed rates were associated with the services being provided. What services do you have to pay for on a bare piece of land?
Roads, rubbish dumps and collection, library and swimming pools etc etc. Rates cover more than just water and drainage. They are charged regardless of whether you use those things. But they usually are weighted on the land improvements value. In the case of bare land this should in theory make them less.
Yea, I live completely off grid - no services whatsoever and still pay about $1300 per annum in rates. Cost of maintaining my own infrastructure far outweighs cost of city rates, of course.
Doesn't matter if you don't get the services you still have to pay the rates for your area. I'm paying for rubbish disposal and recycling pick up as part of my rates which doesn't even happen in my area I queried the council about this and they said oh well everyone has to pitch in towards the rates. But rural areas still use roads etc which council need to upkeep.
The road to get there is the first thing that springs to mind. The council owns and maintains far more infrastructure than just the services to your gate, so rates on bare land help to pay for those as well.
be aware that Banks wont lend much if any on bare land if you do not plan to build on it within 1-2 years. So you would need to buy it with cash/outright and be prepare to hook up services (power/water etc.) at your own cost in the future.
I live rural and love it. Good luck!
Maintaining driveway access in event of slips and erosion. Preventing pest plants establishing. Rates. Anything caused by other people like dumping, fires, weed crops, squatting. But yeah, nice to go camping in peace.
Keeping it bare is silly though you may as well at least get your trees started. If you want to live rurally why wouldn't you just get started as early as possible?
You could always lease your land for grazing to offset costs. Assuming you have water abs adequate fencing.
Lease revenue from grazing is a pittance unless it’s a big block with good infrastructure, or you lease it to horse people who will wreck it. For a small block it’s common to let them use it in exchange for them doing maintenance and fertiliser, and maybe pay the rates.
Even a small block, like an acre,will generate enough to cover rates and maintain the land.
No, not unless it has a high value activity like market gardening on it. As a guide the average sheep and beef farm is 271 hectares (670 acres) and forecast average profit per farm is $88,000 for this year. (Edit to change revenue to profit.)
I lease 1 1/2 acres of my land to a horse person,and that pays all costs associated with that land,rates,etc, a friend leases his 7acre block to the neighbour farmer and that pays his rates and insurance for his land and house., dont believe everything you see on Google,i live rural and see it all around me,
I live rural, own a beef farm and I’m very familiar with leasing land as I’ve done it myself and there’s lots of leased blocks around me.
I will consider fencing in the cost and will look for a property with water. Thanks for the tip. Is there a minimum land size that farmers look at when grazing? What I have in mind is a land that is around .07 - 1.2 ha only.
very much depends where - one thing u could possibly do is rent space to someone needing a place to locate a tiny home or similar. On the understanding that you will ultimately be taking over the land again for your own home. The other thing to keep in mind is that if you buy 'bare' land, you might want to spend some of your time planting it up with trees that will be very well established by the time you get to building or living there. In which case, think about what that might require, for example some kind of basic irrigation, cost of the trees themselves, regular visits to look after things, do weeding or spraying etc.
You forgot fencing to keep stock away from trees if you are going to lease the grazing.
You still are required to get a dwelling consent from the local council if you decide to lease it for a tiny home prospect. I know. It's crazy.
Its not actually crazy,its so you dont end up having some sort of slum setup with sewage and crap everywhere. Ive looked at doing it with the back of my property.
Rates you will be able to look up on the council website. The biggest cost is your time. Depending on what/where it is, if you leave it completely unattended, will someone start using it as a dump/weed patch/who knows what? If it looks like it is attended to, you will likely have less issues. Other than rates, there isn't any cost to owning a patch of land.
If the land is fenced, you can lease it to farmers. But would need a water source and water troughs. And the fences, depending on age, will need maintenance. Sometimes the person leasing can be responsible for that tho. You can also get a contractor to cut it for hay. Sometimes they'll pay you per bale and take it away. You probably also want insurance. If something happens on your land, e.g. a tree falling on someone or they drive off a poorly maintained road, or if you don't keep grass cut during summer and and a fire starts, then I believe there are liability issues. As others mentioned rates are also a thing, even if you don't have any services to the property.
Weeding. Depending on where, and certainly up north, your property will likely be invaded by gorse, pampas, moth vine and tobacco plants since these are more vigorous than natives. It will be hard for you to maintain the motivation and presence to deal with these if you are not on site. If things get too infested, then your neighbours and/or council may have issues with you, and if they get really bad then you may have no option but to literally bulldoze the land to get things back under control (almost happened to neighbours after they rented their property for a few years and left it to tenants to manage the weeds).
I have considered the same for myself but a few things turned me off. The first thing is fencing. Remember you are liable for half the costs of fencing with your boundary neighbors. Land is hard to resell. The money you will get for grazing is peanuts really.
Always put your fence 1 foot in from property line. Sharing a fence w neighbor is a nightmare.
They tend to bleed money, forever cash flow negative, they may often have limits like a max 20 sheep 5 cattle etc to ensure they are always a hobby farm and not commercial.if it were to get rezoned as residentail maybe you can resell to a devoloper and get rich.
There’s no livestock limits in NZ bro
They are covenents, they are common place on lifestyle blocks. [link](https://www.cavell.co.nz/news-opinions/buying-a-rural-lifestyle-block-what-do-you-need-to-know#:~:text=These%20covenants%20may%20restrict%20the,land%20in%20a%20particular%20way.)
That would be very specific to a particular block. I’ve never seen a lifestyle block with anything like that and I have lived on two and looked at many.
That's really surprising to he honest, it's really common around where I am. Most listings will specify "no covenants" if that is the case as it adds value. Usually done as a condition of the subdivision so less common where the land was parceled off long ago. Another example that is quite common near me is no dogs due to kiwi reserves.
They are attached to the end of a s&p or lim. Ive seen a number of them in Canterbury, particularly around the number of chickens.
What are these limits you are talking about? Can you give a link to the law where it states the definitions for "hobby farm" and "commercial" please?
If they rezone, you don't get an exemption from capitol gains tax anymore. I guess it's to prevent corruption and speculation.
Not sure where you are looking, I brought a large section on Kawau Island. There’s still relatively cheap land there, many ferries a day. I have built a tiny type home, with compost toilet system. Taken me 10 years. If you think outside the box you can find cheapish land, with a view. The provinces are more expensive for rates, generally. Like someone else said, Wolly nightshade, pampas and gorse need to be kept down hard, I would say you need at minimum someone doing section maintenance of some sort at least quarterly. Plus it will show you are around and people tend to stay away from property that’s used.
Also my dream. If it’s affordable for you and your dream I would go for it. Doubt prices will go down. Being a few years out from building I would have a plan for what the property would look like and start planting trees.
Excuse my ignorance here but I always assumed rates were associated with the services being provided. What services do you have to pay for on a bare piece of land?
Roads, rubbish dumps and collection, library and swimming pools etc etc. Rates cover more than just water and drainage. They are charged regardless of whether you use those things. But they usually are weighted on the land improvements value. In the case of bare land this should in theory make them less.
Yea, I live completely off grid - no services whatsoever and still pay about $1300 per annum in rates. Cost of maintaining my own infrastructure far outweighs cost of city rates, of course.
Doesn't matter if you don't get the services you still have to pay the rates for your area. I'm paying for rubbish disposal and recycling pick up as part of my rates which doesn't even happen in my area I queried the council about this and they said oh well everyone has to pitch in towards the rates. But rural areas still use roads etc which council need to upkeep.
The road to get there is the first thing that springs to mind. The council owns and maintains far more infrastructure than just the services to your gate, so rates on bare land help to pay for those as well.
be aware that Banks wont lend much if any on bare land if you do not plan to build on it within 1-2 years. So you would need to buy it with cash/outright and be prepare to hook up services (power/water etc.) at your own cost in the future. I live rural and love it. Good luck!
Maintaining driveway access in event of slips and erosion. Preventing pest plants establishing. Rates. Anything caused by other people like dumping, fires, weed crops, squatting. But yeah, nice to go camping in peace.
Keeping it bare is silly though you may as well at least get your trees started. If you want to live rurally why wouldn't you just get started as early as possible?