Home
About Us
SERVICES
FEES
REPORTS
Contact Us
Research Steps
FINANCE
Valuation
RESIDENTIAL
COMMERCIAL
INDUSTRIAL
RETAIL
BUSINESSES
RETIREMENT
RURAL
GLOSSARY
SITE INDEX
AFFILIATES
 

Rural Property Investment



At any point in time, the net return on capital invested in rural property - land, plant, & livestock is quite low, particularly considering the risk. However over a period of say 10 years the net financial gain including capital growth is very good.

This is set out below in “Rural Property Investment Research Article” and demonstrates in NSW, that the capital gain returns exceed those for Commercial, Industrial & Residential investments.

The report was completed at the time by Dr. Chris Eves who was then at the University of Western Sydney. He has had considerable commercial experience as a practicing rural valuer and rural land economist before his current academic role. This is a very enlightening report.

Click here to view the Rural Investment Research Article




Professor Chris Eves extended the study on NSW capital growth performance from 1990 - 2005.

Click here to view the extended Capital Growth Article

CAPITAL GAIN - RURAL

The following research was provided by Professor Chris Eves, and can be accessed via the link above.

Return % in
Last 12 Months
Last 3 Years
Last 5 Years
Last 10 Years
Last 15 Years
North Coast
12.9%
13.6%
11.2%
6.2%
5.7%
Hunter
15.1%
11.4%
9.2%
5.8%
TBA
Northern Tablelands
23.9%
12.6%
11.4%
7.2%
5.4%
North West
-0.3%
8.1%
8.9%
8.2%
10.3%
Central West
5.6%
14.3%
13.6%
9.4%
7.4%
Far West
29.3%
6.5%
3.6%
8.9%
4.7%
Murray
23.1%
16.1%
12.5%
9.6%
9.1%
Riverina
-6.7%
8.3%
5.3%
5.5%
6.9%
South West
11.2%
15.5%
13.9%
8.8%
6.3%
Southern Tablelands
5.7%
10.8%
11.7%
6.4%
8.4%
South Coast
10.8%
8.7%
6.8%
6.8%
6.7%

We have done our own research in this regard in relation to specific localities and property types, both for shorter and longer periods. Naturally these differ again, but attempt to justify the capital growth projections in our report on specific properties. These figures extend to a 27 year period - 1980 - 2007


LOCATING RURAL PROPERTY

We have an internet based system to locate rural property. Contact our office for details.







RURAL PROPERTY INSPECTION CHECKLIST

Whether you engage a professional or research the information yourself, you will need to understand the importance of the various factors that impact on productivity and value of rural property.

The feasibility or profitability calculations are a separate task, but much of the required quantifying data is drawn from the information gathered from the headings listed on the checklist below. These items should form the basis of research enquiries.

Click here to view Rural Property Report Checklist


RURAL PROPERTY FEASIBILITY STUDY INPUTS

We have a series of linked spreadsheets which culminates in a summary page which lists the following:

  • Income for each enterprise for 10 years
  • Escalated prices for land, plant, & stock for 10 years based on historical data for the region
  • Expenditure including capital expenditure summary, interest payments & sinking fund deductions
  • Internal Rate of Return (IRR) incorporating capital growth estimates as per historical records for the specific region

The above is a summary of valuations, enterprise budgets, plant & stock schedules, and overhead expenses.




Back to Top