Schells see positive signs for rural property sector

That confidence is set to be boosted by historically low interest rates, with the Reserve Bank of Australia recently cutting the cash rate by 25 basis points - only 2.25 per cent.

Some forecasters are saying there is the chance of another 0.25pc interest rate cut from the RBA later this year.

Ray White Clare Valley and Ardrossan principals Geoff and Daniel Schell say the historically low rates are offering excellent opportunities for primary producers wanting to expand their business, or for younger farmers looking to get a foothold in the market.

"The cost of funds is a real positive incentive," Geoff said.

"For young people coming into the industry and trying to get ahead, there are some really manageable fixed rates available for medium to longer terms, which haven't been there in the past."

He said their family-owned Ray White business had strong ties to all of the major rural lenders in the region.

"We are encouraged by the rural finance sector,'' he said.

"They tell us that properties throughout the Mid North are attractive for investment, because of the diverse and relatively secure agricultural production.

"Every time we list a new rural property we send the listing details to all of the major rural lenders throughout the region."

Geoff said that in recent times there had been very strong interest in leasing properties in the Mid and Lower North region.

"There are great opportunities available through leasing without the capital investment for people looking to expand their business," he said.

"For younger farmers who possibly own a smaller parcel of rural land, leasing is a great way of growing their business. There's always strong enquiry about leasing property."

He said that of the nine rural properties listed for sale through their family business last spring, seven were sold and one leased. The properties listed ranged from extensive pastoral properties to cropping, grazing and mixed farming land.

"There is very strong interest in grazing properties in particular at the moment," Geoff said.

"The sheep meat and lamb markets have been very strong and the beef sector has seen a real resurgence in the past few months. Wool has also maintained solid returns for some time now."

Daniel said grazing properties tended to be snapped up quickly, because not a lot of good grazing properties were coming onto the market.

A recent sale of a grazing property at Hallett in the Mid North and another at North Booborowie attracted widespread enquiries. "The interest wasn't just from SA, but from interstate as well," he said.

One of the most notable sales for the Schell Ray White team last spring was the iconic Collinsville sheep stud and pastoral station, east of Burra.

Soon after the Collinsville stud topped the Adelaide Merino Ram Sale at the Royal Adelaide Show last year at $66,000 - the highest price paid there in 17 years - the deal was completed. George and Sophie Millington, who live at Cappeedee, Hallett, were only the fourth custodians in Collinsville stud's nearly 120-year history.

The family bought the operation from prominent rural identities Paddy and Helen Handbury, who had owned it for the past 19 years.

The deal, negotiated by Ray White Clare Valley, included the 56,093-hectare Collinsville Station, 49 kilometres north east of Burra and the Collinsville stud comprising about 7000 Merino and Poll Merino ewes and lambs.

It has been a big year for the father and son team because in 2014 the Schells moved from their previous sales roles to joint ownership of the Ray White Clare Valley and Ardrossan businesses.

The Yorke Peninsula region has been a major growth area for the business in the past few years.

There is a full-time experienced residential sales person based at the Ardrossan office with plans for expansion in the rural property business.

But the Schells' business is not limited to the Mid North and Yorke Peninsula.

"There's no limit to the distance we'll travel," Daniel said. "We're handling Kalabity Station, an outstanding pastoral property in the North East Pastoral, at Olary near Broken Hill, so there are no issues with distance."

Farm clearing sales are also a major part of the business.

They will conduct a clearing sale at Leighton on February 26 and another at Mount Templeton on April 16.

As recognition of their achievements in the real estate field, Geoff and Daniel have been regular winners at the annual Real Estate Institute of SA awards.

In 2014 Daniel won the REISA rural sales person of the year award for the first time. It is an award that Geoff has taken out three times, in recognition of which he has been inducted into the REISA Hall of Fame.

Last year Daniel also won the REISA Local Residential Salesperson award for the third time.

The Schells have worked as sales partners for the past four years.

This year marks Geoff's ninth year in real estate with Ray White. Together with wife Karen, he has owned and operated a mixed-farming businessnear Burra for more than 25 years. It is Daniel's fifth year in real estate with the Ray White group, having previously worked in the rural finance sector.

Together they bring a range of skills and talents to the partnership and can help clients meet buying or selling needs.

Details: 08 8842 3099 or www.raywhite.com