WHILE property auctions have produced great results in the Mid North, local real estate agents believe it is important to consider the most suitable marketing strategy for each land parcel.
This may be sale by expressions of interest or private treaty, which when integrated with a well-planned marketing campaign can also produce outstanding results, according to Ray White Clare Valley principal Geoff Schell.
Mr Schell has observed a change in selling trends in the past year.
“In the five or six years prior, there had been a fair bit of rural property come on the market,” he said.
“Many of the properties coming on the market were from those exiting agriculture because they didn’t have the next generation coming home to the farm, or those who didn’t think they were large enough and didn’t see a chance to expand.
“Those kinds of sales have slowed considerably. There’s a greater confidence in the rural sector and people are retaining property.”
Not only have the spring sales gone exceptionally well, but interest in leasing land is on the rise.
Mr Schell said leasing land was a particularly attractive option because it offered a better return than term deposits and did not have the volatility of investing in the stock market.
“Not only does leasing land offer returns more than comparable to other investments, it also offers the opportunity for capital growth,” he said.
“The demand from people wanting to lease is still strong, particularly from people wanting to expand their enterprise, or from people wanting to get into agriculture without a large capital investment.”
Added to the interest in leasing and buying land were the interest rates being offered by rural lenders.
“The cost of finance is the most attractive I’ve ever known it to be in my business life,” Mr Schell said.
“There are some really good tailored finance packages available at the moment.”
Ray White Clare Valley not only covers the Mid North, but also the Lower North, Yorke Peninsula, Upper North and pastoral areas.
The company recently added a staff member at Ceduna, so it has the capability to service the Eyre Peninsula.
“There’s been a real increase in inquiries for true mixed farming country and in straight grazing country as well,’ Mr Schell said.
“We’ve also seen growing interest in investment in pastoral areas.”
With a family background in primary production, rural properties are a major focus for Mr Schell and his business partner and son Daniel.
“We are really confident about the agricultural sector and we believe it’s a very sound long-term investment,” Mr Schell said.
