Buying the Family Farm

Hi Scott,

I grew up on a farm and have always wanted my own.My wife and I are in our late 40s. I work full time six days a week earning $145,000 per annum, and my wife works from home and earns little income. We are empty nesters with our adult kids having left home. We own our home and an investment property outright. We have $250,000 in savings and zero debts.The farm (weekender) I would like to purchase is 100-plus acres with no house costing somewhere between $600,000 and $800,000. A little voice in my head says, “Buy the farm. It’s what you have always wanted”, while another voice says, “It’s a lot of debt to get into -- plus further outlay such as tractors and fences.” What say you?

Doug

G’day Doug,

You’re obviously a little weird. It’s not normal to have paid off two homes and have $250k cash and still be in your 40s! Yet what good is having money if you can’t enjoy yourself?

I’d suggest you do three things:

First, buy a calendar.

Second, talk to a stock and station agent about leasing 100 or so acres. They’ll be able to find you a cocky who’ll bend over backwards to carve off a few paddocks for a year or two, especially if you don’t need a house on the block. It’ll cost you $5,000 a year tops.

Third, each time you return from a day at the farm put an ‘X’ on the calendar. At the end of 12 months, sit down with your wife and count up all the X’s.

You might find that working six days a week stops you from spending much time on the farm. You might find that your wife doesn’t share your passion for it. You might decide to continue leasing it as a (relatively) cheap hobby. Or you might find that you both love it and decide to buy your dream weekender.

Scott