WESTERN Australian farmland is an attractive asset to investors.
Ray White Rural WA (RWRWA) has been instructed by several private, local investors to source farmland for them to purchase.
And with rural land values at historic highs in most regions across the State, RWRWA director Rob Chittick said this was the ideal opportunity for property owners to "cash in".
"This is an opportunity for farmers to take advantage of strong property prices by selling and if they want to, they can continue farming by leasing back the property from the investor in a long-term lease," Mr Chittick said.
Investors are after large scale properties valued in the $10-$50 million range in higher rainfall country of 375 millimetres a year or more.
"Those farmers who wish to lease back the farm can do so with a secure long-term lease of about 10 years, which still enables them to plan ahead with excellent lease terms," he said.
"Alternatively, the property doesn't have to be leased back to the vendor, as we would be able to find tenants with lease demand being very strong."
Mr Chittick said that over the past year or so, the profile of rural property has increased and it has become a more attractive asset class to investors who previously might have turned to more 'traditional' real estate asset classes, such as commercial or residential.
Therefore, with growing demand from high value investors, coupled with already strong land values, for those land owners considering scaling down in selling but still wanting to farm, or exiting farming altogether, arguably there has never been a better time to do so.
- For a confidential discussion without obligation, contact Ray White Rural WA directors Rob Chittick at robert.chittick @raywhite.com or on 0429 920 267, or Steve Vaughan at steve.vaughan@ raywhite.com or on 0428 120 407.