Town Investments Come Into the Spotlight for Farmers
Excellent seasonal conditions over the last two years have been welcomed by farmers after years of demoralising drought.
Conditions have strengthened farm cash flows and helped offset part of the COVID-19 challenges of supply chains and labour.
It’s also led to significant gains in the value of rural property, with Rural Bank’s report estimating the national median price for land rising 31.3% in Queensland to $6,827 per ha over 2021.
LJ Hooker Commercial Toowoomba’s Chris Stewart has been fielding enquiries from farm owners keen to explore off-farm income.
Most recently, Mr Stewart managed the campaign for landmark Toowoomba property, The Burrow Café. The mixed-use property – there's also a fully-restored cottage on the site - sold for $1.285m to a local farmer.
The 564sqm corner property in Mount Lofty in the schools precinct and is a popular catch-up spot for parents. It's also positioned directly across the road from the TAFE.
The Burrow Café owners have a lease until next year with 2x3 year options, while the adjoining cottage is tenanted until the end of the year.
The transaction represented a 4.5% net passing yield.
“While conditions have be good in the farming sector for the last 12-18 months, farm communities don’t have to think too far back to remember the tough times of the drought,” said Mr Stewart.
“In previous times, farmers might have looked to utilise earnings to buy additional agricultural assets. But with farmland prices on the increase, yields have tightened and are making expansion harder.
“Instead, well-positioned investment assets in town are becoming a better option for some.”