Rural Property Buyers Agent Services and Process
The Purchasing of Rural Property can be very complicated, there are so many variables and influences on the profitability of every property. You can do everything right, then have a bad season or a fall in commodity price, and it can be all for nought.
But there is something about owning your own farm that is just hard to beat. Primary production is almost a primal urge, a need we have as humans to feed ourselves and in today’s markets and climate, the game is not getting any easier or cheaper.
So if you want to get into the farming game, you need to do it once and you need to do it right.
There is growing demand for people to invest in direct agriculture, to be part of the production chain, to see your produce sold to the highest bidder, to gain that satisfaction of providing an essential commodity, watching the seasons and the circle of life, its grounding, its real, its honest.
Australia is a big place and there is a vast array of options when it comes to deciding what you want to grow and then finding the best soils and climates to do it, and that’s the easy part.
The Hard part is finding the needle in the haystack of properties, with the right soils, pastures, infrastructure, orientation, topography, natural shelter or reliable water in the right quantity.
Aspect Buyers Agency have created a team of some of Australia’s leading agricultural consultants to help in the hunt for your ideal rural property.
First and foremost, it’s about gaining an understanding of your goals and creating the brief of the location, agrisector or the unique characteristics your property needs to have to be profitable and to also meet some of your lifestyle and practical management goals.
Before we get started a direct and frank conversation about the likely success of finding your dream property based on budget and other criteria needs to be had so we are all on the same page going forward, the time frames involved, the expectations of risk and reward to bring clients up to speed on industry benefits and pitfalls, and why things may not always be what they seem.
The Journey Begins
Once we have the criteria nutted out, we then start the search, we search Australia wide, but the practicality of getting to some of the more remote areas needs to be considered and will vary depending on what commodity and lifestyle elements are being targeted.
Suitable properties are vetted, analysed and put forward as potential options, at this point, rough numbers are run on short listed properties to give our clients a gauge on what potential the property may have in meeting their investment goals.
Negotiation and sales terms – Rural properties can be sold in many ways, taking into account existing livestock and crops, plant and equipment and delayed settlements which can sometimes be months. Our extensive negotiating skills and unique understanding of many of the critical elements of buying rural properties help us determine on your behalf, what a good deal actually is. A delayed settlement at the wrong time of year may mean missing calving, harvest, sowing or pruning, which could have significant impacts on your critical first year cash flow.
Agronomist reports are undertaken as part of the Due Diligence to give the clients a full picture of the quality of the property they are buying. Soils ain’t Soils and not all irrigation schemes are created equal, understanding how a properties soils or pastures have been treated and maintained is critical as it can be a huge hidden cost that you may not be able to see, and these items are critical to keep the property profitable. Part of this process is also building Business models to determine cash flow, profitably and capital expenses and various management styles and outcomes.
We draw on the extensive experience of dedicated agricultural specialist, Accountants, Lawyers, Finance and Water Brokers, livestock Buyers, Grain Traders, Town Planners and our in-house Property Valuers to name a few.
During this process thought is given to where the produce will be sold, and what markets are to be targeted and where will the property have the best chance of being profitable and sustainable.
Sealing the Deal and Getting Up and Running
Once we have completed the required Due Diligence, we then complete the sale, renegotiate if required, and start getting things ready for your take over. Depending on what the property requires we help orchestrate a range of services which include but are limited to the following;
- Planning approvals
- Clearing and vegetation approvals
- Water infrastructure design and construction
- Employment of Management and other Staff
- Purchase of livestock either as part of the sale or separately
- Development or redesign of rural infrastructure as required.
- Acquisition of plant and equipment either as part of the sale or after
- Crop assessment, valuation and maintenance as required either as part of the sale or after
- Registration of the new owners with various government department to make you are legally allowed to grow certain crops or acquire and sell livestock
- Property Livestock registration, brand and ear mark allocations and other primary production certifications.
- Sourcing recommending potential contractors, arranging quotes and liaising as required.
- Location and capacity of existing services
- Paddock design and suitability of infrastructure location
Now the Party Has Started – What Next?
Ongoing Aspect Buyers Agency offer an Asset Management Service, where we keep an eye on things to make sure the property is performing as expected and achieving the investment goals. The success of any business including running a rural property will hinge on successful management first and foremost, in addition to working with seasonal and commodity price fluctuations. We offer monthly reporting on all key aspects and progress reports on any of the development projects that are being undertaken.
The aim of this is to allow you to be involved as much as you want to and when you can, not having have the farm as an inconvenient distraction, if the job that pays the bills requires your undivided attention, at critical times in the agricultural cycle.
Critical Mass – The Key to Success and Syndication
Like a lot of industries growing a business to the scale required for it to run under management takes capital and cash flow. If your budgets are limited or not quite enough to get you into the next level where scale will help you ride the seasonal waves, we offer a Syndication service – the aim is to combine like minded people with the ability to join together in a trust formation to maximize investment returns by acquiring better quality properties with scale and diversification.