![]() Keeping chickens to get free-range eggs, raising bees for honey, or growing your own fruit and vegetables can be satisfying. If it’s lifestyle or hobby, then you’ll be looking at a smaller block of land - perhaps only a few acres.Ĭonsider what farming pursuits will be fulfilling for you. Is your choice to buy a farm based on lifestyle or income generation? What To Look For When Buying A Hobby Farm?įirst, you need to be clear on your objectives. Use other assets (tractor, machinery, but not cars) valued at $100,000 or more.Use land and buildings (“real” property) valued at $500,000 or more or.Make a profit in three of the past five years (including the current year).Produce assessable income of at least $20,000 during the year.Commercial loans can come with higher interest rates and a higher capital input from the purchaser.įor instance, you might be required to raise 30 per cent of the value of the loan (LVR), so a $500,000 property could require you to have $150,000 (30 per cent) injection to a 70 per cent LVR.Ībove: Hobby farms are defined as blocks of land primarily used for residential purposes and generally less than 50 acresįrom a tax perspective, the ATO says a hobby farm becomes a “business” – with associated tax liabilities and concessions – when at least one of the following four criteria has been met: With rural property, the majority of financial institutions consider anything over 50 acres as ‘commercial’. Hobby farms are blocks of land primarily used for residential purposes and are generally less than 50 acres (approximately 20 hectares).įarming may occur on the blocks but is usually conducted on a small scale, more as a recreation activity than for serious commercial gain. The commitment required to look after a lifestyle block or hobby farm with some chickens, a goat and a few horses is very different from a farmlet or small farm that you hope will provide a primary or secondary income stream.Ībove: Hobby farms for sale Australia - you need to be clear on your objectives before looking at properties to buy There are many options to consider during the planning stages of buying a hobby farm for sale. If you’re looking to escape the crowded cities and take advantage of the remote working opportunities brought about by the COVID-19 pandemic, buying a hobby farm for sale may be just right for you.Īccording to the Victorian Department of Primary Industries, there are more than 60,000 ‘small lifestyle farms’ operating across Australia, occupying around 20 per cent of agricultural land, and this percentage is only growing. How To Find The Best Hobby Farms For Sale Australia
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