Backyard Aquaponics
A place to discuss aquaponics

Good news and bad news.

Bad news is that another bank has now said "No, as things stand."

The "as things stand" bit is where the good news is but before I get to that more bad news.

One of the ideas we had to convince a bank to lend us the money was to have other people on the land with us lease the land either from us or with us. Now been told that is an all or nothing deal. If we can get enough leases to cover the interest for the entire loan we can have the loan. If we can't then we can't. Say we were to get 100 acres for $600k we would need to lease the land at $600/ac. Now I can do that for a small lot. For example I've got a micro brewer paying $2000pa for an acre and we would be paying $2000/ac for 5 acres but to get 60k in leaes we would need a lot more people interested in leasing land in small amounts because the people I've interested in leasing large amounts are not prepared to pay anywhere near $600/ac/year.

So that kind of kills that.

Next is that even if we were to buy a much smaller block we most likely (bankers speak for snows flakes chance in hell) not be able to get a loan for the land and the system development. Even if we were to get some extra cash from somewhere to reduce the loan amount that would still not be "likely". So using the equity in my mums place to get the loan for the land and system is not an option.

So the good news.

If we can get access to a piece of land and that access is secured through an appropriately lengthy lease we can use Mum's place as collateral to get the loan to build the system. What is more due to the case I have made about energy savings and water savings most of the money could be borrowed under the Clean Energy Finance Corporation program at an interest rates LESS THAN 4%.

So we just need to find some way of getting a piece of land without using the equity in Mum's place and then we can use the equity in Mum's place to get the loan to build the system at a really low rate of interest.

The mutual exclusive options and contradictory internal logic in all this is doing my head in.

A setback but one that provides a clear goal.

$600k for 100ac?

i posted a property for you at $109,000 for 114ac, it is a bit out of your way, but has a 5000 tree plantation on it already, plus 7.8ml High reliablity water.

I've only got a vague recollection of that now Yavimaya.

For a big project I'm free to travel where ever but for a smaller project I have to stay close to the Ballarat area.

Well I should say want to. The longer things go on the more I'm going to have to compromise. Upto and including working away from home if needs be.

The Burrumbeet property was 318ac for 480k. There is another that is 129ac for about 7k/acre. Very different properties which is why they are valued so differently. Burrumbeet may have had reasonable soils but it had a lot of bluegums, was dry and hot. The 129ac is A+ grade red volcanic soils, high reliable rainfall, with water and reasonable infrastructure.

Its not so much about the price of the land but the return as well.

Is your mother coming in as a partner or are you just using her equity as collateral to get the loans needed?

I posted it to your website as a comment to that ^ article, its awaiting approval, i didnt want to post it in public as if you dont buy it, i dont want anyone else to either!! :smirk:


I havent done any study into the land at all, its right near / on the murray, you will see it anyway if you check the comments.

Ok I haven't seen it then I should have got an email notification

Hey Stu, it must feel like the obstacles are never ending. Just don't give up, you can do it.

Martin.

Well according ANZ analyst Taft Shaamano I'm a full forward.

http://www.fishfarmers.com.au/2015/12/07/agribusiness-needs-full-forwards-to-be-passed-the-capital-ball-plus-good-news-and-bad-news/

Really enjoying your updates Stu. Also great to hear how positive you are. I hope these developments move into place soon.

Martin.

Thanks Martin.

I'm not positive all the time

There really is no alternative though. If you are not positive, if you don't believe you can succeed then you won't give every swing your best shot. Without taking your best shot at every opportunity your chances of getting any where go through the floor.

Turnball innovation strategy is disappointing so far but worse overly optimistic.

http://www.fishfarmers.com.au/2015/12/07/turnball-innovation-strategy-i-hope-there-is-more-to-come/

Stuart,

Is there some land where you can approach the owner with a lease to buy option or vendor finance?

Lease...no there is not.

Plenty of people will offer seasonal or annual leases but not longer terms. That is the principle reasons for the cooperative farm aspect of the project. We haven't been able to find a landlord who will lease us land so we are trying to create one to lease us and other land. The organic root crooper (potatoes, carrots, parsnips, beets, etc.) up the road has the same problem. Needs at least a 5 year lease in order for it to be worth investing in the soil.

There was one person who offered us vendor terms but the terms were prohibitive. If we were to get enough support so that we could gather a sufficient deposit we might be able to take up that offer and then refinance a year or so later. Its definitely something we are considering.