There's no staying out of farm's way for some: [1 Edition]
Stapleton, John. The Australian; Canberra, A.C.T. [Canberra, A.C.T] 31 May 2002: 24.
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Abstract
CASH rich and time poor? There are enough such people out there looking for everything from a lifestyle hobby farm to a serious rural investment to justify the formation of a new service -- Farm Finder.
Farm Finder arose out of [Andrews]' 15-year career in agri- business, predominantly with farm and rural business finance. He worked for the Primary Industry Bank of Australia, later to be called Piba/Rabo.
Farm Finder's service involves sitting down with the prospective purchaser, finding out what they are looking for, matching the buyer with the property, organising the financial side of things and, where a manager is required, linking the city investor with theappropriate people.
* Rural
CASH rich and time poor? There are enough such people out there looking for everything from a lifestyle hobby farm to a serious rural investment to justify the formation of a new service -- Farm Finder.
The service, believed to be the first of its kind in Australia, links people with the farm of their dreams -- but unlike normal real estate agents Farm Finder is specifically a service for the purchaser.
It was started in Sydney by rural finance executive Grant Andrews, who says that with an increasing trend of city investors wanting to buy rural property he saw a hole in the market.
"You are looking at everything from your lifestyle purchase right through to commercial farming," he says.
"The trend is partly driven by people retiring with plenty of superannuation, as well as people who are still active in the workplace but who are looking for both an investment, a lifestyle, and in a sense an escape clause.
"The boom in the Sydney property market has also created equity, and led people to look at other forms of investment.
"The biggest increase is in lifestyle seekers looking for hobby farms and weekenders.
"There's a lot of people who just want to get out of town. They want to shut the gate and tell the whole world to go away."
But a revival in rural fortunes over the past few years, including better cattle, wool and sheep meat prices, is also driving serious investors.
The typical non-lifestyle seeker whom Farm Finder deals with is looking at an average purchase of around $1.5 million. A fee of up to 2 per cent is charged, depending on the services provided.
Farm Finder arose out of Andrews' 15-year career in agri- business, predominantly with farm and rural business finance. He worked for the Primary Industry Bank of Australia, later to be called Piba/Rabo.
"Over the years a number of investors approached me informally to discuss buying a rural holding," he says. "Thus Farm Finder was born."
The service also focuses on "investor types" who are finding, unlike a decade ago, that well managed properties for well educated investors are producing satisfactory returns.
"We are taking city capital from the city investor and combining that with management experience and operational skill of existing farm operators," Mr Andrews says. "The clients are putting up their hands to say they want to invest, but they want assistance to make an informed investment.
"A problem in the past for the larger, serious rural market investors has been that once they have purchased or made an investment, how do they employ effective management to give them a satisfactory return?
"We don't manage the properties, but part of the Farm Finder process is matching farm managers with the property."
Mr Andrews says sunrise industries like olives, alpacas and native flowers are particularly popular.
Farm Finder's service involves sitting down with the prospective purchaser, finding out what they are looking for, matching the buyer with the property, organising the financial side of things and, where a manager is required, linking the city investor with theappropriate people.
The process can also involve hitting people with a little dose of reality. Mr Andrews says that while many people hanker after their own slice of rural paradise, a large number of them have absolutely no idea of what is involved in running even a small or part-time agricultural enterprise.
"They don't know anything about weeds, vermin, rights and obligations," he says. "Many people who have worked in large corporations and don't actually have experience running their own businesses need initial assistance like being shown how to run their books. They have a romantic glimmer in their eye as they gaze towards the horizon, but some definitely need practical help."
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