Adding value to a LSB

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11 years 8 months ago #32628 by Aria
Adding value to a LSB was created by Aria
Hi everyone - we'd appreciate your help in deciding what our next project will be! [8D][8D][8D]

We want to gauge which of the following improvements to our lifestyleblock would be considered by you to be the most valuable if you were a potential purchaser. For the purpose of the exercise, assume that each improvement is going to cost the same amount of dollars (say $15K) and we can only afford to do one!

So the question is - if you were purchasing - which of these would you see as the most beneficial type of infrastructure investment? The property was initially established for horses (has an arena, barn and corral).

Here are the choices and some background on the property:

1. Completing a farm track

The property is 90 acres bisected by a good flowing (and very picturesque!) creek at the bottom of a steep, bush covered gully. A pine forest (roughly 60 acres) is on the other side of the creek from the farm house and paddocks. A good quality (quad bike sized) track to the creek bed exists on the house side, but does not go up the other side to the forest. The forest presently can only be accessed by an alternate route (down the drive, along a public road - about a kilometre around).

2. Grid tie microhydro power supply

With a likely small return for excess generation given the 24/7 nature of the creek flow.

3. Additional paddock fencing and yards

Property presently has 3 fully fenced grazing paddocks (roughly 3 acres each) plus a race - a barn, but no stock yards. Additional fencing would give a further 5 acres of grazing (presently fenced on three sides only) + yards at the bottom of the drive.

4. Landscaping, orchard and fencing off the house paddock

No fencing or landscaping around the house presently. Therefore, no contained yard for a dog and no garden shrubs/trees and flower beds (as the goats free range - so would need a fence to keep them out in order to properly establish). A large orchard would be incorporated into this plan.

Your comments most appreciated!!!

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11 years 8 months ago #435276 by igor
Replied by igor on topic Adding value to a LSB
3. for me.
My wife would more than likely pick 4.
A quad sized road is useless to me, and I'm sure to many other people, as on a property of this size I would consider a tractor to be almost essential.

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11 years 8 months ago #435278 by Aria
Replied by Aria on topic Adding value to a LSB

igor;434022 wrote: 3. for me.
My wife would more than likely pick 4.
A quad sized road is useless to me, and I'm sure to many other people, as on a property of this size I would consider a tractor to be almost essential.


Interesting, thanks for the feedback! Funny, we had RE agents (husband and wife team) up to consider same - and the lady side of the pair was adamant about the import of the house/garden as well [8D][8D][8D].

Yes, a tractor/truck will always need to go the long way round as through the gully is just too steep. Horses and/or quads only.

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11 years 8 months ago #435279 by muri
Replied by muri on topic Adding value to a LSB
I am with igor
On the other hand, not seeing the house and knowing how much it is in need of softening from landscaping or protection from wind etc it makes it hard to prioritise.
But people buying that size block would be wanting to graze it and you have a small propertion of grazing as a ratio of the overall block size

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11 years 8 months ago #435281 by Organix
Replied by Organix on topic Adding value to a LSB
FWIW I consider #3 to be the most important due to you present lack of yards. How do you currently load/unload stock and perform drenching, tagging, etc.?

Depending on your personal circumstances #2 or #4 comes next.

#4 The ability to exclude stock from your food garden and orchard will allow you to become at least partly self sufficient in regard to food, and is a great image to promote the property for resale.

#2 If researched, designed and constructed well this presents a quantifiable income (in $s & cents) for yourselves or a potential buyer which will also increase in income over time, minus maintenance. Have you considered grid tied PV as $15K should buy 2-3kW with less maintenance requirements than a hydro system?

Regarding #1, how often do you access the (pine?) forest and (assuming woodlot forest) how close to harvest is it? This seems to be more a 'want' than a 'need' than the other choices.

Harm Less Solutions.co.nz
NZ & AU distributor of Eco Wood Treatment stains and Bambu Dru bamboo fabrics and clothing

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11 years 8 months ago #435283 by stephclark
Replied by stephclark on topic Adding value to a LSB
i agree too.. that size property is potentially not going to attract the gardening and sit on the deck type of small holder...
additional paddock fences and yards..
as it is set up for horses already, it will appeal to that set, but with extra fencing and yards, then the 'stock' raising types can use as well...

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11 years 8 months ago #435285 by drifter
Replied by drifter on topic Adding value to a LSB
If I were purchasing I'd rather you knocked $15k off the price so I could improve it to suit my needs[;)] rather than have you try to guess them.

However, I'd prioritize the fencing and yards. Next the house/orchard/garden. The other two would depend. How bad is the track? A horse can go where a quad can't and I would perhaps be interested in being able to ride without going onto the road. My other half would love the power generation.
Neither would be on our list of needs when looking to purchase but would be nice to have.

Strange how much you've got to know, Before you know how little you know.

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11 years 8 months ago #435286 by Andrea1
Replied by Andrea1 on topic Adding value to a LSB
I agree pretty much with all the above, paddocks and yards. If they weren't on a property we purchased, it would probably be one of the first things we did.

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11 years 8 months ago #435288 by Aria
Replied by Aria on topic Adding value to a LSB
Wow - thanks again to you all! Really, really helpful comment. Previous owner used to graze cattle in the forest block - but the trees were much smaller then - hence more pasture there at that time. They are 15 years old now - earliest to profitably harvest is another five years.

Presently we lease the grazing paddocks to neighbours who graze beefies - and one has yards at her place (she sends her stock to the works). The other has used our barn for tagging/testing as it has a sort of gate/pen. He doesn't transport stock off the property (aside from walking them down to his place for grazing) - he homekills what he rears for his own consumption only.

Yes, we have considered PV and likely cheaper now than hydro. Did the rough costings over two years ago now. Solar is a definite homegen alternate for us.

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11 years 8 months ago #435294 by Aria
Replied by Aria on topic Adding value to a LSB

drifter;434031 wrote: If I were purchasing I'd rather you knocked $15k off the price so I could improve it to suit my needs[;)] rather than have you try to guess them.

However, I'd prioritize the fencing and yards. Next the house/orchard/garden. The other two would depend. How bad is the track? A horse can go where a quad can't and I would perhaps be interested in being able to ride without going onto the road. My other half would love the power generation.
Neither would be on our list of needs when looking to purchase but would be nice to have.


LOL .. that's very interesting!!! I have suggested same to my husband (people like to do their own thing!). We're likely here for another 12 months and as he's virtually finished the house renovation - he can't help now getting on with the outside :D .

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11 years 8 months ago #435295 by kate
Replied by kate on topic Adding value to a LSB
Fencing and yards would be my pick too. We've got most of our fencing and yards in. We have our off-grid pv system. As soon as we can afford it we will put in an all-weather track to the other side of the gully. Like you, we have to get to the other side by via the road as the track is too slippery to use when it's wet. Finally, when everything else is done we'll landscape around the house and put a deck on it :D

Cheers
Kate

Web Goddess

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11 years 8 months ago #435299 by wiredkiwi
Replied by wiredkiwi on topic Adding value to a LSB
Are you planning on selling in the next 3-5 years or so? If you are, I'd either do nothing and put the 15k into something else or maybe, possibly, do #4 - you *might* get your $15k back on the sale (actually you'd need to get $15k plus agent %), but it would be iffy. Talk to a valuer not a real estate agent. The valuer would tell you what things you could do that would convince him to add $20k to the property's valuation.

If you aren't planning on selling, why are you thinking of doing any of these to please some unknown 'future person'????

Just do what makes you happiest with your 15k (which may or may not be one of the ideas for improvements to your LSB)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Horses must be magnetic. Have one and others come along to join it.

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11 years 8 months ago #435300 by kai
Replied by kai on topic Adding value to a LSB
I would say no 4 is most likely to give the best return, but don't spend the entire 15k on it probably less than half would do, if you are willing to wait for the plants to mature a few years before selling. It will also give a return immediately if you are reduce the amount of fruit and veg that you need to buy. If it was me, it would give a great return on the enjoyment of the property.

The other ideas would possibly make the property easier to sell, but not likely to increase end sale price.

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11 years 8 months ago #435301 by Aria
Replied by Aria on topic Adding value to a LSB

wiredkiwi;434046 wrote: Are you planning on selling in the next 3-5 years or so? If you are, I'd either do nothing and put the 15k into something else or maybe, possibly, do #4 - you *might* get your $15k back on the sale (actually you'd need to get $15k plus agent %), but it would be iffy. Talk to a valuer not a real estate agent. The valuer would tell you what things you could do that would convince him to add $20k to the property's valuation.

If you aren't planning on selling, why are you thinking of doing any of these to please some unknown 'future person'????

Just do what makes you happiest with your 15k (which may or may not be one of the ideas for improvements to your LSB)


Yes, we will be selling. I finish a degree at Massey next year - so when I go back to full time work we will likely head closer to a beach as we're mad keen boaties/fishers - previously lived in Wellington, Kapiti and Tauranga. The Uni brought us here as I also teach part time while studying.

OH is what I describe as a 'serial renovator' - always has to have a project, if not two, on the go. Over the 30+ years he's been doing this, he's always got it right with residential properties but this is our first LSB.

We are very aware of the present market being difficult so are being very cautious - wanting to target the spend and not overcapitalise.

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11 years 8 months ago #435321 by wiredkiwi
Replied by wiredkiwi on topic Adding value to a LSB

Aria;434048 wrote: Yes, we will be selling. I finish a degree at Massey next year - so when I go back to full time work we will likely head closer to a beach as we're mad keen boaties/fishers - previously lived in Wellington, Kapiti and Tauranga. The Uni brought us here as I also teach part time while studying.

OH is what I describe as a 'serial renovator' - always has to have a project, if not two, on the go. Over the 30+ years he's been doing this, he's always got it right with residential properties but this is our first LSB.

We are very aware of the present market being difficult so are being very cautious - wanting to target the spend and not overcapitalise.

Then I would definitely invest (carefully) in an *experienced* valuer's opinion. People look at lots of different things when they buy LSB's. Depends if they are coming from town or another LSB as to what they look at though! If you look at the 'perfect LSB' thread you'll see the things that most people love about their block.

Where can I find a serial renovator please? Sounds very useful!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Horses must be magnetic. Have one and others come along to join it.

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