Re: Growing the Business

From: Victorian Farmers Accountants (FARMERSTAXWIZZ@bigpond.com.au)
Date: Fri Jul 14 2006 - 13:31:38 EST


This is a multi-part message in MIME format.

--Boundary_(ID_tX4qQ+iZ9EuDB6AnMZFgEQ)
Content-type: text/plain; charset="iso-8859-1"
Content-transfer-encoding: quoted-printable

Land prices are certainly a restriction to growth. Investment in =
property at this point cannot be justified by the return. Leasing may be =
a better option for growing the actual business. This has some =
disadvantages too. However in the long run land will always go up, but =
when and how much who knows. But the cash return would be so low if you =
bought right now you might go broke waiting to get rich from land =
appreciation. I don't think there's any rules - any proposal may stack. =
It is probably a good period to consolidate your financial situation, =
ie, set yourself up to take advantage of great opportunities that may =
come along. Bargains (if that's what you want) will only come when no =
body wants something and you can still see its' value. Lots of people =
see land as the answer right now so there are no bargains to be had. =
Note there are many forms of investment. And yes, interest rates are =
tipped to increase about another .75% over the next 12 months. Nothings =
certain.

Regards,
Matt Stewart CPA
Victorian Farmers Accountants=20
Pakenham 03 59417514
  ----- Original Message -----=20
  From: Tanya Robbins=20
  To: Vicdairy-L=20
  Sent: Friday, July 14, 2006 12:58 PM
  Subject: Growing the Business

  With the rise in the value of dairy land in most areas recently I =
should imagine many farming people find themselves with quite a bit more =
equity than they had . In my area some of the smaller farms nearby have =
been listed for sale with vendors who have high expectations ! In fact =
, a block next door may come up next door to me and this begs the =
question- do you go ahead and buy and expand the business or do =
something else , or do nothing ?

  My figures and instinct tell me the timing is not right and I should =
wait for the next downturn and some rising interest rates before buying =
. I suppose it depends ....

  Any comment ?

  Shawn=

--Boundary_(ID_tX4qQ+iZ9EuDB6AnMZFgEQ)
Content-type: text/html; charset="iso-8859-1"
Content-transfer-encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2900.2912" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Land prices are&nbsp;certainly a =
restriction to=20
growth. Investment in&nbsp;property at this point cannot be justified by =
the=20
return. Leasing may be a better option for growing the actual business. =
This has=20
some disadvantages too.&nbsp;However in the long run land will always go =
up, but=20
when and how much who knows.&nbsp;But the cash&nbsp;return&nbsp;would =
be&nbsp;so=20
low if you bought right now you might go broke waiting to get rich from =
land=20
appreciation. I don't think there's any rules -&nbsp;any proposal may =
stack. It=20
is probably a good period to consolidate your financial situation, ie, =
set=20
yourself up to take advantage of great opportunities that may come =
along.=20
Bargains (if that's what you want) will only come when no body wants =
something=20
and you can still see its' value. Lots of people see land as the answer =
right=20
now so there are no bargains to be had. Note there are many forms of =
investment.=20
And yes, interest rates are tipped to increase about another .75% over =
the next=20
12 months. Nothings certain.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Regards,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Matt Stewart CPA</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Victorian Farmers Accountants =
</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Pakenham 03 59417514</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=3Dtrobbins@westvic.com.au =
href=3D"mailto:trobbins@westvic.com.au">Tanya=20
  Robbins</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dvicdairy-l@unimelb.edu.au=20
  href=3D"mailto:vicdairy-l@unimelb.edu.au">Vicdairy-L</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, July 14, 2006 =
12:58=20
PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Growing the =
Business</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial size=3D2>With the rise in the value of dairy =
land in most=20
  areas recently I should imagine many farming people find themselves =
with quite=20
  a bit more equity than they had . In my area some of the smaller farms =
nearby=20
  have been listed for sale with vendors who have high expectations =
!&nbsp; In=20
  fact , a block next door may come up next&nbsp; door to me and this =
begs the=20
  question- do you go ahead and buy and expand the business or do =
something else=20
  , or do nothing ?</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>My figures and instinct tell me the =
timing is not=20
  right and I should wait for the next downturn and some rising interest =
rates=20
  before buying . I suppose it depends ....</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Any comment ?</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial =
size=3D2>Shawn</FONT></DIV></BLOCKQUOTE></BODY></HTML>

--Boundary_(ID_tX4qQ+iZ9EuDB6AnMZFgEQ)--



This archive was generated by hypermail 2b29 : Tue Oct 24 2006 - 02:38:12 EST