{"id":1919,"date":"2020-10-25T06:14:07","date_gmt":"2020-10-25T06:14:07","guid":{"rendered":"https:\/\/propertyandlivestock.com.au\/?p=1919"},"modified":"2020-10-25T06:14:14","modified_gmt":"2020-10-25T06:14:14","slug":"due-diligence-in-a-livestock-grazing-property-purchase","status":"publish","type":"post","link":"https:\/\/propertyandlivestock.com.au\/zh\/due-diligence-in-a-livestock-grazing-property-purchase\/","title":{"rendered":"Due Diligence in a Livestock Grazing Property Purchase"},"content":{"rendered":"<p>If a premium is paid for a property based on non-existent or overstated development potential, is it generally a case of \u2018buyer beware\u2019 or a lack of due diligence? (Note: Caveat emptor is Latin for &#8220;Let the buyer beware&#8221;.<br><br>I am referring primarily to the intrinsic economic value of a property, as opposed to the value placed on it by the market, after all you are running a business, just like any other business. The intrinsic economic value of an asset is essentially its value based on its future earning capacity, which means that land condition has a big effect upon that value.<br><br>In the past, there have been grazing property sales where the disproportionately high sale values could only be attributed to ambitious current productivity estimates and significantly overestimated carrying capacities. We urge all prospective buyers to undertake appropriate due diligence.<br><br>It comes down to an over-estimation of what these properties can sustainably carry over the long-term given their current development and current land condition. Either the purchaser has overestimated, or the vendor has overstated, the current carrying capacity.<br><br>Once the current carrying capacity is accurately assessed (ie total AEs (Adult Equivalent) at current development), a property owner can determine the sustainable size of the breeder herd and if a realistic breeder herd benchmark number can be set, then the real production targets (branding percentages and growth\/turn-off rates) can be pursued.<\/p>","protected":false},"excerpt":{"rendered":"<p>If a premium is paid for a property based on non-existent or overstated development potential, is it generally a case of \u2018buyer beware\u2019 or a lack of due diligence? (Note: Caveat emptor is Latin for &#8220;Let the buyer beware&#8221;. I am referring primarily to the intrinsic economic value of a property, as opposed to the&hellip;<\/p>","protected":false},"author":1,"featured_media":1414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","two_page_speed":[],"footnotes":""},"categories":[69],"tags":[],"class_list":["post-1919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Due Diligence in a Livestock Grazing Property Purchase - David Carter Property and Livestock<\/title>\n<meta name=\"description\" content=\"If a premium is paid for a property based on non-existent or overstated development potential, is it generally a case of \u2018buyer beware\u2019 or a lack of due diligence?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/propertyandlivestock.com.au\/zh\/due-diligence-in-a-livestock-grazing-property-purchase\/\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Due Diligence in a Livestock Grazing Property Purchase - 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This means that you, as a purchaser, need to undertake due diligence of a property before you buy as vendor warranties are generally of a limited nature. The\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":957,"url":"https:\/\/propertyandlivestock.com.au\/zh\/do-wind-turbines-or-solar-panel-arrays-add-or-subtract-from-property-value\/","url_meta":{"origin":1919,"position":1},"title":"Do Wind Turbines or Solar Panel Arrays Add or Subtract from Property Value?","author":"David Carter Property and Livestock","date":"9 8 \u6708, 2018","format":false,"excerpt":"Weekly property review: Do wind turbines or solar panel arrays add or subtract from property value? Solar panel arrays, wind turbines and telecommunications towers are popping up on farms and grazing properties from northern Queensland through to Tasmania, providing producers with a steady, passive income stream, particularly valuable now as\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":883,"url":"https:\/\/propertyandlivestock.com.au\/zh\/what-is-fair-market-value-for-rural-land-sales-in-australia\/","url_meta":{"origin":1919,"position":2},"title":"What Is Fair Market Value for Rural Land Sales In Australia?","author":"David Carter Property and Livestock","date":"15 11 \u6708, 2018","format":false,"excerpt":"Fair market property value is a rational and unbiased estimate of the potential market price of an rural land asset. The market value of a property is the price that would be negotiated between a willing buyer and willing seller in an arm\u2019s length transaction after proper marketing wherein the\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":885,"url":"https:\/\/propertyandlivestock.com.au\/zh\/rural-property-market-remains-strong-for-3rd-quarter-2018\/","url_meta":{"origin":1919,"position":3},"title":"Rural Property Market Remains Strong For 3rd Quarter 2018","author":"David Carter Property and Livestock","date":"5 11 \u6708, 2018","format":false,"excerpt":"New South Wales Tablelands and Central WestDemand for rural properties remains reasonably strong at present. On the supply side, the number of listings and properties being offered to the market appears to have eased throughout 2018 to this point, due in part to the extended dry seasonal conditions. As a\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":871,"url":"https:\/\/propertyandlivestock.com.au\/zh\/contact-us-about-off-market-property-opportunities\/","url_meta":{"origin":1919,"position":4},"title":"Contact Us About Off Market Property Opportunities","author":"David Carter Property and Livestock","date":"30 11 \u6708, 2018","format":false,"excerpt":"At Professionals Crown Property & Livestock we have a number of clients open to the prospect of selling their properties off market and do not wish to publicly list their property for sale. In our endeavour to provide market leading service we work exclusively with our clients and buyers to\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":847,"url":"https:\/\/propertyandlivestock.com.au\/zh\/first-home-loan-deposit-scheme-announced\/","url_meta":{"origin":1919,"position":5},"title":"First Home Loan Deposit Scheme Announced","author":"David Carter Property and Livestock","date":"24 9 \u6708, 2019","format":false,"excerpt":"The federal government\u2019s First Home Loan Deposit Scheme will guarantee mortgages for first home buyers who have only saved a 5% deposit, effectively helping them buy sooner without paying lenders mortgage insurance premiums. Great news if you are first home buyers saving for a home.The First Home Loan Deposit Scheme\u2026","rel":"","context":"\u7c7b\u4f3c\u6587\u7ae0","block_context":{"text":"\u7c7b\u4f3c\u6587\u7ae0","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/posts\/1919"}],"collection":[{"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/comments?post=1919"}],"version-history":[{"count":0,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/posts\/1919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/media\/1414"}],"wp:attachment":[{"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/media?parent=1919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/categories?post=1919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyandlivestock.com.au\/zh\/wp-json\/wp\/v2\/tags?post=1919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}