What does ‘try before you buy’ mean in practice?
It is essentially a trial period to test the farm’s potential before you buy it. Meanwhile, rent is paid before the final purchase amount is settled.
Does the process really work?
It is a viable option for prospective landowners. The condition is that a clear contract and purchase option must be in place.
How does Vleissentraal Eiendomme assist with this?
We facilitate transition models through honest market valuations and proper documentation.
How long should such a trial period last?
A meaningful period is at least three years. This provides the prospective buyer with realistic results regarding rainfall, markets, and infrastructure.
What should the contract include?
The purchase option, price formula, maintenance clause, any matters regarding improvements made, and exit clauses.
Is it a good option for young or new farmers?
It can be an excellent way to acquire land, and it builds credibility with financiers while the producer gains practical experience of the farm’s conditions.
Your final advice?
Use the time wisely, ensure all clauses are clearly defined in the contract, and try where possible to settle the purchase price as soon as possible to reduce interest payments.
For more information phone Vleissentraal Eiendomme on 072 118 7509, or visit vleissentraaleiendomme.co.za.
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