Buying land is not just a question of hard cash

Land is an emotive subject in Ireland but that should not be allowed to block a debate about its economic value.

In the last couple of weeks, a Farmers Journal survey indicated that the average price of an acre of land was stable in Ireland at around €10,000. This figure is below the high levels reached during the boom years up to 2008, but is still a number worth reflecting upon.

When assessing any asset from a financial perspective it is always important to consider the return available from that investment and compare this with other options. If we assume a bank of land comprised of 100 acres for the purpose of this article it makes the analysis easier to comprehend.