Q & A

Lifestyle blocks usually return a lower investment yield than city properties.  Rents are cheaper because of their locations on city outskirts, and capital gains are generally slower to appreciate on the properties.  Some owners make higher yields by renting their properties out as peak-period holiday rentals, but the New Zealand holiday season is typically only 6-8 weeks.  Most buyers buy their rural property just to enjoy, knowing that they can accrue capital gains over time, and sell if needed.

Once you’ve decided on the type of farm you want to purchase, you’ll need to decide where that farm should be located. Some things to consider when buying are:

• Your farm location will be partially determined by the type of farm you are buying. In Northland, beef farms are common. The Waikato and Taranaki regions mainly contain dairy farms. Sheep farms exist across New Zealand.
   
• Land prices (and council rates) should be key factors considered.  Prices and rates will differ from region to region, so research prior to purchase is advised.

 

• Established farming areas (like the Waikato and Canterbury Plains) will likely have better access to farming support services such as veterinarians, livestock transport, fertilizer, financial advice, and bio-security and pest management.  Newer farming areas may have fewer amenities available.

 

• Consider the location of your farm relative to markets or abattoirs.  If you need to transport livestock or produce to markets, the distances to these locations from your lifestyle farm will affect the resulting transport costs.

 

• If you decide to purchase a dairy farm, you'll need to consider how you sell the milk that is produced.  You may decide to sell at the farm gate, to a small local dairy firm, or to a large dairy co-operative like Fonterra.  There are advantages and disadvantages of each option, so you may wish to get advice from a financial planner, or other established dairy farmers.

 

• Your health and age may dictate your ability to work, and / or the level of city or town amenities you need access to.  With a lifestyle farm, you're living on the farm itself.  Make sure that the location of the farm is not just good for farming, but is also going to meet your personal location needs.

Finding work in the countryside doesn’t need to be difficult. If you’re fortunate enough to have specialist knowledge or skills that are portable, you may be able to start work straight away.  This assumes that the area you are moving to has the necessary infrastructure and demand for your type of work.
Some people take the opportunity to start a whole new career when they move to the countryside.  For example, you may have been an IT manager in the city, but you might decide to be an office manager at a fruit distribution centre in the countryside.
If you choose (or are forced through lack of skillset demand) to find a completely new job role, you should start by reassessing what you have to offer.

• Dust off your CV and update it, taking everything you’ve ever done into account. This is helpful for finding a job, and it’s also a good way to assess your own skills and see how they might be deployed in a different way.
   
• Get in touch with local business associations, employment agencies or the council and see if they have any work placement services or advice.
   
• Find out what particular skills are in high demand in your new location by talking to employment agencies or management consultants.
   
• Be prepared to take work in the next town over (or further). Commuting in the countryside is quicker than in the city and normally more enjoyable too.
   
• Consider taking temporary work to get you going, even if it’s not an ideal position. Temporary work will help get you settled in your dream location, and it will take financial pressure off while you look for a better employment fit.

Most environmental management issues are handled by the 16 Regional Councils in New Zealand.  Local councils are then responsible for land-use zoning.
Farming must be undertaken in compliance with a number of local, regional, and national regulations. These regulations cover land zoning and permitted land uses, animal welfare, land care, pest control and environmental impact, amongst others.
It's important that you understand all relevant regulations thoroughly.  Contact your local council or legal advisor for guidance.

• The lifestyle block you buy should ideally be under two hours travelling time from your home. Longer travelling times between locations can become a trial for children, and thus diminish everyone’s enjoyment.
   
• If you can’t make it to your rural property every weekend, due to sporting or other commitments, you’re unlikely to achieve the full enjoyment of the rural property that you envisaged.  Visiting your property only occasionally may also lead to more maintenance and gardening required when you do visit.
   
• Make sure the rural property has the capacity to be rented out short-term, without expensive renovations.  If there are periods when it's not convenient for you to use it, you can immediately generate some rental income.

 

• If the property isn’t connected to the main council water supply, make sure it has reasonable water storage capacity so that you don’t arrive to an empty tank on weekends. Have the tank cleaned regularly to ensure water safety.

 

• Consider security carefully. Farm houses and rural properties that are not regularly occupied can be the target of thieves. A well secured rural property with basic furniture and appliances is the safest way to go.

There are a large number of ways that your lifestyle block can generate income.  You should select an opportunity that is suitable for your property type, that fits in with your lifestyle and work ethic, and that you'll enjoy being a part of.  Some of the ways that lifestyle block owners produce income are:

• Farming free-range chickens for eggs
• Free range livestock 
• Keeping bees for honey-making
• Using cow or goat milk for making cheese
• Growing niche fruits or vegetables such as heirloom tomatoes
• Making organic wine or cider

The Lifestyle Block website contains a wide range of information that is useful for New Zealand lifestyle block owners.

Large regional centres will offer many of the same employment opportunities as the big cities of New Zealand. Smaller towns may have more limited opportunities, but this could also mean there are skillset gaps in the market or missing business services that you could fill with a new business idea. It pays to keep an open mind.

• Self-employment – There are plenty of opportunities for self-employment, running internet-based businesses, setting up a store or doing freelance work.
   
• Trades – Plumbers, electricians, car mechanics, solar technicians, builders & carpenters are all highly sought after in rural communities.

 

• Small community services – There are many community support services operating in rural communities.  These include services that help the elderly, youth, schools, or other organisations.
   
• Tourism and hospitality – Options include running a bed and breakfast, allowing farm stays (which are particularly popular with foreign tourists), or running a hotel, pub or café.  Consider whether your area is likely to cater to seasonal clientele only, or will benefit from year round visitation.

 

• Retail – Most provincial towns in New Zealand will have an array of popular shops and retail services, including chain stores like Farmers.  Your local area may present an opportunity for you to start your own niche shop or attraction.

 

• Farming - Start your own agricultural venture or find a job supporting the agricultural enterprises of someone else.  Whether you milk cows, shear sheep, feed chickens, or build fences, farm life presents a range of possible job opportunities that can provide an ongoing sustainable income.

To successfully make this lifestyle change, consider the following:
 

• Your expectations must be realistic. It may take some time for you to fully exploit the benefits of relocating to the countryside.
   
• It’s important to extend yourself to meet the members of your new community. One of the biggest surprises for many retirees is the lack of daily contact previously provided by working life.
• Joining a volunteer community service group like Rotary or Lions can be a great way to make new acquaintances and start building new networks. If that’s not for you, getting involved in local sports clubs is another great way to get quickly integrated into your new community.
   
• Don’t assume the countryside is always more quiet than the city to live in.  Some small New Zealand towns are very vibrant and fun-filled, with sporting, entertainment and dining options rivalling city cousins.

• Check the farm’s fences, sheds, water pumps, dams, drains, bores, irrigation, water supply, tanks and any other key infrastructure for any damage or signs of wear and tear. If you’re not sure what you’re looking for, get help from an experienced farmer or farming infrastructure expert.
   
• If buying a dairy farm, thoroughly check the milking shed, milking equipment and tanker access roads.  These items will come in for regular heavy use, and they can be costly to replace or upgrade.
   
• Ask to see the most recent soil nutrient and water test results.  Water tests should cover both irrigation sheds and dairy sheds.  The results of these tests will indicate whether the farm has been well managed by its current owners or needs investment to improve soil and water quality.
   
• Check that effective pest controls are in place, and that regular work has been undertaken to control rabbits, possums, ducks, geese, and noxious weeds. You should also check nearby farm properties, access roads, and adjoining land and water sources for any potential pest trouble spots. You may wish to employ the services of an agricultural specialist to assist you with this.

 

• Make sure the farm house and general farm infrastructure meets your own personal living needs. If not, check that the property has appropriate council approvals and council zoning for any future development.

 

• Check that phone lines and electricity lines are in place, and their condition.  If these utilities are not connected, investigate the accessibility of these services to your location, should you wish to install them in future.
   
• Check for flood plains and areas with access problems or water shortage.
   
• If there are any easements or rights of way through your property, check their condition, and ensure that they are correctly noted on your property Certificate of Title. Even if these paths or roads have not been used for some time, usage by others may affect your ability to fully enjoy the land you purchased.

When you buy a farm, you need to understand specifically which farm assets, equipment and consumables are included, and which are excluded.  Unlike small residential properties, farm properties may have items (like tractors and farm implements) lying across the entire farm, belonging to the current owner.  When you view the farm, you may see these items and assume they are included in the purchase price, but this is commonly not the case.
Some farmers may have a farm clearing sale (similar to a residential garage sale) on the property, to sell off excess farm equipment and other items.  This could occur before or after you sign the purchase contract, due to typical handover timeframes. Check the farm comprehensively when you undertake your pre-settlement inspection, and ensure that you've received all items you believe you have paid for.