Rural

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The Merricks North estate, Ambleside, on the Mornington Peninsula remains listed for sale.
Set on 85 hectares overlooking Western Port Bay, the inland holding has been marketed as one of the region's finest properties.
Kay &amp; Burton's David Heathcote had been quoting more than $12 million for the Ambleside estate with <a href="https://www.domain.com.au/for-sale/merricks-north-vic-3926-2011914965" target="_blank">expressions of interest</a><a href="https://www.domain.com.au/for-sale/merricks-north-vic-3926-2011914965" target="_blank"> </a>closing May 18.
The seven bedroom, five bathroom homestead was designed by Stephen Akehurst in the late 1990s.
A guest cottage also designed by Stephen Akehurst. 
The grounds comes with a croquet lawn, golf driving range and a tennis court.
The farm is divided into 17 paddocks with stock troughs and connected by laneways.
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jchancellor-FAypfDUnLy

Ambleside, Merricks North estate with $12 million hopes

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Bhima at Scone has been sold. And Goanna Downs too.
<a href="https://www.domain.com.au/property/for-sale/rural/nsw/scone/?adid=2010096652&amp;sp=6" target="_blank">Bhima</a> has had a prominent history within the breeding and racing industry, and within the township itself. 
The baton has been handed on to Mike and Kate Fleming of Broadwater Thoroughbreds, Aberdeen. 
Bhima Stud, at Scone in the Upper Hunter Valley, was for sale at $5.8 million through Michael Burke of MacCallum Inglis - a prominent thoroughbred breeding farm, Bhima was developed into a renowned horse property after World War II by Vivian Bath. 
On the town’s outskirts, Bhima occupies 160 hectares.
Its showpiece is an<a href="/news/30080-thoroughbred-stud-farm-sales-and-listings-he-said-she-said" target="_blank" style="line-height: 1.3em;"> historic circa 1910 homestead</a> with 4.8 metre high pressed metal ceilings.
Meanwhile the Hutchins family, a well-known family within the racing industry from Queensland looking to set up a broodmare base in the Upper Hunter, has recently snapped up Goanna Downs from the Dillon family post auction.
The two property sales in as many months has reinforced the status of Scone, and the Upper Hunter Valley as the premier location in NSW for thoroughbred properties, according to MacCallum Inglis property agent Michael Burke.
Michael Burke handled the sale of Bhima and introduced the purchasers to the sale of Goanna Downs.
“The strength of the Scone broodmare property market is underpinned by the ever growing numbers of stallions standing in the Upper Hunter Valley.  
"Our proximity to the stallion stations is our competitive advantage - less transport risk, less cost and a central location to the selling centres. 
"In addition, the Upper Hunter Shire is coal mine free, with no operating mines in our district”.
 “Our agency has seen a rise in the enquiry, and activity rates of interstate, and international buyers looking at the Upper Hunter district and Scone particularly.
"The Australian thoroughbred industry is in such a position of strength and the majority of its’ best stallions stand in this district.
"The local stud property market is well and truly back on its feet post GFC, and these sales are testament of this." 
Michael Burke said an exciting new chapter will now open in the rich history of Bhima. 
"Steeped in success, the property has been under the stewardship of the White family over the last 21 years and boasts an extensive honours list that would make any breeder proud," he said.   
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Upper Hunter Valley's Bhima, Scone proves its thoroughbred property status

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<img src="https://counter.theconversation.edu.au/content/63124/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
What will happen now that the rains have come to many parched beef lands of Queensland? Current high cattle prices and renewed pastures suggest optimism, even good times. Perhaps record exports from the world’s largest beef exporter? If only if was that simple.
While an important indicator of Australia beef prices peaked recently, analysts warned export volumes were likely to fall.
High prices for Australian meat has already seen Chinese imports down this year by 30 percent and US imports down 40 percent <a href="https://theconversation.com/free-trade-agreements-fail-to-boost-australian-agriculture-and-food-manufacturing-47576">(</a>largely correcting a recent Australian trade gain<a href="https://theconversation.com/free-trade-agreements-fail-to-boost-australian-agriculture-and-food-manufacturing-47576">)</a>.
Restocking after drought would seem to account for the near record East Australian cattle price.
Unfortunately, eager buyers paying top dollar for a production input take a considerable risk, as was discovered 40 years ago when prices last peaked.
Not only is a cattle price of $6.66/kg on July 27 2016 still short of around $7.00/kg in the mid-1970s. Costs are markedly higher, as are debts.
Indeed, investigations reported by the Queensland Rural Debt and Drought Taskforce show extremely high levels of financial and personal stress. Key financial ratios are in disarray for many enterprises, small and large, family and corporate. Speculating on near-record cattle prices can, at best, buy a little time.
Most worrying are the inadequacies of income to service very high and rising levels of debts, secured by properties that have halved in values. A debt-deflation spiral is clearly underway.
<a href="/images/2016/08/01/image-20160727-5660-4jbhng.jpg" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/08/01/image-20160727-5660-4jbhng.jpg" alt=""></h4>
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Land and Debt index Queensland Beef. Figures in the Graph reveal ongoing declines in land values below and rising debts above, all the way to 2015. Later year debts are estimates, because of data difficulties. Bush Agribusiness using ABS and ABARE Data to 2012; McGovern projections from 2013
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Using projections, survey data and cross checking with those in the industry, it is estimated debt is up 50 percent since 2006. (A disclaimer is needed here as financiers have refused to release needed data, despite all manner of requests including last November at the Queensland Treasurer’s Rural Roundtable.)
Land values went the other way. In Queensland’s western pastoral areas, for example, Queensland’s Valuer General estimates the land market peaked around 2008 and then fell back to around 2005–06 value levels. “This market continues to be subdued, with very few sales transactions”, it reported.
Even initially very sound borrowers now see serious equity destruction. Extensive capital exposures seem to have been little appreciated, all round. Farmer equity below 70% is usually regarded as high risk. Average equity positions of even previously very low risk enterprises are now likely to be markedly declined.
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<img src="/images/2016/08/01/image-20160727-5666-1vrtrwi.jpg" alt="">
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Illustrative Industry Equity positions 
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Apprehension, deep angst and quiet hope were evident in hearings of the Rural Debt and Drought Taskforce held across Queensland six months ago. The report is now in, but is surprisingly little discussed so far.
Evidence of widespread, serious financial and other problems has led to 14 recommendations, including establishing a reconstruction board, agricultural bank and a Royal Commission. Action was recommended on income, education, mental health and other needs.
In a nutshell, serious responses to major foundational financial problems are needed. Farm and town enterprises are depressed with many (once) “resilient” communities very much on the edge.
Rural Bank recently published research which reinforces the seriousness of the problem. A high number of transactions occurred in a rising market with asset values rapidly moving away from income potential. A significant number of loans involved speculation, on both sides of the agreement.
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<img src="/images/2016/08/01/image-20160727-5643-emu4iu.jpg" alt="">
<h4>Rural Bank, Queensland North: build to twin peaks highlighted</h4>
Fundamentally, incomes cannot support debts. What on earth was going on when, across Australia, farmland prices and associated debts inflated in the teens each year for almost a decade, while incomes hardly moved?
The subpriming of Australian Agriculture is just one of the questions facing further Parliamentary Inquiries into finance, and Royal Commissions.
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<h4><img src="/images/2016/08/01/image-20160728-21569-o0zmg.png" alt=""></h4>
<h4>ABARES land and receipts per ha</h4>
It is time for not just plain talk on rural debt but for effective actions.
Problem loans now need to be re-solved, equitably. Land values need to be re-linked to earning capacity. A sustainable financial basis needs to be re-established across not just beef but other agricultural industries.
A well-constituted reconstruction board is pivotal in rectifying balance sheet stresses, catalysing solvency and brokering prudent inter-generational change.
Reconstruction in Australia’s past has achieved more equitable and higher value resolutions while avoiding fire sale losses, contagion, needless impoverishment and major capacity destruction across economies and communities.
“Political pressures will always favour the provision of liquidity; lasting solutions require a willingness to tackle the solvency issues,” wrote former Bank of England Governor <a href="https://books.wwnorton.com/books/The-End-of-Alchemy/">Mervyn King</a>.
Just maintaining rural liquidity by offering effectively unsecured public finance (such as with Drought and Dairy concessional loan program) despite criticism from Australian National Audit Office and other reports, seems foolhardy. More or slightly cheaper debt to those struggling with major debt overhangs is no real solution.
Doubling up by blaming the implementing state agencies for program design failures and then marketing these as the cornerstone Federal (and perhaps State?) policy is just foolish.
Four points in summary:
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Current rural problems are relatively easily solvable, and earlier generations succeeded. Solutions require governments and industries attuned to more prudent financial and monetary thinking.
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There will always be losses in any correction but good policies, public and private, can contain and sensibly distribute losses.
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Enterprises, industries and nations that recognise when important trends change and act accordingly can thrive while others stagnate.
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Problems now evident in beef can affect any sector over-reliant on debt financing. Apt early interventions are far more effective than playing costly catch up.
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Unaddressed, problems will only spread. The temptation today is to pass on problems, uncorrected, to the next generation. Alternately, a competent and committed willingness to tackle significant solvency issues will underwrite our future prosperity, individually and as a society.
Mark McGovern is senior lecturer, QUT Business School, Economics and Finance, Queensland University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/mark-mcgovern-168" target="_blank">here</a>.
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Crippling rural debt looms as biggest threat to our beef producers

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China's Fullshare Group has bought the Red Hill Estate vineyard on Victoria's Mornington Peninsula for just over $5 million.
The 17 hectare Shoreham Road estate was established in 1989 by the late Australian businessman, Sir Peter Derham and Lady Derham.
It produces chardonnay, pinot noir, shiraz and other varieties under the Red Hill Estate and The Bench labels. 
Rated five stars by wine critic James Halliday, the estate with 9.7 hectares under vine sold through CBRE. 
Fullshare, a top-500 Chinese company with real estate projects in Australia and also Canada, is chaired by the Hong Kong real estate billionaire Ji Changqun, ranked the 73rd richest man in China according to Forbes.
Fullshare's earlier Australian investments include the Sheraton Hotel in Port Douglas, the Whisper Bay units and apartments at Airlie Beach and the Laguna Quays resort.
Sir Peter Derham passed away in 2008, but the Derham family remains shareholders in the investment company, R H W Property that owned the property.
The Australian Financial Review reported other shareholders include Red Hill Estate chairman Martin Brenton, Deloitte tax partner Dwayne Sleep, former Deloitte partner Tim Gullifer and restaurateur Max Paganoni, owner of Max's Restaurant on the estate.
Last year the Sexton family acquired the peninsula's first vineyard, Main Ridge Estate in Red Hill, with three hectares under vine for $3.25 million.
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Mornington Peninsula vineyard sale to Chinese buyers

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GUEST OBSERVER
Agriculture in vogue: New commercial loans to the Agriculture sector hit 6-year highs in the year to January.
Lending: Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after falling by 5.2 percent in December. Total lending is down by 7.4 percent on a year ago – the biggest annual decline in 3ó years.
Trends: In trend terms lending was down 0.9 percent in January – the fourth consecutive fall. Lending was up just 2.1 percent on a year ago – the weakest growth in almost three years.
The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.
What does it all mean?
Aussie consumers and businesses remain cautious about taking on more debt. Interest rates may be at or near generational lows, but that is no guarantee of higher rates of borrowing. In fact, after running up over the past two years, new lending commitments seem to have hit a ceiling. Effectively borrowers are saying that’s enough for now. 
Leasing is in favour though as are loans taken out by consumers to buy new cars.
The interesting point for the Reserve Bank though is whether another cut in the cash rate would serve any purpose. Borrowers are cautious about taking on more debt. And lower interest rates compress bank margins, affecting profits and potentially investment, employment and shareholder returns.
Click to enlarge
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Mining has fallen from favour, to be replaced by agriculture sector. Loans to rural businesses over the past year were the highest in six years. The lift in lending coincides with renewed interest in the sector from overseas investors and expectations of stronger Asian demand for Aussie food and beverage products.
What do the figures show?
Total new loans (personal, business, housing &amp; lease) fell by 2.9 percent in January after a 5.2 percent fall in December. Lending had hit a 7ó year high in September. Total lending is down 7.4 percent on a year ago.
Housing finance: The seasonally adjusted measure of construction and new purchases fell by 4.3 per cent in January while alterations &amp; additions rose by 1.5 percent. Home loans are up 15.9 per cent on a year.
Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell by 2.5 per cent in January after falling by 8.8 percent in December. Revolving credit commitments fell by 2.2 per cent (-23.1 per cent in December). Fixed lending commitments fell by 2.5 per cent – the fourth straight decline. 
Business loans are down 16.3 per cent over the year.
Over the year to January, total business lending was $531.6 billion, up 7.4 per cent over the year. Lending rose most in Victoria (up 13.1 per cent) followed by Queensland (up 10.9 per cent), South Australia (up 9.4 per cent), NSW (up 7.8 cent) and Western Australia (down 13.2 per cent). No consistent data was available for other states and territories.
Personal finance : The seasonally adjusted series for the value of total personal finance commitments fell by 1.4 per cent in January after rising by 2.1 per cent in December. 
Revolving credit commitments fell by 1.6 percent and fixed lending commitments fell by 1.2 per cent.
Personal loans are down 8.1 per cent over the year.
Within personal fixed finance commitments,  loans for new cars were up by 1.0 per cent on a year earlier while loans for used cars were down by 2.4 per cent. Loans for residential blocks of land were down by 10.0 per cent on a year ago – the 14th  decline in 15 months.
Lease finance : Lending rose by 3.7 per cent in January and was up 18.8 per cent over the year.
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What is the importance of the economic data?
Lending Finance  is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
What are the implications for interest rates and investors?
The slowdown in new lending runs counter to other indicators such as record dwelling starts, record tourism and strong employment growth. Still, it does accord with record car sales. Overall it appears that consumers and businesses remain happy to use their own funds to make purchases.
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The Reserve Bank will maintain its ‘easing bias’ although it may publicly express doubts about the ability of lower rates to boost activity.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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Loans to rural sector at six year highs: Craig James

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Glenray Park, the historic Yetholme homestead, has been sold by Mary Moody, one of Australia's leading horticulturalists and gardening authors.
Lovingly restored and cared for over her 20 year tenure, the home was built near Bathurst by Mabel Walshaw in 1908.
It sold at $746,000
It has been marketed as having stunning mature ornamental park-like garden surrounding the homestead which boasts the grandeur of historical homesteads with a surge of new age sustainable living. The five bedroom, two bathroom triple brick homestead has 14 foot ceilings, five fire places, and Oregon doors and trims.
Within the 20 acre property, there is a permanent mountain spring and Frying Pan creek water. There have been cattle run on the farm on the western slopes of the Blue Mountains in New South Wales.
The grounds have two irrigated propagation/shade houses for the professional market gardener and chook house and home vegetable garden. 
There's a 1920s dance hall once used for community dances and meetings could be transformed into a functions room or artists studio. 
<a href="https://raywhiteruralemmsmooney.com.au/nsw/yetholme/1276127/" target="_blank">Glenray Park</a>, at 61 Porters Lane, Yetholme, sold through Ray White Emms Mooney agents Patrick Bird and Sam D'Arcy. There were $700,000 plus expectations.
Yetholme is 20 minutes east of Bathurst and two hours drive from Sydney's CBD. 
<a href="https://www.marymoody.com.au" target="_blank">The gardening author</a> who trained as a journalist in the late 1960s at the Australian Women's Weekly was a long time presenter on Gardening Australia from her then Leura, Blue Mountains home. Her memoirs included Au Revoir, Last Tango in Toulouse, The Long Hot Summer and Sweet Surrender.
She has lead tours in France and the Himalayas and has written a book and made a film on a local rural French restaurant, Lunch with Madame Murat, for the SBS Network.
Glenray Park has been listed following the death of her partner, the film maker David Hannay in March 2014. It was 2001 when the couple relocated permanently to the Bathurst district after selling Villa Florence, their Katoomba cottage.
Moody is moving back to the mountains to be closer to family, but intends keeping a small block of land with an eco-cottage.
The Yetholme property was sold to buyers from the Blue Mountains.
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Gardening storyteller Mary Moody sells Yetholme, Bahurst district farm

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<div class="page" title="Page 1">GUEST OBSERVER</div>
Lending: Total new loans (personal, business, housing &amp; lease) fell by 1.4 percent in April after rising by 1.3 percent in March and rising by 2.1 percent in February. Total lending is down 6.9 percent on April 2015. In trend terms lending fell 0.1 percent in April to be down 4 percent on the year.
Within personal fixed finance commitments, loans for new cars were up by 30.5 percent on a year earlier while loans for used cars were up 20.5 percent. Loans for residential blocks of land were down by 6.4 percent on a year ago.
Rural loans lift: In the year to April, loans to the Agriculture, forestry and fishing sector were up by 11.5 percent to $23.3 billion – a 61⁄2 year high and just off the record high of $23.5 billion.  The lending figures have implications for finance providers, retailers, and companies dependent on consumer and business spending.  
What does it all mean?
When you consider how low interest rates are, the fact that lending is still struggling to push ahead of the highs recorded 71⁄2 years ago is quite remarkable. Businesses and consumers are more inclined to pay down debt rather than take on new commitments showing that the global financial crisis is still affecting the collective psyche.
But there are some stand-out areas. Aussie consumers are keen to update their rides, borrowing a record $15 billion over the past year to buy new or used cars. And in the business space, loans to the rural sector totalled $23.3 billion over the past year, just below record highs. Record car affordability is boosting car sales. And keen global interest in Australia’s food and beverage products are driving interest in the farm sector.
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If businesses do start taking on debt with more gusto, this should be a precursor to increased spending on equipment and therefore more investment. For the Reserve Bank, this is the last shoe to drop. The economy is running at the fastest pace in 31⁄2 years, consumer spending is above-normal, housing is strong and the job market is improving. If business investment starts lifting then rate hikes will finally be taken off the agenda What do the figures show?
Lending Finance
Total new loans (personal, business, housing &amp; lease) fell by 1.4 per cent in April after rising by 1.3 per cent in March and rising by 2.1 per cent in February. Total lending is down 6.9 per cent on April 2015. In trend terms lending fell 0.1 per cent in April to be down 4 per cent on the year.
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Housing finance: The seasonally adjusted measure of construction and new purchases rose by 0.1 per cent in April while alterations &amp; additions fell by 0.5 per cent. Home loans are up 7.9 per cent on a year.
Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments fell 3.3 per cent. Revolving credit commitments fell 5.0 per cent and fixed lending commitments fell 2.8 per cent. Business loans are down 14.4 per cent on April 2015.
Personal finance: The seasonally adjusted series for the value of total personal finance commitments rose 5.0 per cent. Revolving credit commitments rose 14.2 per cent, while fixed lending commitments fell 0.9 per cent. Personal loans are up 2.0 per cent over the year.
Within personal fixed finance commitments, loans for new cars were up by 30.5 per cent on a year earlier while loans for used cars were up 20.5 per cent. Loans for residential blocks of land were down by 6.4 per cent on a year ago.
Lease finance: The trend series for the value of total lease finance commitments fell 1.6 per cent in April 2016 and the seasonally adjusted series rose 0.4 per cent, after a fall of 7.8 per cent in March 2016. Lease loans are up 2.9 per cent on the year.  What is the importance of the economic data?
Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.
<a href="/images/2016/06/10/Screen%20Shot%202016-06-10%20at%201.21.43%20PM.png" target="_blank">Click to enlarge</a>
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What are the implications for interest rates and investors?
The latest lending data precedes the May interest rate cut, so we will need to wait a few more months to see how both the rate cut and Budget measures have affected lending. Business lending has eased over the past five months from 8-year highs. The pull-back in lending is something to monitor, and serves to keep rate cuts on the agenda.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
 
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Rural lending in vogue: CommSec's Craig James

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GUEST OBSERVER
Ever fancied a tree change or a sea change or any kind of change - where you set your sights a few hours away from the capital cities? It's an increasing phenomenon for both investors and home owners.
What makes regional properties so attractive to investors is how affordable they are. They boast a much better entry price than their city counterparts. As capital cities such as Sydney and Melbourne become more expensive in terms of both property and lifestyle we're seeing a small exodus of renters and lower income earners to regional centres such as Newcastle or Geelong.
As these areas boost their infrastructure and local economies, this in turn further encourages population expansion. It's not even just regional centres but also major towns. Certainly several experts have noticed the imminent expansion out to the country and regions driven in part by the sky rocketing prices of Sydney and Melbourne.
All of this means that well-chosen regional centres are an exciting proposition for the canny investor.
Buying in regional areas come with a whole new slate of potential risks you may not have thought of.
However, buying in regional areas come with a whole new slate of potential risks you may not have thought of. In cities you may have to contend with strict council planning permissions, aircraft noise or lack of parking. But property investors in rural or regional areas can possibly be up for anything from feral cats to flooding and fires and drought. Let's run through a few of the usual and unusual pitfalls to consider:
 
Flood Zones: With a rapidly shifting climate, flood areas themselves are changing across Australia. There are even parts of Sydney that are identified as flood zones. Other regional centres have a history of flooding - parts of the coastal plains on the South Coast, such as Thirroul - being notable examples. Then there can be once-in-a-lifetime, catastrophic floods, like the floods which swamped Brisbane and Queensland a few years ago.
Scour through the local government records and ask to see the flood zone map for your property. While the council has the responsibility for flood prevention, in certain circumstances the property owner does too. Flood insurance will also add to the cost of the property. 
 
Soil: It's critical to do soil tests for any property you buy in regional or rural areas. The type of soil that your property is situated on can incur extra costs for earthworks and land retention. Hire a professional engineer to carry out tests. They will look for things like contaminants, and if the property is on a large rock. All these things will affect the foundation the house is built on and also affect any plans to subdivide and add new buildings. 
Fire danger: This is part and parcel of the harsh landscape of Australia. Bush fires have become more menacing and frequentin recent times. So it’s crucial you check with the local council and ask to view the bushfire prone map. This will tell you how dangerous the area you're buying into is and how susceptible to fires. You'll need to consider insurance and there may also be bushfire construction compliance codes you need to meet which will add to the cost of building the house and perhaps limit what you can do with it. 
 
Crown Roads: Crown roads are an infrequent oddity that can catch regional property owners by surprise. Essentially crown roads are long dormant roads that run through properties. They are usually not even visible nor are they roads in the strict sense. They are more like old worn out tracks and are often only visible on survey maps. Nonetheless they can cause all kinds of headaches for the owner of the property.
Crown roads mean that members of the public are allowed to drive through the property provided they stay on the road. It can be difficult to develop or renovate your property as the crown road cannot be moved and you'll find yourself working around it. And trying to get rid of the crown road is legally difficult and can be highly expensive or both. Not to mention how crown roads can create bad blood with neighbours in battles over access. 
So to avoid the trauma and stress of a crown road check out the survey maps to any property thoroughly.
Utilities: How well connected is the property for water, gas, electricity and heating? If it is somewhat self-sufficient by using systems such as rain water tanks or solar panels – then commission a report and find out the average rain levels or sunlight. Also it’s worth checking out the worst case "what ifs"... For example, what if the roads to the town are all flooded, can the property cope on its own for a few days? What kind of emergency utility back-ups do you have in case of natural disasters?
Area development: What kind of industries may move in next door? This can be anything from highly disruptive operations like coal seam mining to abattoirs and fruit harvesting. It's worth investigating the local economy generally. Country and regional areas are highly affected by any sudden changes to the local industry; for instance, if a large plant closes down or a new rural cattle station opens up. This will have a flow on effect to the economy and the population growth. 
Environmental protection: You'll definitely need to investigate your land management responsibilities. This covers a whole raft of things from pest or weed control, to land degradation, removing trees or building and maintaining fences, native vegetation and health issues. Both the state government and local government may have different requirements form you the landowner. So take care to find your what your responsibilities are and factor in any potential costs. 
So, to sum up, just as much, if not more research is required when buying into regional and rural property markets. There are a slate of highly variable differences to consider that can affect whether your investment is really viable. So, to paraphrase John Williamson - do give us a home among the gum trees but check that the plum trees aren't going to fall on the house.
 SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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Tips for buying property in rural or regional locations: DPN's Sam Khalil

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The South Gippsland property looks like a car yard, but the Poowong property is a 767 acre dairy farm milking 550 cows.
It has been sold at $8.1 million through Harcourts Warragul agent John Rowe. It was listed initially in March last year, and has mostly had price indications around $8.5 million.
The property is located in the Victoria district with what is considered some of the most highly reliable natural rainfall regions in Australia, 110 kms East of Melbourne .
It was marketed as having close access to many major milk processers , including United Dairy Power, Burra Foods, Longwarry Milk Park, Murray Goulburn and Fronterra all within 50km. 
There was a 40 Stand rotary with automatic cup removers, automated milk meters and automatic teat spray and 29,000 litre milk vat capacity with access for B-double tankers at <a href="https://www.ruralview.com.au/Real-Estate/185-o-gilvys-road-poowong/Property-Details-buy-rural-7148617">the 185 Ogilvys Lane farm</a>.
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South Gippsland dairy sold at $8.1 million

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Nagambie's Bob and Rosemary Scarborough have their 122-hectare, Wood Nook Farm listed for sale with $10 million plus hopes.
With frontage to the Goulburn River, the property with 1870s homestead is being marketed by Danny Thomas <a href="https://www.youtube.com/watch?v=5ldiIORALj4" target="_blank">CBRE Agriculture</a> for the Moonee Valley Racing Club chairman and his wife.
The horses of the leading thoroughbred breeders were dispersed last month at the Magic Millions 2015 National Sale.
With Group One winners including Final Card, Gallica, Gold Ace, Hit the Roof, Leica Guv, Light Fantastic, Marble Halls, Sleek Chassis and Stella Cadente, Wood Nook Farm was one of the best producing thoroughbred nurseries in Australasia.
“It is with heavy hearts that we are winding up Wood Nook Farm and dispersing our entire bloodstock portfolio and in due course selling the farm,” Bob Scarborough said after 21 years ownership.
<img src="https://images-2.domain.com.au/2015/06/25/6641731/Article%20Lead%20-%20wide997461978ghv6mpimage.related.articleLeadwide.729x410.ghv2l6.png1435274682092.jpg-620x349.jpg" alt="Moonee Valley Racing Club chairman Bob Scarborough is selling the landmark Wood Nook Farm.">
“Rosemary and I have really enjoyed our time at the races and sales over the years and have been lucky to enjoy so much success.”
“I’m approaching 70 and we have decided that this is the right time to disperse our bloodstock,” Bob added.
“The thoroughbred racing and breeding industry has been fantastic to us and we have met most of our close friends through the industry, but it’s time for a complete lifestyle change. We plan to travel and spend more time with our six grandchildren who are growing up too quickly.”
“We won’t be lost to the racing industry as I will continue on as chairman of the Moonee Valley Racing Club and remain dedicated to its future success and growth and will also remain on the Australian Pattern Committee.”
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