Farming perks stack up for lifestyle buyers chasing land tax breaks

Bay views are a big selling point for 221-259 Drakes Rd, Drysdale.

Rural properties with the capacity to run a genuine farm operation are emerging as a popular alternative for lifestyle buyers keen to avoid an extra tax burden on a second home.

Elders, Geelong rural and lifestyle sales manager Peter Lindeman said the potential tax benefits of running a farm had broadened the appeal of traditional agricultural listings in the region.

Properties used mainly for primary production are exempt from land tax in Victoria.

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The You Yangs are in view from 221-259 Drakes Rd, Drysdale, which is just a short drive to the town centre and nearby wineries.

“The primary draw is obviously for lifestyle but there is an undercurrent of agricultural interest activity and the added tax benefits that come with owning a farm,” Mr Lindeman said.

“As urban sprawl continues to push more people into urban areas, Geelong and its surrounding areas are well placed to remain a key destination for those looking to embrace a rural lifestyle while still maintaining proximity to Melbourne.”

He said two premium farming properties listed for sale on the Bellarine Peninsula were attracting strong interest from buyers who recognised both the lifestyle and secondary tax benefits.

Both 221-259 Drakes Rd, Drysdale, and 282-350 Founds Rd, Drysdale, offer scenic elevated positions with panoramic bay views and, importantly, an opportunity to construct new homes on land that has been used to graze cattle.

282-350 Founds Rd, Drysdale, has a large 1.25ha dam, plus a smaller dam.

The property features rolling green hills and improved perennial pasture.

The 14.72ha listing in Drakes Rd has an approved building envelope, while the larger 62ha Founds Rd property comes with endorsed plans for subdivision into two individual landholdings, paving the way for two future dwellings.

Mr Lindeman said Drakes Rd, selling via expression of interest with $3.85m to $4.235m price hopes, was offered to market for the first time in 32 years.

“They both offer a rare opportunity to get a parcel of land with outstanding views and to be able to construct a dwelling on them,” Mr Lindeman said.

“It is probably easier getting finance for established properties with an existing dwelling and improvements so bare land is taking a little bit longer to move but we are finding some of the buyers have sold elsewhere and they are able to transact without having to worry about finance.

“If you are lucky enough to get one of those buyers who have just sold somewhere else and they have come to the area to buy they can transact fairly quickly.”

Expression of interest in 221-259 Drakes Rd, Drysdale, close on July 29, while buyers have until August 25 to submit an offer for 282-350 Founds Rd, Drysdale.

The latter has a $4.8m to $5.28m price guide.

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