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Purchasing and Refinancing Hobby Farms and Lifestyle Acreage Properties

Purchasing and Refinancing Hobby Farms and Lifestyle Acreage Properties

Purchasing and Refinancing Hobby Farms and Lifestyle Acreage Properties

Moving to a hobby farm acreage property or purchasing a weekender is a common scenario we assist with on a weekly basis.


A hobby farm is a small-scale agricultural operation that is run primarily for pleasure, rather than for profit. Typically, hobby farms are owned and operated by individuals or families who have a passion for farming and want to live a more self-sufficient lifestyle.

Hobby farms are usually smaller than commercial farms, and the crops and livestock raised on them are generally not intended for sale on a large scale. Instead, hobby farmers may keep a few animals for personal use, such as for meat or eggs, or grow a small garden for fresh produce.

Hobby farms can be found in rural areas or even in suburban areas, and can offer a peaceful retreat from the hustle and bustle of city life. Many hobby farmers enjoy the lifestyle and the opportunity to work with animals and plants, and find it rewarding to produce their own food and goods.

When purchasing or refinancing a property which is either a hobby farm or large acreage lifestyle property, below are some helpful tips:

1. Make sure you are working with a lender who will accept this type of property. We have a group of lenders who will work from a 10Ha property all the way through to a 100Ha property. If the property isn’t earning income as a farm, has a home or liveable dwelling and certain criteria are met, a residential home loan is possible. This can reduce interest costs, establishment and ongoing fees compared to having to obtain a commercial or agribusiness loan.

2. Have a specialist in acreage and rural property finance run the numbers for you. We frequently get referrals from clients who had a preapproval, but not for this type of property size and type. These clients have been through the approval process with a lender and at the last minute, the property isn’t supported, and they are in a mad rush to get an approval, so they can proceed with the property purchase. Getting it right the first time can reduce stress and anxiety and also save you valuable time.

3. Make sure you get the right loan type for your purchase or refinance. The difference between a residential home loan (or weekender loan) can be significant, in terms of interest rate, loan term and costs. This type of property finance does require specialist knowledge and experience. The ability to work with lenders who do this all the time and have an appetite for acreage and rural lending is critical to securing the most competitive home loan.

4. When refinancing or consolidating debt, you can use available equity in a rural residential property. We have undertaken many debt consolidations, using equity in properties up to 100Ha, which have saved customers thousands of dollars a year, by paying out and closing expensive credit card and personal debt. Working with an expert in this area who understands all of the options, has excellent contacts with lenders and knows the specific policies and products can make a big difference.
With rising interest rates expected over the next 12 months, it has never been more important to have the most competitive home loan and to consolidate expensive personal debt, to free up cashflow and savings buffers.

Hobby Farms

In the event that a specific property is a commercial farm, it is also important to work with the best possible small business or agri business banker to structure your loan properly. This is vital to obtain the most competitive rate, loan terms, options for growth and expansion. It is also important to seek advice from your taxation adviser and other professionals. Every dollar counts and having the most efficient strategy is our number one priority at Rivendell Rural Finance.

Please feel free to give Alison a call on 0416421688 for a friendly chat or email her here about Purchasing and Refinancing your Hobby Farms and Lifestyle Acreage Properties today.

At Rivendell Finance, we offer a free scenario service and welcome your phone call or email, where we can work through the numbers and advise the best option(s) possible. As acreage and rural lending specialists, we do this day in and day out and love working with these types of properties.


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