Deciding on purchasing a steel farm shed will require a considerable investment, especially if you want to invest in a secure and reliable building. And just like with purchasing a house, many farmers will need to consider how they intend on financing their new farm shed. Here are a couple of options open to Tasmanian Farmers.
Obviously, one of the best and most cost-effective ways, though obviously not an option to everyone. If you can pay for your farm shed in full from your own savings, then you will eliminate the need to pay interest on your new rural steel building. It also puts you in a much better position in the negotiating stages.
SHED LOANS THROUGH FINANCIAL INSTITUTIONS
This is probably the most common way for farmers to finance their new farm shed or machinery shed, but just like you would do with any other loan, make sure you shop around for the best offer. Compare interest rates, fees and exit clauses. Then contact the institutions and see if they are willing to offer you a better deal. Once you are happy with a financial institution, then get your pre-approval. By knowing you have the finance to back your investment will give you better-negotiating power.
EQUITY FROM YOUR HOME LOAN
Another smart move could be looking to see if you have equity in your home loan, if so, then you may be able to re-mortgage your loan, and eliminate the need to pay mortgage insurance, which will be in the thousands of dollars range. It also means that you will only have to make the one payment each month – rather than having two separate loans coming out. You will also eliminate fees associated with a separate loan. However, you will be charged to change your existing loan – make sure you find out all the costs associated with your financial institution before making any decisions.
FINANCE FROM SHED COMPANIES
There are a few shed companies that offer finance through their company. And while their offerings may sound brilliant, just beware, they still need to make their money somehow – and in many cases, the costs of offering you a low-interest loan is often applied to the farm shed itself.
Investing in a new rural building for your farming business is a serious investment, and you should really spend the time to ensure you are getting the best deal and the best bang for your buck. Shop around, understand the conditions and then proceed to shop for your shed.
The team at Tassie Sheds Hobart offer a large range of rural steel buildings, from farm sheds, machinery sheds, hay sheds and dairy sheds, through to stables, barns and arenas. Unfortunately, we don’t offer finance, but we certainly can help you find a fantastic shed that will last for many years to come.