Dear Aunty,
Thank you for your helpful advice and I am hoping you can help me. I have taken on too much debt and a very nice chap from the bank has just told me that they will not renegotiate my loan and it looks like I will have to sell my farm. I have other property but it is income producing and I can’t sell that or it will make my debt position worse.
The problem with selling the farm is my family loves to go there for holidays and it is near my wife’s parents.
The other alternative is to sell part of the business that has great potential but I know the new owner would let the staff go – some of who have been with me for years and are fantastic. So I feel equally torn.
Aunty, what would you do?
Bruce,
NSW
Dear Bruce,
Me? I would sell the farm. Face facts Bruce. You’re sick of it. All that upkeep, traipsing up there on weekends, having to pop over to the in-laws and chop wood.
Owning a holiday farm is worse than owning race horses – or just as bad – a one-way shute into which you pour your money!
On the other hand, you are building an asset with great staff that could end up buying you 10 farms.
Tell you what. As it is ultimately a family decision, sit the family down and tell them the truth and ask them could they tolerate selling the farm and going somewhere else for holidays for a few years. You could even rent accommodation in the same area. Then, when the business is performing well, you can splurge on another holiday asset.
You never know. They may love the idea, you get to keep your great new business and your staff keep their jobs!
Good luck,
Your Aunty B
To read more Aunty B advice, click here.
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