6 Benefits Of Owning A Farmland
For eras, the “LAND” has been considered as the reservoir for prosperity and wealth. Well, investing in property is a clever investment, and the value of land always grows with time. In the past few years, there has been a surge in interest for investment in “Farmlands”. Owning farmland has been growing as a big trend in India, and there are multiple reasons following this craze. Some are more necessity like growing your food. Others are financials like getting specific tax benefits or maximizing your returns from your property.
It’s all worth weighing the benefits of owning farmland when you are looking to invest in a property. In this blog, we have mentioned 6 practical reasons or benefits of owning farmland. Keep reading!
1. High Capital Security
It’s very true in land-related developments that the value of your asset doesn’t depreciate with time. But this doesn’t hold for properties like apartments, flats, etc. The quality of the property deteriorates and you would need to spend considerable amounts of money to maintain it. On the other hand, investing in farmland saves you money and also leaves gives you options to use the land for varying purposes in the future, within the margins of the law. All in all, unlike other types of real estate properties where rates fluctuate with the building of new housing units, farms offer limited supply. Therefore, it is unlikely to devalue.
2. Favorable Diversity
As an investor, putting too much into one business, sector, or industry can be distressing in times of crisis and volatility. If you include farmland in your mixed-asset portfolio, it will help you minimize the impact of losses that may occur through other investment portfolios. Farmland negatively correlates with other asset types, and only to some extent relates with real estate. In simple words, while other assets diminish in value (stocks, bonds, etc.), land prices upsurge, as do the yields from agricultural projects. Farmland is and will always be gold, always!
3. High Returns
Farmland investment gives both capital and operating returns in the form of a combination of rental income and value appreciation of the asset. The total yields from farmland have constantly outpaced popular assets like stocks, bonds, real estate, etc. With considerably lower risk, an investment in farmland is considered marginally volatile.
4. Get Wide Open Spaces
More and more people flocking to cities and thousands of buildings built nearby have left most of us feeling cramped. This is one obvious benefit of investing in farmland. Moving out of the hustle-bustle of city life and giving your family the perk of living in wide-open spaces is a big benefit.
5. Grow Your Food
One pretty obvious reason for owning your own farm is that it lets you grow your fruits and veggies. We all know the demand for fresh produce is going up constantly hence it can be a big perk – Financially. Let’s face it, finding reasonably price organically grown, pesticide-free vegetables is tough. When you grow your food, you know what is on it and what it has been exposed to. You also get the opportunity to sell the extra produce as a business and make extra money for your family.
6. It Is In Demand
From the rising number of people preferring fishing, camping, hiking, and other outdoor activities, to a growing population that needs more vegetables, grains, and meat, farmland produces products are surging in demand and will continue to rise.
The benefits of owning farmland can be very rewarding if done correctly. The key here is to get in touch with qualified people to help you make this decision. Make sure to research thoroughly about your specific type of farm and the benefits it can yield for you!
Happy Hunting! Make your dreams a reality by owning farmland.