339, 14th B Cross Rd, Sector 6, HSR Layout Bengaluru, Karnataka 560102
Farmland is an arable land that is worked by plowing and sowing and raising crops or trees. Farmland categories include arable land for sustenance crops, cash crops, plantation like coffee, tea estates & timber plantation.
Why Farmland is seeing huge interest from Investors?
If you’re reading this, you’re probably not a farmer.
If you’ve never thought of investing in farmland, now might be an outstanding time to give it some consideration. You’ve probably not heard much about the investment potential of this asset class. But it turns out to be one of the very best long-term investments you can make. There are at least seven reasons to consider becoming an investor, and long-term profit potential is only one of them.
- The World’s Population is Growing – Which Means More Food & Timber is needed.
- “Buy land. They ain’t making any more of the stuff”
- Farmland has Produced Substantial Investment Gains.
- Farmland is a True Alternative Investment.
- Farmland is a “Hard Asset”.
- The World Can’t Survive Without Wood & Food.
- Timber/Crops are an International Commodity.
Benefits of buying a Farmlands?
- Owning a farmland is a fruitful option for creating long term wealth.
- The income earned through farmland is free from income tax.
- There is demand and supply mismatch across the country, which leads to the increase in agricultural farm commodity prices. Same applies to Timber Demand.
- A farm plot is a stable profit-producing asset that has stood through the test of time.
- It has been the storekeeper of fortunes, wealth and value.
- You are sure to reap big benefits on the long run as the value cherishes over time.
- A great hedge against inflation.
Tips on how to make your land a profitable investment: (Self Managed)
- Depending upon the location, you can rent it out for community gardening.
- Start blogging about your newest farming adventures.
- Set up a beehive farm and convert it into a tourist activity.
- If the land is fertile, grow unique flowers to sell at the market.
- Sell plant seeds online.
- Grow herbs and sell it online.
- Offer tours or classes on farming.
- Use the land to generate solar energy.
Risks involved while buying a Farmlands?:
- Conversion is not easy: You cannot convert a fertile piece of farm land into a residential one. The land should be a dry land, for conversion.
- Land Ceiling Act: A number of states restrict the ownership of land. Therefore, check how much can be bought in that state.
- Not everyone can buy: NRIs, for instance, cannot buy farm land in India.
- Knowledge of local land laws and terminology are a must: Buying farm land could be extremely difficult, if the buyer is not well aware of the land laws and the local terminologies used in the course of the transaction.
- Zoning Classification: One major problem you could encounter when buying land is zoning issues with the way the land can be used. Every town has a land-use plan. This basically divides the town into different areas including commercial, residential, farmland, industrial, historical, or even mixed-use.
- Zoning Restrictions: Another factor to consider when purchasing land is the size of the development you will be allowed to build.
- Environmental Issues: Another risk of buying raw land is you do not know what lies beneath the soil. Soil Testing is Must.
- Access to Utilities: How easy is it to get utilities at the location? This includes sewer, running water, electricity, gas, telephone, cable, and Internet.