We are living in a crowded society with a population exploding exponentially. Living in the cities has become extremely expensive, and we live in matchbox-like flats without proper ventilation. We are fast losing our connection with nature. City living comes with the gift of air, water, and noise pollution to the highest degree and ever-increasing crime rates. Busy towns or cities are crowded, and you feel more stressed. Property prices have gone off the roof. Flats and smaller apartments are being built instead of houses with more extensive gardens to maximize space. There are often fewer green spaces, and you may not always be able to enjoy natural areas. All these factors are damaging to our health in the long term. Every day when you wake up in the morning, you have this feeling of running away from the hustle-bustle. After a weeklong work, you are craving ways to relax and rejuvenate with nature. Sometimes you feel like doing nothing, just watching the surroundings and their serene beauty.
We are becoming increasingly aware of maintaining a harmonious work-life balance. One such option that has gained traction in recent years is to invest in land in remote areas away from city turmoil or simply farmlands. The penetration of holiday homes and demand for farmhouses near metropolitan cities has increased over the years as families are now engaging in nature & leisure activities.
Wealth Creation
As an intelligent investor, you are always looking for newer opportunities to diversify, grow, and protect your investments. You have considered multiple options such as real estate, equity market, mutual funds, bonds, FD, and various other options to accomplish your goal.
Investing in farmland or agricultural plots is largely ignored by investors as they are not aware of the benefits of investing in them. Farmlands are one of the essential assets in the world. When we consider the population expected to grow at an unprecedented pace, the food demand will skyrocket. In such a scenario, even farmers are under pressure to produce more in less land. This has led to the development of new farming techniques like vertical farming and hydroponics. A few years back, celebrities had monopolized buying farmlands and developing them. With easing restrictions and raised interests, investments in farmland are one such realistic option which you should consider. An investment in farmland is backed by a rock-solid asset that is unlikely to depreciate. The past few years of statistics show that farmland has demonstrated strong capital protection characteristics over long periods. Well-managed farmland is a fully renewable resource that remains productive till its sale.
The valuation of farmland increases much faster than inflation, making farmland investment an effective tool for countering inflation and capital preservation. Since these are early days, you can make a kill as the rates are much low. Compared with investing in commodity & precious metals, farmland also provides a regular income to the investor, making it a valuable replacement for lost risk-free income on cash deposits and bonds due to low interest rates. Investment in farmland delivers high returns. It offers both capital and operating returns in the form of a combination of rental income and value appreciation of the asset. As per the past data, total returns from farmland have constantly outpaced popular assets such as stocks, bonds, real estate, etc.
You must have heard the saying, “Don’t put all your eggs in the same basket.” The saying holds particularly true for wealth creation and investing. Ask any financial planner, as the first thing he will ask you to go for portfolio diversification. Farmland returns have no direct connection with traditional asset classes such as stocks and bonds, resulting in no market risks. These features make farmland an attractive diversification tool that can help reduce the impact of market volatility. Additionally, there is a low fluctuation of income. Your investment is not governed by the market risk that comes with other investment tools. Your farmland investment can go up exponentially if the government decides to develop any highway near your farmlands. With the development of highway infrastructure that has picked up speed in the past few years, the chances are that you can make a fortune out there.