Investing is one of the globally trusted methods to create wealth. Investors look for newer opportunities to diversify, grow and protect their investments. To accomplish their goal, people consider multiple options such as real estate, equity market, mutual funds, bonds, FD and various other options available in the market.
Often investing in farmland/ agricultural plot is ignored by investors as they are not educated about the benefits of investing in agricultural land. Farmland is truly one of the most important assets in the world. Considering population growth, over the next decade, the population will grow at an unprecedented rate and the food demand will skyrocket.
We believe farmland is one such realistic investment option which should be considered. It is often recommended due to its scarcity. Here are some of the reasons:
Recession-Proof Investment – India’s population is growing and more land cannot be created. No matter how miserable recession hits people can’t stop relying on food. Due to the mismatch of demand and supply the prices of agricultural commodities keep on increasing. This is one attractive reason why you can invest in agricultural land.
Agri-Income through Farming – Starting organic farming in your farmland to create a high income is not as challenging now as it was decades ago. Cultivating crops which has high-value such turmeric, ginger etc. can give you good profits. Also, the income generated is tax-free as it is agricultural income.
High Resale Value – At least three people in every 10 person buys property/ land for high resale value. The major benefit to farmland investors is that they can appreciate their capital over the years with less investment. Agricultural land promises high long term returns and if your farmland is located next to metro cities like Mumbai, Pune then you can expect much higher returns.
Weekend Home – As farmland is typically more affordable. Some buyers want to use their farmland to fulfil their desire for organic farming while some want to use it as their weekend/ second home. Farmland in the mountains can be a great option for a vacation home. These second home can serve as an excellent getaway for your family to enjoy and relax on the weekend. For farmland buyers from Mumbai, Khopoli near Lonavala is one majestic destination for a second home.
Buying agricultural land and community farming lifestyle is becoming more and more popular among the urban audience. Purchasers must understand that investing in agricultural land is a long-term investment. Return on investment can fluctuate from 12 months to 5 years before generating capital gains.