Investment in farmlands has always been a favorable pick; although, the rising demand and limited availability has substantially increased the importance of investing in farmlands lately. Through this article we aim to equip you with the information about the benefits of investing in farmlands and why it is stirring the markets rapidly.
BENEFITS OF INVESTING IN FARMLANDS
An investment is made with the purpose of extracting the best returns out of it; and investment in farmlands may offer you handsome returns on investment in the long run as compared to other investment options. Along with this, while many urban land investments require heavy maintenance charges, farmland investments let you stay away from building repair costs.
Various investors opt to buy a piece of farmland as a property while others derive the maximum advantages by starting agricultural practices and receive annual profits from the yields. The growing demand for organic farming and its limited availability adds to the advantages of owning farmland. In addition, the agricultural real estate market offers the creation cost to be split among the owners, which eases the burden of capital for the investor to be paid.
Farmlands can be converted into immense profit generating assets by choosing the right crops for productions. A detailed study about the agricultural market trends will equip you with the information about the crops that have the best demands which offer huge returns on their supply. All of this comes without the worries of decreasing land value as farmlands are limited in supply alongside a heavy demand resulting from the rising inflation rates from the markets.
THINGS TO LOOK OUT FOR
Even though investing in farmlands is as good as it sounds, it comes with certain pitfalls to watch out for if you’ve decided to walk the farmland investment road. One of the major concerns is that, according to governmental rules in India, to own farmland one must be a farmer themselves. However, farmland can be transferred as a gift or an ancestral property to the then owner of the land. Another regulation to watch out for is that Non Residential Indians are not entitled to buy agricultural lands in India.
The investor of the land must study the details of the land thoroughly, for instance the land tiles, as agricultural lands are subject to the jurisdiction of state law and thus, proper documentation process is to be followed and an intricate detail to knowledge about the agricultural laws of the concerned state must be possessed. While many states allow for limited land spans to be owned, some states do not have such restrictions and the same has to be checked before aiming to invest in such lands.