Farmland as an investment

Farmland as an investment

Since the United Kingdom heads into a period of inflation investors are looking for investments that are safe to maintain and grow capital. Many investors are turning into gold as costs continue to rise because of a growing requirement from investors, but more informed money men think about farmland are the safest investment in 2010 as requirement for food carries on to rise and a serious shortage on the supply side conveys to push up costs and make safer investment yields. Farmland is contemplating an investment since it is a resourcereproducing the commodity that the population needs – food. Consequently retaining its value, particularly and generating an income for landowners.

The worth of agricultural land in the United Kingdom has climbed by 13% for the first 6 months of 2010, and by 19.7% for the twelve weeks to July in compliance with its Knight Frank Farmland Index, its industry benchmark for quantifying agricultural land values. There’s not been a seven year period where farmland from the United Kingdom hasn’t risen in value since records started faster than the inflation rate, supplying investment yields that are safe. The income generated from leasing farmers quality land that is good goes some way to replacing the risk income that is lost because of such low interest rates on money deposits. There’s always of course an element of danger, land values could fall for instance, but as requirement for meals is rising at the fastest pace in history and the amount of property per person in the world has halved from 0.42 hectares to 0.21 hectares, its next seven years is extremely unlikely into be its very initial time that agricultural property values will fall. There’s also a danger that your farming tenant could default on his rent, however this danger is also minimal since agricultural occupancy rates from the United Kingdom are close to 100% all year round. So those investors searching for the safest investment potential should cautiously think about whether a well placed agriculture investment from its shape of good quality farmland may have a very good fit for their portfolio.

October 20, 2017/ by / in

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