Tools such as commodities, gold, crypto money, stocks, and bonds are generally preferred for investment. These instruments have their unique features and profitability. However, in recent years, agricultural lands have also been preferred as an investment tool. So, is farmland a good investment? Why should you buy farmland? You can find the answers to these questions and the advantages of buying agricultural land in the continuation of our article.
There are different reasons for buying farmland. Prominent among them are as follows:
• Protection Against Inflation
It is now known by everyone that the economic policies followed during the pandemic period turned into inflation. Inflation, on the other hand, is a serious threat to investments as well as to economies. In such periods, investment instruments that are resistant to inflation should be preferred. Agricultural lands draw attention to these features.
Those who invest in agricultural lands have two different sources of income. The first of these is obtained by selling the products produced in the relevant agricultural land. One of the most prominent areas in the inflation period is the food sector. The fact that the price of food increases more than inflation means that the income obtained is protected against inflation. The second source of income is the value of the land purchased. Land prices, on the other hand, increase more than inflation in almost every period. Therefore, it can be stated that agricultural lands are an effective means of protection from inflation.
• Stable Income with Low Volatility
Selling products from agricultural lands is an important source of income for investors. However, there are perceptions that this income may show uncertainty. Such perceptions are extremely wrong. Because agricultural lands are investment instruments with low volatility.
In a study covering the period from 1992 to 2020, the volatility of different investment instruments was measured. According to the results of this research, the volatility in gold is 14.8% and the volatility in the stock market is 16.7%. On the other hand, volatility in agricultural lands was only 6.8%. Therefore, agricultural investments provide stable and predictable incomes.
• High Profitability
Agricultural lands, when managed correctly, will turn into highly profitable investment instruments. The ROI ratio in investment is very important. In other words, the recovery period of an investment should be as short as possible. While this period is between 20-30 years in real estate investments, it is only 9-10 years in agricultural lands. Moreover, if the prices of agricultural products increase, the period will be shortened even more.
Products with high commercial value such as walnuts, olives, almonds, and pistachios give you back your investment in just 9-10 years. When the trees in your garden are 9-10 years old, your annual profit rate will vary between 25% and 40%. There are very few investment instruments that provide such high profitability.
• Passive Income Source
When you benefit from InvestAgrolidya garden management services while investing in agricultural lands, you will create a passive income for yourself. As a result of your investment, the garden installation and management of the agricultural land you buy is completely done by us. So, you earn passive income without having to farm actively. The income from the sale of the products obtained from the land will exceed your expectations.
• Portfolio Diversity
While choosing among investment instruments, it is very important to ensure portfolio diversity. Thus, the risks related to the investment are minimized. However, this diversity needs to be ensured by means that are completely independent of each other. At this point, one of the prominent options is agricultural lands.
Agricultural lands: It is not associated with investment instruments such as gold, bonds, crypto money, and stocks. Its value changes independently of them. It should also be noted that there is usually an upward change in value. Due to the features, you can invest in agricultural land to ensure your portfolio diversity.
InvestAgrolidya Professional Garden Management Services
One of the most important reasons for you to invest in agricultural land is the professional garden management services provided by InvestAgrolidya. Thanks to this service we have provided, you will both gain passive income from your agricultural land investment and increase the value of the agricultural land.
Within the scope of our services, we ensure that you buy land with suitable conditions for agriculture. Then we perform the professional garden installation for you. After installation, we take care of the garden professionally. We sell the harvest with the best price guarantee and transfer the net profit to you. As you earn income from the sale of products produced on the land, the garden established on the land also causes a serious increase in the value of the land. If you want to take advantage of our services or get detailed information, you can contact us.