Say, you have grown tired of the hustle and bustle of the city that you have decided to buy a property in a rural area. Or, you want to start a career in farming and agriculture. Well, whatever your reason is, you have to know that purchasing rural properties, or particularly farmlands, may not always be straightforward compared to residential lots.
Finding the right price may be a challenge, as well, especially if you are not familiar with the location. This is where rural experts and agents come in to guide you in your journey to this particular property sector.
Finding Farmland and Estate Agents
There are firms that deal with agricultural land aspects like planning, valuation, and reviews for rent. While there may be fewer rural estate agents able to deal with wide acres of land, it is crucial that you know your market and research on areas with a high percentage of farmland.
Understanding the Possible Costs in Purchasing Farmlands
The increasing shortages of farmland mean that demand outweighs supply. Beginning the recession, land value was priced about £3,000 per acre. When people started investing, prices ranged above £12,000, with a recent drop averaging between £8,000 and £9,000.
Lands and properties with water or a lake reservoir have higher prices, as this gives more opportunities for growing crops. Coordinating with a rural agent in farmlands and your property tax accountant may lead to decent pricing options and learning your financial capabilities in buying farmlands.
Making Investments in Agriculture
The best time to buy and invest in farmlands is usually during the spring season since this allows time for sellers to harvest their crops and for buyers to settle in. In terms of stocks, investors usually expect a 3 to 5% growth per year, with yields in agricultural lands at 1 to 1.5%.
The levelling of capital growth means that investing in a farmland will yield long-term return. Unlike residential properties, farmlands are 100% free from inheritance taxes when passed down, making this advantageous for capital gains and tax relief.
Getting into the Business
If you do not have the financial means, getting into farmland and agriculture is still a possibility. Matchmaking services allow landowners with starting farmers and rural entrepreneurs to build their agriculture career, much like modern-day internet dating apps.
Taking on a farmer's apprenticeship can also get people started, with or without experience, in addition to other ventures such as farm management and crowdfunding.
Developing the Skills Needed
Even in farming and agriculture, networking and people skills are still needed to develop the business, especially for people just starting out in the industry. Other necessary skills are leadership and innovation.
You have to understand that tending a farm or a large chunk of land means delegating work and motivating others to be supportive and hardworking. Being open-minded and questioning how things are done are also important aspects for developing people skills and cultivating entrepreneurial skills important not only in farming but also in life beyond the barn.