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Why Farmland Remains an Ideal Real Estate Investment

Posted by charol on July 13, 2023
Invest In Farmland, Reap big!

Quite often, investors remain uncomfortable taking on some investments because of upfront costs and lack of professional advice, this is equally the same with farmlands.

But, do you know that farmlands are an ideal investment to earn and generate a steady income? From renting or leasing it out to utilising it yourself for activities like farming and recreational facilities, agro-tourism farmland becomes a unique real estate investment. But also because farmland has opportunities for diversification when you choose to sell, it will attract a competitive market because it already has or can attract other improvements on it.

 Many investors in real estate tend to ignore farmlands because they are relatively expensive, and the upfront costs are high but this remains a relatively unique investment to generate income from because from farmland you can receive a variety of sources of income which may include periodic rentals, and utilizing it yourself through activities like farming but also land prices appreciates over time and you can profit highly even when you chose to sell it as row land.

Why you should invest in Farmland;

Farmland helps you to diversify your income and security against other social-economic challenges like losing a job. It gives you an opportunity for steady growth today and in the future.   

Interesting to note also is that, the increasing population in the country and the rural–urban spiral migrations, come with an unprecedented supply–demand imbalance in food production. So investing in farmlands provides an answer in that increasing food production needs and decreasing land creates demand and supply imbalance.  

Whereas there is always some risk associated with any real estate investment, farmland is generally considered a relatively safe and reliable form of real estate investment due to its potential for generating long-term income and appreciation in value over time. Economies will always have shocks but the impact compared to other investments cannot be compared with farmlands for example despite whatever economic shock like the Covid-19 pandemic food remained key and farmlands were a solution. Farmlands have low volatility compared to other investments because investments in farmland can remain relatively stable than other assets.      

Investing in farmland is ideal because it’s a limited and diminishing resource and because of this the demand for it is always high meaning that it can generate profits because land prices continue to increase time and again and has a variety of turnover opportunities. For example, you can purchase a farm through a sales-lease transaction where the current owner continues to utilize the farmland but pays you rent but you can also buy it and lease it out to another tenant not necessarily the previous owner.

 As an investor, you can buy this farmland to use it yourself for agriculture, use it for crop production, livestock or poultry. Do you know that you can start a farmer’s market on your farmland?

Don’t wait to invest in farmland, leave it idle, or think this investment has no potential, at Amity Realtors, besides making it easy and convenient to access farmland, we also give professional advice on how you can effectively use your farmland to profit from it. We have farmlands in Mbarara city, Mbarara district and surrounding areas like Isingiro, Kiruhura, Rwampara, Ntungamo, and Sheema.

Interestingly most of our farmlands are on the market. We consider vital factors for any interested party or investor to profit from it and that is why the location of these lands is in proximity to infrastructure like roads and electricity and market potentials.

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