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Invest in Farmland, he Said…
July 12, 2010Article by Ray Withers
A few years ago people would have laughed if you suggested farmland investing in far-flung countries like Argentina, but here we are living in times when farmland investments promise to be among the most lucrative in the world. Mind, we should be surprised, a few years before that no one would have believed overseas property investment would become so big.
Farmland investing is the perfect investment for today’s novice and/or risk adverse investor, according to international property investment consultancy Property Frontiers. Director of the firm David Cox sad:
“Investment in agriculture is a fairly new form of investment, but it is perfect for today’s investor. With doubts over what kind of pension we will get; never before have there been so many average people out there, looking for a form of investment that will give them a secure financial future. The proposition for agricultural investment is simple; demand for food is continuing to rise as populations grow, yet, with ocean’s rising and country’s urbanising, we aren’t producing any more land.
“But it gets better than that… We work with an established firm in Argentina, specialised in making farmland investing easy for foreign investors. The package we are currently putting our weight behind offers contractual earnings. Basically, the minimum investment is £12,000 and the investors choose whether to invest over 5 years for a 66% return, or over 10 years for a 160%. There is no doubt over the success of the crop, because the payout is locked in the initial contract.”
Cox went onto explain that each investor purchases a defined area of land within a large freehold estate at a 33% discounted price — value is determined by a very conservative method of land valuation that is entirely transparent.
“You are essentially agreeing to buy the land and immediately signing a contract to sell it at a higher price. You are offered to choose a re-purchase within either 5 years or 10 years by means of an Annual Payment, followed by a large Final payment,” he said.
One of the greatest things about the Argentine agricultural investment product is that it can be invested as part of a Self Invested Pension Plan.
“We all want a secure financial future, and the SIPP is a great way of ensuring that. There are many great property investments out there, some of them can even be put in a SIPP, but very few, if any of them make it as easy to understand where your returns come from as farmland investing,” Cox concluded.