Land ownership has so much to offer in terms of lifestyle benefits, that it is easy to focus on that side of things, rather than the financial returns.
However, land is a very interesting asset class in its own right, with some highly attractive investment aspects.
Let us take a look at six powerful factors relating to land as an investment… (Read on …)
Owning a piece of country or rural land opens up all sorts of possibilities. Here are seven major attractions to look for and consider.
The specifics are going to vary from land holding to land holding, but this list may help you make up your mind, as to whether to invest.
Attraction 1 - Enjoy Playing On Your Land
You can walk about your land and enjoy being out of the towns and cities. Sit and have a picnic perhaps. Drive about, maybe with fun vehicles like off-road cars, motorcycles, quad bikes and tractors.
And, you can enjoy cycling with a mountain bike and getting some healthy exercise.
If there are some trees, then play in the woods - do some forestry, build a log cabin or a tree house perhaps, make a camp-site - that would be fun.
Attraction 2 - Growing Fruit And Vegetables
More and more people who care about what we eat, are choosing to grow their own produce. The taste is better and you know exactly what inputs have gone in during the growing process. It’s your choice what pesticides, fertilisers and other chemicals have been used, not the choice of an unknown commercial food producer. And it’s surprising how much fruit and vegetables you can produce, even from a small piece of land.
Attraction 3 - Keeping Livestock, Horses And Other Animals
Being able to keep animals is many peoples dream. Having some land in the country, makes it a real possibility.
Keeping chickens is getting popular. A few free-range hens provide a constant supply of high quality fresh eggs, for example. But having a few acres, makes the keeping of larger livestock like sheep and pigs, perfectly possible.
Then there are horses, of course. If there are stables on the land, this is very attractive to people who love horses. It can easily become an absorbing activity and hobby.
Attraction 4 - Lifestyle Benefits From Living On Your Land
If your land also has a farmhouse, or other type of dwelling, or perhaps just permission to station a caravan or mobile home, you can actually live on your land in the country.
This opens up many lifestyle opportunities for a “back to nature”, more relaxed life. Living on a small farm, well outside of built-up areas, is an enjoyable experience for many.
Many small farms (and some not so small farms!), are now being bought up by so-called “lifestyle farmers” and “hobby farmers”.
Attraction 5 - Increase Self-Sufficiency, Reduce Your Dependency
Some land gives the possibility of greater self-sufficiency, that is reduced dependence on on outside suppliers and reduced cost of bought-in goods and services.
You could generate some of your own energy to reduce energy bills. Generating electricity from solar panels or from small wind-powered turbines, is perfectly possible nowadays. If you generate more than you need, you can even sell the excess to the utility supply companies.
If you have woodland or even just a number of trees on your land, you also have a ready supply of firewood for heating and cooking.
With some land, you can also produce your own food, as mentioned before, reducing dependency on food shops and suppliers.
Attraction 6 - There May Be Valuable Development Potential
Land can be developed in many ways to add value to it. This is especially true if there are existing buildings.
Even poor quality buildings can often be used for stabling, animal shelter or storage. Better buildings may be converted and used for office or industrial purposes - many areas encourage rural business and new employment.
And if there is the possibility of residential development of new dwellings, this is often the most lucrative way of adding value.
Attraction 7 - Government Grants, Tax Breaks And Relief Benefits
Of course it depends on the jurisdiction and you need to check the details carefully (advised by professionals), but some areas do have favourable policies towards agriculture and rural business.
There may be grants available to landowners, to help them develop new uses for their land and employ local people.
There may also be favourable taxation treatments applying to, for example, annual income generated or capital gains crystallised on the sale or transfer of land and property.
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