Saturday, August 17, 2013

Farmland is a Better Investment

Farm Vs. Residential or Commercial


Some of you may be thinking, "This is all good information but I already have plenty of investments in commercial or residential.  What makes farmland a better investment?"  Let me break that down for you.

What are the down sides to investing in residential or commercial properties?  

Renters usually downgrade the property.  The property requires cash maintenance.  They are physical structures so they will decline in value.  Property taxes can be expensive.  You need liability insurance and that can be expensive.  And you have to collect monthly checks and that can be chore.  Who wants to do all that?

What makes farmland better?  

Renters will improve the property.  The farmers have a stake in the lands future.  The farmer will improve the property.  Land always rises in price thus it will physically improve over time.  Agriculture property taxes are low by law.  Liability insurance is very low too.  Finally, rent is collected once or twice a year.  No badgering and hunting down renters once a month.

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