Farmland remains a coveted asset choice for many but investors are making the wrong choices and need to get more creative.
Farmland has been high on the agenda of investors in recent months, primarily because of the record-breaking values.
And as the global population increases, and so demand for agricultural crops, more investors want to get in now and earn the big returns and appreciation over time.
But entry prices and lack of knowledge has proved the downfall for most. ““What we have seen in recent years is an extreme demand to purchase land, regardless of the quality and in many cases multiple offers with farms selling very quickly,” says Kent Willmore, president of AGInvest Properties Canada.
According to the Food and Agricultural Organization of the United Nations (FAO), the global population is expected to reach 9.1 billion by 2050. To accommodate this surge, food production in developing countries need to rise by almost 70 per cent.
“With so much attention on land, it is becoming extremely difficult for both farmers and investors to privately source land at real market value,” adds Willmore.
AgInvest Properties are tapping into the needs of such potential buyers through its two investment vehicles.
***Do you want to learn more about these farmland investment options? In the September issue of Canadian Real Estate Wealth, we outline the arguments for investing in this asset class and show how Canadian investors are doing it without breaking the bank. The issue is currently on the newsstands. You can also subscribe here today to avail of a special offer.
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