The Pros and Cons of Buying Agricultural Land
Owing to the flump in urban reality and the promise for long-term returns, there is a number of urban investors are investing in agricultural land. For those who want to buy agricultural land, we are examining the Advantages and risks.
Investors in India are now searching for innovative ideas to earn returns from their investments, with growing purchasing owner. One of the ways is saturated in agricultural land. While some of the investors retain such land as an asset. Who supports the growing market of animate fruits and vegetables, to supplement their income there is a section of investors. If farm investment is a safe option for parking one’s funds as the return on investment is usually more than the other investments and also lends safety to investors’ money, a number of experts have agreed after pandemic COVID-19 especially.
Now urban investors are looking at the potential of agricultural land returns in the areas of big cities and state capitals.
In comparison to urban land, investors expect some healthy returns in terms of resale value, while the land is inexpensive.
For such land parcels, there is an increase owing to the scarcity and high price of land in cities, buying it to earn profits on resale or use it for cultivation with urban investors.
On agricultural land Potential ROI
If there is a possibility of upcoming infrastructure projects in emerging and developing areas The returns are higher, such as for example special highway or economic zone, if some government scheme is to be launched and the land is located in an area. It is good or in the master plan of the region it is included in future there are Chances of that such a piece of land will fetch a higher value, he adds.
Merits of investing in agricultural land
If it is in an area where the government has planned some infrastructure project in the near future, an agricultural land plot can green long terms returns.
The compensation is higher for rural land than that for urban land in the case of acquisition by the government. For those areas where the city is expanding the number of state governments is also planning a land pooling policy. You will get guaranteed regular returns from the pool if you become an owner under the land pooling policy.
Demerits of buying agricultural land
Everyone cannot buy: you need to be a farmer to own agricultural land in India, as per the law. Some have eased this prerequisite, while most states have such a ruling. Some have eased this prerequisite, you may also get receive such a land.
Conversion may be difficult: a fertile piece of agricultural land into a residential one you cannot convert. For conversion, the land should be dry land.
Not everyone can buy: those who cannot buy agricultural land in India are NRIs, for instance.
Terminology is a must and knowledge of local land laws: if the buyer is not well aware of the land laws and the local terminologies used in the course of the transaction, buying agricultural land could be extremely difficult. The land is a state subject, it will be disadvantageous, considering the legalities involved in the process, laws are different in each state and not having a thorough knowledge.
