2021-06-04
Investing in farmland, a way to secure your money in times of crisis
Many people wonder what the purpose of investing in farmland is and what the point is in times of crisis. First of all, it is important to understand what farmland is. It is land that is reserved solely for agricultural purposes. These lands have by nature a rich soil which attracts many people.
![farmland farmland](https://www.barnes-mauritius.com/rails/active_storage/representations/redirect/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBb2RLIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--7a48a113140c4536cb96e855e04ee8b6c4a07e32/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJYW5CbkJqb0dSVlE2Q25OaGRtVnlld1k2REhGMVlXeHBkSGxwTFE9PSIsImV4cCI6bnVsbCwicHVyIjoidmFyaWF0aW9uIn19--219e57ae91f9183b6c38d81e8a46ec8a90285f73/Picture-83649833-1.jpg)
In practice, in no case is it possible to program a construction on a land classified as 'agricultural'. However, there are exemptions allowing in some cases to build a house on an agricultural land (if one can justify a forestry activity for example...)
Diversification of one's assets
During a period of crisis, economic or health, any investor knows that it is more prudent to diversify its investments not to bet everything on a single sector. This is too risky in general, and even more so in times of crisis! Agricultural land is a great alternative and allows for an interesting diversification of assets.
An interesting capital gain
In most cases, the profitability on an agricultural land is very interesting and a large majority of investors know it. Especially if during your acquisition period, the land becomes buildable and has an ideal location, the value of the land will increase significantly.
A rental investment
It is also interesting to invest in agricultural land with the aim of receiving a rent. The principle is simple, the same as in traditional real estate, an owner and a tenant. The exception is that your tenants will be the farmers of the land.
Investing in a commodity
As we have seen above, agricultural land has many riches. The more time passes, the more raw materials become coveted products with a value that increases over the years. What will happen in ten or twenty years when the world's population will have increased significantly? We are currently observing significant inflation in the price of raw materials and this will continue to increase. All this will have an impact on agricultural land. They will become very coveted and their acquisition price will be increasingly high.
The acquisition of agricultural land is subject to certain criteria
As you will have understood, today in Mauritius, it is not possible to acquire an agricultural land in the same way as one could acquire an apartment or a house. You must have a real project related to nature or an agricultural activity.
![farmland](https://multibarnes-mauritius.studio-hb.fr/rails/active_storage/blobs/redirect/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBb2xLIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--83933295df7000472ea44d6a460973d414919869/image.png)
Agricultural land therefore seems to be a very interesting way to diversify your investment portfolio. Moreover, these lands are becoming more and more rare. It would therefore be wise to ask yourself the right questions and to contact our BARNES consultants in Mauritius and our five BARNES agencies in Mauritius to obtain information and possibly consider an investment.
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