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Farmland can be good investment, but beware!

Author: Lakshmi Sowjanya
by Lakshmi Sowjanya
Posted: Feb 29, 2020

Investing in a farmland is truly an asset!

However, you may later discover that there are many restrictions and challenges to be faced as you try to develop or sell the land.

Few of such restrictions include:

1. No instant cash flow

Now, although you wouldn’t have a mortgage to make payments on, you would likely have other expenses, such as property taxes, the cost of improvements, and sometimes even association fees. Without rental income coming in, you may need to get creative in order to cover the expenses. For example, you could sell parcels of the land or the rights to it (i.e. mineral rights, gaming rights, etc.), or you could find another use for the land in the meantime.

2. Legal hassles

How the property is zoned locally (i.e. residential, commercial, etc.) can determine what you are able to do with the property as well. The timeline for getting your project approved by the township can also vary. How many lots you’re allowed to develop is another big question, which dictates how much you can make through subdividing.

3. Physical Hurdles

Sometimes the property itself can have issues. For example, I would avoid flat lots due to water runoff issues. Likewise, with mountain property, steeply graded land is harder to build on. Also, I would need to be clear on the situation with septic, sewer, water, and road access. Besides township restrictions and any issues with the property itself, the success of your deal can also be partially dictated by market conditions.

4. Market plays a direct impact

Let’s say you didn’t build on the land, but you did improve it somehow post-purchase (i.e. subdividing, roads, sewer, etc.) and/or the area appreciated. You may still have a great deal on your hands. If you purchase in a down market (i.e. buyer’s market) with the intention to build or improve the property and then sell, the big question is can you afford to hold the property while waiting for the market to turn around? Market time depends on the area as well. I can’t stress enough how critical it is not only to do your due diligence but also to understand the development costs and the demand for and market value of your completed project.

Hence to overcome all your legal, physical and other hurdles; Pahani has the best agricultural land for sale in Andhra pradesh. Also invest now in the best rates and have great incomes on lands for sale in vijaywada.

Is Agriculture Land a good investment or is it risky for a layperson Most of the Indian citizens’ dream of investing while they are earning and earn more to enjoy their life. Agriculture Land for Sale in Andhra Pradesh can be good investment options for the people who have surplus income. Owning agriculture land has its advantages where income earned from it is exempted from taxation. But prospective investors have to keep an eye and pay due diligence about the rules and procedures about the land they are planning to purchase. There should be a plan of action on how one manages and maintain the land. Otherwise, there will be an infringement problem. Hence before buying the land, there should be a thorough understanding of Land for Sale in Vijayawada. Land documents Carefully go through the following land documents before buying agricultural lands

  • Know your expectations and returns from owning that piece of agricultural lands? Make sure that the title deed is clear? Know if there are any previous sellers? Check encumbrance certificate? Know the rules and procedures concerning the Agriculture Land for Sale in Vijayawada

Smart farming

You can invest in Land for Sale in Vijayawada and go for smart farming with advanced technologies and processes. It is generally carried on with the IoT, Precision equipment, geo-positioning systems, Big data, robotics, drones, UAVs etc. This modern-day technology enhances the quantity and quality of agricultural products. Similar is the case with farmers, they can monitor and maintain the nutrition of plants effectively with fertilizers and pesticides. This all being said you need to know the advantages and disadvantages of investing in agricultural lands

#agriculturelandforsaleinvijayawada #landforsaleinvijayawada #agriculturelandforsaleinandhra pradesh

Website:https://pahani.com/properties/

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Author: Lakshmi Sowjanya

Lakshmi Sowjanya

Member since: Jul 17, 2019
Published articles: 5

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