The Glitter Of Investing In Real Estate Farming Vs. Traditional Investment

By Author: goldengroves
Total Articles: 2
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Whatever you invest in real estate can never go wrong – at least this is what happens in a country like India where land availability is in short supply and population is growing. If you take a look at real estate price history, you will find that realty price has been consistently growing by leaps and bounds. There are reasons to it and the best reason is the people. People in India have considered real estate a valuable asset and is much preferred even more than investing in gold. Real estate farming, though a relatively new concept is much valued investment and this is partly in keeping with the tradition and culture of Indians.
People in India consider real estate farming as highly secure. This is especially true if the investor is in his late forties or farther. Personally we think that real estate farming along with other investment in realty is much more secure and rewarding than in other venues.
Here are some comparisons.
Real Estate Farming vs. Investment in Company Stock
Investing your money in company stock (equity) has its own share of risks because equity prices can go up or down and ...
... your wealth is not real. It depends on market conditions and if the industry or sector in which you are investing goes through poor market demands or the government imposes additional taxes on profits, your stock prices can go down drastically.
The risk goes up dramatically, in industries that dependent on exports or fossil fuel energy. This is may be good for speculators who will want to make money overnight, but not good enough if you want fail-proof security for your family, and if you are past your prime age.
Real estate farming has none of these risks attached to it. Real estate farming emphasizes on security for investors and is based on long-term returns. It is good for investors across all age groups, retirees and those who are not willing to risk their life-time earnings. Unlike in company stock investment there is no need to watch for daily price fluctuation. It is generally less stressful on the whole.
Real Estate Farming vs. Bullion
Bullion is about precious metals and typically it can be gold, silver or platinum. The problem with precious metals is that prices go up or down at short notice. The fluctuation is wild and prices change almost by the hour. If you park your hard-earned money in it, you will need to constantly keep an eye on prices, political situation and government policies almost on a daily basis. You will be under intense pressure to order selling or buying on a regular basis which almost means you will be speculating on prices. No doubt you will make (or loose) enormous money, but at the cost of peace of mind. It may be a sound investment for those who have a lot of money to risk it. This is not particularly suited to people who are investing their money got from retirement or inheritance.
Storing precious metals like gold, silver or platinum is a risky affair. You need to have a secure environment and there is also the possibility of losing it to burglary unless you are willing to store it in a safety locker for which you will have to pay through your nose.
Real estate farming is altogether a different ball game – prices don’t fluctuate wildly and more importantly they keep on growing year after year. It is ideally suited for people who are averse to risk taking and don’t have the inclination to order buying or selling on a regular basis. The subtle thing in favour of real estate farming is that it keeps you giving good returns around the year and this can go up in some years if there is a bountiful weather. The lesson to understand is that return is steady and in reasonable amounts.
Real Estate Farming vs. Cash in Banks
We will definitely don’t want to say that keeping cash in banking accounts is a bad investment, but with inflation which is a regular feature in our country, the value of your asset can erode rapidly. The best of cash investment hardly gives its investors 8% returns in a year and add to this inflation and taxes and your money’s purchasing power can go down over the years.
With real estate farming things are vastly different though there isn’t as much liquidity as cash asset. But, you will be compensated for the liquidity by price appreciation and safety of your asset. The advantage of real estate farming is that you can have cake and eat it too. Doesn’t that sound great?
Real estate farming is for everyone – you don’t have to be an experienced farmer or someone with tons of money to invest. Realty companies like Golden Groves have made it possible for common people to own their farms and even a mechanism to keep it running without the investors’ active involvement. Is that not like killing two birds with one shot?