Agricultural Land: A Smart Investment Option Beyond Traditional Real Estate
Ensure the property is dispute-free and explore the benefits of investing in agricultural land, including potential tax benefits and opportunities for tourism and farming.
Agricultural LandReal Estate InvestmentRural TourismTax BenefitsLongterm InvestmentReal EstateSep 28, 2024
In the realm of real estate, the primary investment options generally fall into two categories residential and commercial properties. However, if you already own a home and are looking for investment opportunities in real estate, and if your budget is substantial, you might consider commercial properties or agricultural land.
In recent years, the trend of purchasing agricultural land has gained momentum. The prices of land have been steadily increasing, and agricultural land available in tier-two and tier-three cities can be considered as an investment option.
Ensure the Property is Dispute-Free
The first rule of investing in the real estate sector is to ensure that the transaction is free of any ownership disputes. It’s possible that the agricultural land you are considering was inherited by the seller from their ancestors. In rural areas, Wills are not commonly made, and property is automatically transferred from one generation to the next.
To avoid any future claims on the property, you can publish an advertisement in local newspapers stating that you are about to purchase the land and are inviting anyone with objections to the deal to contact you within a specified period. Once you have made the down payment, don’t delay in getting the property registered in your name and taking possession of it.
If You Plan to Build a Farmhouse
If you plan to purchase agricultural land with the intention of building a small house on it, it’s essential to check with the tehsil and planning offices beforehand to see if any construction is allowed on that land.
Use It for Tourism
There is a growing trend among city dwellers to spend some time in a rural environment, away from the hustle and bustle of urban life. You could develop your agricultural land into a rural tourism destination, incorporating activities like agritourism or homestead farming.
Other Options
Investing in agricultural land doesn’t necessarily mean you have to engage in traditional farming. You could use the land for flower and fruit farming, or plant medicinal plants like basil and aloe vera.
Tax Benefits
Income from agricultural activities and gains from the sale of agricultural land are generally tax-free. This makes the financial returns from such investments even more attractive.
Traditionally, the upper-middle or middle class has limited its investments to savings, stock market, or flats in the real estate sector. However, for long-term investments, agricultural land can be an excellent option.
Information
ORAM Developments is a real estate development company that provides expert advice on investing in agricultural land.
ORAM Developments is a leading real estate development company with expertise in agricultural land investments. Their CMD, Pradeep Mishra, provides valuable insights on the benefits and precautions of investing in agricultural land.
Frequently Asked Questions
What are the benefits of investing in agricultural land?
Agricultural land can provide a steady income through farming, tourism, and other activities, and also offers potential tax benefits.
How do I ensure that the property is dispute-free?
You can check with the tehsil office to verify the ownership of the land, and publish an advertisement in local newspapers to invite any objections.
Can I build a farmhouse on agricultural land?
It depends on the zoning regulations of the area. You should check with the tehsil and planning offices beforehand to see if any construction is allowed.
What are the tax benefits of investing in agricultural land?
Income from agricultural activities and gains from the sale of agricultural land are generally tax-free.
Is investing in agricultural land a good option for long-term investment?
Yes, agricultural land can be an excellent option for long-term investment, providing a steady income and potential tax benefits.
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