August 17, 2020
Most of us agree that while earning money is hard, investing it wisely is harder. Traditionally, we in India have gone with two time-tested options – gold and land. In gold we trust – for hundreds of years this has been our favourite investment, one that is credited with protecting families and honour in times of distress. However, from today’s market-driven economy perspective, this thinking is jaded.
Look at it this way. Gold sits idle and does not produce anything or create any value. The value has to increase only when someone else is willing to pay more for it – which in itself is speculative. Unlike bonds or bank deposits, your money when invested in gold, does not contribute to any kind of economic growth. And for all the optimism on its growth potential, gold has just returned 8.3%* in the last 10 years.
Now let’s look at the other favourite investment option – real estate. Firstly, land by itself cannot generate income. We can profit from it after it appreciates in value and is sold subsequently, which could happen only when there is an increase in demand for land in the region. This happened in cities like Bengaluru which experienced exponential growth from the early 1990s to the late 2010s. So people invested in plots/ land and experienced a value increase driven by demand and growth.
Next, if you wish to derive actual returns from real estate, then you have to invest in construction – residential/ commercial – risky considering the demand is dependent on the economy.
While pockets of land in urban areas have been attracting attention from buyers for long, the current oversupply of properties, congestion, cost of living in cities and other associated issues has retarded value appreciation. The real estate market in Tier 1 cities including Bengaluru is stagnated and not experiencing value growth as in the past. The demand for commercial properties has decreased and the current COVID 2019 situation is bound to redefine the workplace segment going forward. Work-from-home would definitely be the new norm with more and more companies at least in the knowledge space, opting for it.
Farmland – the way ahead
So, the question on the minds of investors would definitely be, ‘What next?’ The answer is investment in farmland. Although farmland is part of the real estate marketplace, it has its own unique set of characteristics. Returns on farmland have constantly exceeded those compared with other assets such as commercial real estate, gold, stocks, bonds and more. More importantly, farmlands have the potential to influence us as a community in more ways than one – socially, environmentally and economically.
Short term & Long-term wealth creation – a win-win either way
- Farmland is an excellent short and long term wealth creation option with a propensity to appreciate in value over time. When well maintained, the property yields periodic returns on the produce while the investment is secure and profitable considering there is bound to be a long term value gain.
- One of the most positive features of open spaces and farmlands is the natural benefits they provide. Apart from producing food and timber, farmlands provide fresh oxygen, nurture precious flora and fauna and contribute significantly to the environment.
- Unlike mining for example, which depletes resources, a rightly managed farmland is a renewable resource and stays productive in perpetuity.
The need for expertise – Our edge at Hosachiguru
While the concept of farmland is attractive from both a short-term and long-term perspective, the biggest hindrance to those who wish to venture is largely the lack of expertise in managing one. It takes specialized knowledge and time to ensure the crop is irrigated and secure, the growth is healthy, and things are taken care of.
Now, the good news. If you are really passionate about owning farmland, being a part of nature, wanting to do your bit for the environment, wanting to introduce your family/ children to the joys of nature and more… we at Hosachiguru can help you with it. We are a team of dedicated professionals with years of experience in setting up and managing farmlands.
Hosachiguru provides good-quality farmland with good water and soil management techniques to grow timber, hardwood, fruits and other location-specific produce that can help you generate passive income. Our farm experts will decide on the best possible crop based on the soil and water conditions of the property. Additionally, when you buy Hosachiguru farmland, you get to enjoy the added benefit of using your project location as a weekend/retirement home.
Let’s do our bit for the planet together – you and Hosachiguru
Sustaining the environment and leading a cleaner, greener life is now much more than an option. In fact, it is our responsibility. While the planet gasps for breath and initiatives are on globally to clean and sustain the environment, this is a great opportunity for us to create a greener environment and community while profiting from it. Wood is money and we help you cultivate the right kind of wood in your plot. In fact, it takes just 10 trees to produce enough oxygen to offset your carbon footprint. We can grow a lot more in your plot so your contribution could be on the plus side!
As a farmland management company, we have an undying passion for farming and engage in various conservation practices that help preserve the environment – collecting water runoff, planting cover crops, appropriate tillage, and more. We use precision farming techniques in managing the farmland such as using non-chemical fertilizers at the right time to effective nutrient management.
We are driven by love for nature and wish to join hands with those who look to create a positive impact on the environment. We could work together to make the world a green place and create a win-win for all!
Source: Economic times – Oct 2019
