Does any one have any background in farm land as an investment? From the little research I have done it seems to be worth looking into. I am focusing on vacant land, meaning no buildings like a house, barn, or storage shed. I am also focused on farmable landland, meaning less than 10% is bush, pond, or creeks.
When compared to a multi unit rental property of the same purchase price there are some obvious differences in the cash flows. It is this difference that is making it hard to choose the better path. A rental unit has a better and higher cash flow, but it also comes with more "issues". Farm land is simpler and easier to operate from the landlord position and might be worth sacraficing some income to save some headache.
Besides income potential there is capital appreciation. It is my opinion that farm land appreciates better than a rental unit. I have some data to back this opinion up but not enough to make a conclusion. Financial data aside farmable land today will still be farmable land in 20 years, a rental property today will need a lot of maintenance, and a well run municipality (city) to be the same property that it is today.
Any and all comments and questions are welcome.
When compared to a multi unit rental property of the same purchase price there are some obvious differences in the cash flows. It is this difference that is making it hard to choose the better path. A rental unit has a better and higher cash flow, but it also comes with more "issues". Farm land is simpler and easier to operate from the landlord position and might be worth sacraficing some income to save some headache.
Besides income potential there is capital appreciation. It is my opinion that farm land appreciates better than a rental unit. I have some data to back this opinion up but not enough to make a conclusion. Financial data aside farmable land today will still be farmable land in 20 years, a rental property today will need a lot of maintenance, and a well run municipality (city) to be the same property that it is today.
Any and all comments and questions are welcome.