Agriculture is an important aspect of a thriving economy. Food is a primary concern of humans and agricultural lands provide food for nations. While agriculture is a safe capital intensive sector, it has the same set of problems like other realty in terms of unsold inventory. Due to this, more and more agricultural lands are being converted into residential areas. To address this problem and the issue of unsold inventory, astro strategist has a wholesome solution drawn from years of corporate, business and astrological expertise.
Agriculture is a major industry in itself. Of course changing climate conditions and changing quality of land has impacted the number of people being involved in agriculture these days. However, the situation is better of late, with the young and middle-aged population looking to invest in farm lands as a means of investment and relaxation.
Yes, many look at maintaining agricultural land to be soothing. They also feel satisfied as they feel they are giving back to the society in terms of produce and keeping the soil replenished. There are many ways in which the soil is kept ready, right from producing bio-waste as an alternative to fertilisers and pesticides to growing earthworms for keeping it porous.
The entire concept of living in tandem with the environment is encouraging more and more people to buy bits and pieces of land for agriculture. Of course, not all people buy enormous tracts of land, but there are long-tail farmers who are coming up with innovative ways of farming and maintaining farm lands.
From what was a fad, it turned into a cause and more and more people with a green thumb are joining this cause.
If one were to look at the definition of agriculture, then it is all about raising crops, animals and plants. It offers a diverse portfolio and the benefits include the same benefits of real estate investments. Like in all forms of realty, an agricultural investor can buy, sell and lease agricultural property. Apart from owning the land, agricultural land also doubles up as produce-generating investment, where crops, plants and cattle can later be sold in farmers’ markets or to big corporate. Since the new-age people want to know where their food comes from and how safe it is for consumption, this going back to farming can be a win-win situation for both land owners and consumers.
Like all forms of land or real estate, agricultural land also falls under realty and can be classified under various heads
1) Farms: A farm is a piece of land that is primarily meant for agricultural uses, where food is produced, plants and livestock are raised.
2) Ranches: A farm and ranch are more or less similar, except that a ranch serves the purpose of raising livestock like cattle, sheep, poultry, etc.
3) Timberland: This is real estate where forests are suitable for growing timber. An investor can invest in various ways in timberland, such as timber exchange traded funds, or ETFs and REITS or real estate investment trusts that contain timber related products. In some cases, the investor can buy timberland and sell off the timber and plant the trees once again. It does take time, but it is worth the investment.
4) Orchards: This type or real property is used to grow fruit tress such as apples, oranges, grapes and the likes. The produce can be sold for further investment and upkeep of the farm.
Often buyers invest in tier-2 and tier-3 cities and rural areas, as it seems to be the best option in the prevalent conditions. While investing in agricultural lands was always considered to be a good investment, the craze has increased now due to slump in urban realty markets.
Also investing in projects that are close to upcoming infrastructure projects or special economic zones or a highway will surely rake in profits. This means a very return on investment or ROI. Experts maintain that such pieces of land will fetch high returns in future.
This is the plus side of investment in agricultural land, but there are challenges that mar the high hopes of investors. Maybe not all investors might face similar problems, but most of them end up with a variety of problems that can lead to unsold inventory.
Some reasons for unsold inventory in agricultural realty
■ A person may not be a farmer or have any intentions of becoming one, due to a variety of reasons. However, he or she inherits land from ancestors and this leads to the land lying fallow as the owner does not have the knowledge to develop the property.
■ Conversion is a problem. One cannot convert agricultural land into residential or commercial property. This can lead to agricultural lands becoming a liability.
■ Land ceiling act: A state in India might have agricultural land. But one is restricted to invest in a state due to land ceiling act. This also impacts the demand-supply ratio.
■ In India, NRIs cannot invest in agricultural lands. This could lead to unsold inventory.
■ Different laws in different states. Investing in agricultural land is not always easy. One has to know the local laws and jargon to buy property and develop it. Knowing the value of land and converting into global market rates is also crucial, failing which land remains unsold.
■ Investing in agricultural land is capital intensive. Returns are not as good as one expects. Usually, those flush with funds and high net-worth individuals can afford such investments. The small patches of land that urban farmers are buying can help them produce organic products and free range meat, but it may not be fetching in the long run.
How astro strategist Hirav Shah can provide a road map with regards to unsold property
Any investment is made with profits in mind. Of course, in agricultural realty, one cannot expect returns in the short term. Usually, agricultural real estate is all about investing for the long term. While agriculture is on a revival path, thanks to young and middle-aged urban people taking up farming in a big way, there are no guarantees in this sector just like all real estate investments.
Agricultural investment is a safe investment, but it has its own set of problems in the form of unsold inventory. Various government laws and by-laws, quality of land and distance from urban pockets determine the market value of agricultural lands.
Overuse of chemicals and fertilisers leads to land lying fallow and this reduces the costs of farm lands. Similarly, differing laws from one state to other state dissuade buyers from investing in far off places.
In states of Gujarat and Karnataka in India, the local governments have made the provision that agricultural land can be converted into residential plots. This shows how agricultural lands’ value has diminished in today’s world.
Astro strategist Hirav Shah looks into such problems and finds deep-rooted problems to provide customised solutions to his clients. Usually, agricultural lands are owned by people with deep pockets or high passion levels. Irrespective of how big or small an agricultural investor is, Hirav Shah has specific solutions for all.
Unsold inventory is a huge problem in real estate business and this problem haunts agricultural lands too.
Like in all industries and sectors, the socio-economic and political conditions result in unsold inventory. To address the problem, Hirav Shah deep dives into business strategies and corporate know-how to chalk out a plan of action for his clients. The best part is that he suggests a timeline for them to decide when they can up their act or lie low.
Here, a mention has to be made of his astrological solutions that give a precise and clear-cut guideline for a client. But astro strategist Hirav Shah is no novice in the market. He recognises that not everyone is comfortable with astrological jargon. So, Real Estate Astrologer Hirav Shah has developed a system where he combines his knowledge of astrology, the information from a client’s birth chart, street-smart business skills and corporate expertise to provide an all encompassing solution.