Tuesday, March 20, 2012

Farmland a safe haven from today's economic situation

In today's economic climate of volatile stock markets, negative returns from bonds and term deposits plus the uncertainty surrounding the economies of most western countries, Farmland stands out as an asset class that can not only be a safe haven but is likely to provide a return that at least keeps up with inflation and preserves your capital.

For example our Australian Farmland investment, has a projected annual return of 8% plus the opportunity for capital gain. Australian Farmland has averaged greater than 10% annual increase prior to 2010 (see here). This investment is designed for retail investors with low minimum investment.

To be sure of the safety of the capital you invest, it helps if you can invest at prices that are a good discount to land values in similar countries, here is where Australian land is the pick of the bunch. At an average $1600 to $1700 USD/ ha Australian Farmland is a bargain compared to the likes of the UK and even New Zealand.

Driven by increasing Global food demand, limited availability of arable land and situated within a politically stable country, investing in Australian Farmland is arguably one of the safest places to store your wealth.

For me the icing on the cake, with this investment, is that economic drivers like population demographics are pretty much beyond the meddling of local politicians printing and spending themselves to political success!!

To have a look at our opportunity follow the link here.