Alternative Investments (3): Real Estate (Farmland)

We are talking here about farmland, as an alternative real estate investment. Traditionally, it has been very difficult to invest in farmland. But more recently, there are some good opportunities as a few companies have appeared that make farmland investing much easier.
“>AcreTrader pays out 3-5% income for low-risk properties and charges a flat 0.75% fee on the farm’s total value, usually deducted from the income.

If you were to invest $10,000 in farmland in 1990, you would have nearly $200,000 in value now. A very good return for a low-risk, high-reward investment. Farmland returns are relatively stable. It is less volatile than most stocks.

Another company similar is FarmTogether. The main difference here is, you must be an accredited investor, with a minimum of $10,000-$50,000 depending on the deal on offer.

Sven Franssen