Purchasing Farm land as an investment

[Brian Plajer]

Hello,

Does anyone purchase far land as an investment? I keep hearing about China buying US farms and  Bill Gates and other billion/millionaires  purchase farm land. I'm wondering if anyone on here does and what's that play in farmland? 

thanks

[Cole Schlack]

Quote from @Brian Plajer:

Hello,

Does anyone purchase far land as an investment? I keep hearing about China buying US farms and  Bill Gates and other billion/millionaires  purchase farm land. I'm wondering if anyone on here does and what's that play in farmland? 

thanks

I love buying farm land, but not in the east or Midwest.  It is a long term play and you need cash but appreciation returns are way higher when you make the right buy. Example-23 acre Avocado farm in San Diego county.  Purchase in 2020 for $1.3m with house.  House rents for $4,000 per month Avocados range from $100,000 to $200,000 per year.  In 5-10 years I will subdivide into 6 lots, Sell off the house for $1m and remaining lots for around $500,000+ each.   Sounds easy, its not ,It was a special property and in the right location.   I am focused on Hawaii now, massive amounts of under-utilized farm land that can grow anything with crazy low property taxes.