Farmland prices have already gone up on account of rising food costs. However, investors say it is still undervalued as the long term fundamentals for agri-business look good.
Is it another dotcom bubble in the making? Investor Jim Rogers seems to think otherwise.
I live in Toronto. However, I do not like to be chained to my investment and would like to travel wherever my work takes me. In other words, I am lookiing for mobility for personal and work related reasons. Is it possible to make investments in farmland without losing your ability to move?
Are there any "investor clubs" that specialize in investments in farms? Personally I don't see myself tilling the land as I know nothing about farming. I am however vary of leasing the land. Property disputes, while not as bad as in india, can get nasty in Canada.
What is your take on investing in farmland in Canada? Can somebody give me the ball park figure for a small piece of land near Toronto? Just trying to figure out the economics behind such investments.
Thanks in advance.
Farmland is hard to find in gta , but in barrie and further north u could get a few acres for 90K, but a farm is worthless if u cant maintain and run it..
And yes as the other poster said it is a lot of work..
Crops are Dependant on weather which is a risk i dont think most investors like
I think Oil and Energy is still the sector to be in rather than farming which is a risky business..
today food prices are directly related to Oil prices mostly because Oil is the basic means of transportation and natural gas is one of the inputs for generating fertilizer.
Quote:
Originally posted by elmer fudd
Farmland prices have already gone up on account of rising food costs. However, investors say it is still undervalued as the long term fundamentals for agri-business look good.
Is it another dotcom bubble in the making? Investor Jim Rogers seems to think otherwise.
I live in Toronto. However, I do not like to be chained to my investment and would like to travel wherever my work takes me. In other words, I am lookiing for mobility for personal and work related reasons. Is it possible to make investments in farmland without losing your ability to move?
Are there any "investor clubs" that specialize in investments in farms? Personally I don't see myself tilling the land as I know nothing about farming. I am however vary of leasing the land. Property disputes, while not as bad as in india, can get nasty in Canada.
What is your take on investing in farmland in Canada? Can somebody give me the ball park figure for a small piece of land near Toronto? Just trying to figure out the economics behind such investments.
Thanks in advance.
Hi,
I completely agree with the above information. However, I am sure you have heard about the sub-prime crisis, and land is getting cheaper but not in the North-of the Border, because Canada wasnt affected as much as the United States. Real-estate companies grow, usually when the housing market picks up after a recession due to rising interest rates.
If you are looking for a real-estate investment opportunity, I have an offer for you. Recently, I have been able to gather 5+ professional workers and a a class real-estate agent, who are willing to put in sometime and commitment to investment opportunities and make ideas, and we would love to hear your insights as well. We have been able to get deals on prime real-estate in United States, and we are looking forward to investing as a private company. Our goal by the end of 5 years is to generate recurring income, through the lease and rental of properties.
We are on the verge of sanctioning a business plan, and would be delighted to hear your opinions and ideas. Please let me know if this sounds interesting to you, and you can send me an email @
Regards,
Rishav
Quote:Sounds like an awful lot of trouble.
Originally posted by rdassarm
We have been able to get deals on prime real-estate in United States, and we are looking forward to investing as a private company. Our goal by the end of 5 years is to generate recurring income, through the lease and rental of properties.
Why not just buy REIT units?
There are many REITs for each sub-section of the sector, like commercial, retail, industrial, residential, etc.
Both in the US and in Canada.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
Quote:Sounds like an awful lot of trouble.
Originally posted by rdassarm
We have been able to get deals on prime real-estate in United States, and we are looking forward to investing as a private company. Our goal by the end of 5 years is to generate recurring income, through the lease and rental of properties.
Why not just buy REIT units?
There are many REITs for each sub-section of the sector, like commercial, retail, industrial, residential, etc.
Both in the US and in Canada.
I am no expert in investment ideas. In fact , I admit I am novice and hence my take may not be accurate. I think REIT, while providing a good yield is prone to price collapse, especially if interest rates go up and thereby discounted cash flow would be much smaller. I would appreciate if one can provide me with good REIT companies with less than 10 P/E ratio.
Quote:The exact same factors would apply to investment properties that you buy on your own.
Originally posted by Nightmare
I think REIT, while providing a good yield is prone to price collapse, especially if interest rates go up and thereby discounted cash flow would be much smaller.
As we all know, RE prices in the US have collapsed > 60% and continue to do so.
That affects individual as well as institutional investors.
Similarly, rising interest rates affect everybody.
The advantage that REITs have is one of scale, better negotiation capability and rolling/tiered lease rents.
Also, the fact that interest rate will rise sooner or later has been well known for quite some time and I'd assume REITs have taken corrective actions, like locking in fixed rates.
Quote:For REITs, it's not the P/E so much as the P/AFFO ration that matters.
I would appreciate if one can provide me with good REIT companies with less than 10 P/E ratio.
Also, 10 is not a good number.
They need to cover their payouts while keeping payout ratio (as a % of AFFO) within comfortable limits.
I'm not saying that REITs don't have risks...indeed they do, and there have been cases of REIT managements running ponzi-like schemes and or "creative" accounting schemes.
So you have to do your investigation.
Or you can buy a REIT ETF, such as VNQ and XRE, and not have to go through this trouble.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: Brampton, Ont, Canada
Posted on: 19-06-11 23:12:32
Greenhouse or Winery is a good investment.
We have worked on it and have gathered some knowledge as well as we have couple of project available.
Let me know if you guys are interested to know. We can always work in group since its required big cash
-----------------------------------------------------------------
'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
