How to make a rustic farm profitable
How to make a rustic farm profitable
Why invest in a rustic property? Investments are a decision that involves a high degree of risk. For this reason, every time we want to make an investment, we expose ourselves to many doubts that stop us from taking the leap. This is because the future of an investment is not always so clear in terms of its profitability. So why should we venture to invest in a country estate? Usury does not affect rural land in any way: its price is maintained over time and your investment is guaranteed. This provides security for both the owners of the farm and the buyer. The country estate market is more successful and active than the urban housing market, since supply and demand are constantly fluctuating thanks, precisely, to the real estate crisis. In Spain there is a wide range of rustic properties that offer a great diversity of land and high quality. Among the catalog of farms, we can find recreational farms, agricultural farms, with olive trees or meadows, for personal use or for construction, etc. Along with a great variety in the type of land, we are faced with a great variety of prices: in the center of the Peninsula, such as Castilla, for example, we find farms whose price ranges between €5,000 and €15,000 euros per hectare. On the other hand, in the south of Spain, such as Andalusia, we find land for between €10,000 and €20,000 per hectare. Within the real estate market, the rustic sector of rural properties configures one of the most variants depending on the characteristics of the farm. However, the prosperity of the sector is indisputable. Therefore, investing in a rustic property is a great decision, despite the doubts and risks that may arise. What can be built on a rustic farm? Rural properties are, within the real estate sector, one of the most powerful assets in terms of their economic exploitation and their residential use. A farm can be used for a first or second residence. We must bear in mind that an investment in the rustic real estate sector can bring us great benefits and a wide variety of exploitation possibilities. Based on the possible uses of a rustic property, we must take into account what the regulations allow in each case. The Land Law, whose regulation is managed by the autonomous communities and the City Councils, establishes a general framework that is characterized by the following guidelines: The acquisition of a rustic property cannot lead to a residential development, except if we are facing a reclassification of the land. The regulation of the rural real estate sector allows to carry out a rehabilitation of the existing construction to allocate its use to the habitual residence or to the exploitation of a rural tourism business. In the specific case of demonstrating a need for development, for example, of agricultural activity, it is allowed to erect new buildings. Thus, the building permit for the land depends on the use of the farm or the new construction. Install infrastructure related to renewable energy, such as solar panels or wind installations, or related to communications, such as telephone masts, is allowed. The uses and possibilities of building or operating rustic properties are very diverse. For this reason, they can be a great investment opportunity and generate great benefits. However, we must bear in mind that, depending on the type of land, the value represented in the price of the property may change. What economic activities can be developed in a rustic farm? (agriculture, livestock, hotels, restaurants, etc.) In Spain, the rural environment is characterized by very suitable qualities for livestock and agricultural activities. The interest in the rustic real estate sector in the peninsula continues, today, in force. The profitability derived from the exploitation or rental of the land and the revaluation of the land in the long term maintains the willingness of the Spanish population to invest. In the case of agricultural activity and, more specifically, in reference to agricultural income, the market presents a very positive outlook due to the increase in production value. This is because, in this activity, profitability depends on the quality of the production, the weather, market prices and other variables. We must bear in mind that investment in land for agricultural production purposes, knowledge of the land and its activity are necessary to maintain the profitability of the rustic farm. In addition to its main economic activity, there is more and more variety in the purposes of the farms, such as tourism, recreation, a second residence or vacation space. This is another key factor in determining the value of each property. Since we are faced with a wide variety of farm or building uses, the profitability of agricultural activity depends on different factors that determine its value. This diversification of land use makes it possible to promote rural depopulation, which represents, according to a study by the FEMP, a major problem in these areas, since more than 4,000 municipalities on the peninsula subsist with less than a thousand inhabitants and are in serious state of extinction. Conclusion Nowadays, we are faced with a wide rustic real estate market that allows us a great diversity of functions and activities that derive in a great profitability of the farm. For this reason, taking into account the variety of options offered by land in this area, it is essential to have a specialized trustworthy agency and manager of rustic properties. At Crops Capital, we advise you to make a good investment in the sector. If you don't dare to invest in the rural estate sector, to buy land, to exploit the resources, you will not be able to obtain the benefits you want. For this reason, at Crops Capital, we want to help you achieve your goals and make this whole process easier for you.