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It does limit the land value NHG, today it does, which is a good thing IMO. If I can see a potential when it is still hazy on the horizon and when everyone else is thumbing their nose then I could see huge gains. Just look at those precious metals. Who would have thought 6 years ago that 400% gains and more were on the horizon? Some did and now their sitting on big profits.
Your points are quite true, today, but in 10 years time? In 20? Personally I am putting money into it and the land doesn’t have to be farmed today, a small average of good soil with a house on it can be had for a lot less than a suburban house and it too can be rented out to people in the local area, though for a lot less but enough to cover all expenses. The key is good soil, water and proximity to a regional centre I believe.
I guess it boils down to whether you believe that the last 50 years will be repeated or if instead our western societies morph into something different. All the signs I see, rising food and energy costs, retracting service and luxury industries, seem in my mind to point to a very different investing environment than the last 50 years I have lived through.
Interesting to see this come out jess, I disagree with the other posters, I believe farmland, “not landbanking?” Will be a great investment going forward. We are in a new paradigm, that is obvious to everyone who can accept it, and the old investments are rapidly showing themselves as losers. The years of sitting on your bum and counting on little entrepreneurs to make lots of money and pay you lots of rent is fast coming to an end.
I see no reason why energy and food prices will reverse their uptrend in the decades to come. With 6 billion odd to feed, farmland that you can work or put others to work on is a good idea I believe. Much better than a powdercoating shop or a technologies shop, all of which are now contracting, with many of their landlords beginning to struggle to cover outgoings.
