Friday 31 May 2013

Farm Land Investing in Mexico


One of the many unique things about farm land investing in Mexico is that there are brokers with access to available farm investment opportunities across the country. 

All things considered, a farm in Mexico is one of the most turn-key, user-friendly land purchases you could make anywhere in the world.




What would you do with your land once you'd bought it? You could either rent it out or hire a farm manager. 

A farm manager is like a property manager for a rental property. 

He is the key to your success. 





In Mexico, there are many professional farm management companies, meaning, again, your options are turn-key.

Prices for farm land for sale in Mexico range from $1,000 to $4,000 an acre ($2,500 to $10,000 per hectare). Again, this is tied to productivity rating. 

Buy as much of the most highly productive land you can (as opposed to more of lesser rated land) with the budget you have. The better rated land will hold its value. 



Your return will depend on what type of product you instruct your management company to farm. 

Agriculture will return 4% to 9% per year; cattle 3% to 6% per year; forestry 6% to 10% per year. 

The most productive land is to be found in the country's southwestern corner.





The option would be to lease out the land you buy. Your return this way is less but more reliable, at about 4% a year. Many people buy and rent out for a year. Then, when they're more comfortable with the whole idea, they hire a farm management company for the greater yield. Farm management companies charge 5% of gross sales or 10% of net income.

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