Wednesday, 5 November 2014

There's gold in them there hills!

Hampshire countryside - heavily sort after by investors
If you don’t like the banks, are wary of investing in stocks and shares and have become increasingly suspicious of financial advisers, then it appears that you should consider buying up a few acres as a sound investment – if you can still afford that is!!!

Just up the road from where I live in central Hampshire, a 980 acre farm (with a barn converted, 4 bedroomed house) has recently gone on the market for a staggering £12 million. Surely, at this price, they have not really gauged the market properly. Well true, it appears not.

There have been more than 40 viewings which has resulted in 30 bids, sending the price rocketing to what is now believed to be over £16 million. So it looks as though this farmland will be fetching somewhere in the order of £16,000 per acre!

So why this extraordinary price?  Well most agents will tell you that location is always hugely important (easy to get to London), and will then undoubtedly go on to add that it also has a renowned Pheasant and Partridge shoot situated in attractive countryside, which always helps to attract potential buyers. Another driver stated by a number of agents, who are regularly contacted by investors who have around £10 million to invest, is that it is exempt from inheritance tax.

But there is probably an even bigger reason which is pushing up prices within our over-crowded country – long term returns. The average value of farmland in England has increased by 12% so far this year and by an incredible 187% over the last decade.

This outstrips the housing market as a whole, even in central London, with only the gold market notching up better figures, making farmland a fantastic long term investment.

So this green and pleasant land of ours seems to be turning to more of a golden colour me thinks!


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