Investing in a farmland is truly an asset!
However, you may later discover that there are many restrictions and challenges to be faced as you try
to develop or sell the land.
1. No instant cash flow
Now, although you wouldn’t have a mortgage to make payments on, you would likely have other
expenses, such as property taxes, the cost of improvements, and sometimes even association fees.
Without rental income coming in, you may need to get creative in order to cover the expenses. For
example, you could sell parcels of the land or the rights to it (i.e. mineral rights, gaming rights, etc.), or
you could find another use for the land in the meantime.
2. Legal hassles
How the property is zoned locally (i.e. residential, commercial, etc.) can determine what you are able to
do with the property as well. The timeline for getting your project approved by the township can also
How many lots you’re allowed to develop is another big question, which dictates how much you can
make through subdividing.
3. Physical Hurdles
Sometimes the property itself can have issues. For example, I would avoid flat lots due to water runoff
issues. Likewise, with mountain property, steeply graded land is harder to build on. Also, I would need to
be clear on the situation with septic, sewer, water, and road access.
Besides township restrictions and any issues with the property itself, the success of your deal can also be
partially dictated by market conditions.
4. Market plays a direct impact
Let’s say you didn’t build on the land, but you did improve it somehow post-purchase (i.e. subdividing,
roads, sewer, etc.) and/or the area appreciated. You may still have a great deal on your hands.
If you purchase in a down market (i.e. buyer’s market) with the intention to build or improve the
property and then sell, the big question is can you afford to hold the property while waiting for the
market to turn around?
Market time depends on the area as well. I can’t stress enough how critical it is not only to do your due
diligence but also to understand the development costs and the demand for and market value of your
Hence to overcome all your legal, physical and other hurdles;
Pahani has the best agricultural land for
sale in Andhra pradesh. Also invest now in the best rates and have great incomes on lands for sale in