Australian rural property is growing in popularity as an investment vehicle on a national scale but also global level.
Australian farmland has long been an attractive asset class for foreign investment with several of Australia’s flagship holdings having being held by foreign entities, however a shifting focus towards food security and anticipated global population growth has heightened the demand for quality agri production and processing assets.
Australia’s Agricultural Sector is considered attractive on a global level due to a range of factors:
- Australian Farmers are globally competitive producers
- Progressive and efficient management standards
- Diverse and productive mix of country types and climates
- Strong international trade relationships
- Strong logistical infrastructure – Rail, Road, Port systems
- Considered a stable economic climate and currency
- Attractive capital growth - historically attractive appreciation
- Close proximity to global markets
- Australian farmers are early adapters of technology and strive for increased productivity
- Efficient and resilient farmers with limited government subsidies or tariff protection
- Clean disease free country
Australian Rural Land as an investment:
- Considered a stable asset class
- Ability to achieve economies of scale
- Ability to invest passively or actively – eg owner operator or outright lease
- A general guide to Key Factors of Individual Asset Values
- Location of the subject property relative to markets, services, water, towns
- Level and condition of infrastructure
- Availability and volume of water licences
- Irrigation infrastructure
- Subdivision ability
- Housing and Accommodation
- Percentage of land arability
- Working improvements and facilities
- Scale and efficiency of farming systems
- Rainfall and climate
- Generic farm features including soil, aspect, trees.
Inglis Rural Property has held a long association with rural Australia. This association is echoed through their key personnel who both personally have grown-up in regional Australia and worked in a myriad of Agricultural sectors.
Almost as important as selecting the correct asset is the team or individual you engage to manage the asset on your behalf. Inglis Rural Property can assist with the identification, employment and selection of the correct management system through the utilisation of our strategic allegiances with existing and professional farm management groups and limiting your exposure to risk and maximising your performance.