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Investing in Agricultural Land

Finding and buying

Of course all of this makes perfect sense, but how on earth do you go about finding agricultural land, how much does it cost and how do you buy it? Help is at hand with a number of qualified agencies that can help you buy, sell and rent your land as well as claim any due EU or government subsidies.

In effect, the procedure is no different to buying regulated land or property. You can view land details via an agent, check out the location online with Google Earth, which provides satellite images of the exact location or you can organise a viewing trip. Land prices vary in the same way that housing prices do and in a way they follow the unwritten rule of “location, location, location,” but not in the sense of a good sea view will yield dividends!

The north east of the country is known as the “Golden Dobrudzha” for the multitude of yellow grain fields. This is the agricultural world’s “Blue Chip” investment – high prices and demand is strong, yet you can buy agricultural land in some areas for as little 0.10 Euros per sq. m.

 

The centre of the country, which produces the famous Bulgarian Rose, whose oil is in most leading French perfume is grown on acres of agricultural land. The rose has to grow for three years before its petals are ready for harvest.

As soon as you have made your decision to buy the procedures are the same as buying a house; you set up a Bulgarian company, a solicitor researches the title, draws up contracts and the transaction is witnessed before a notary.

 

Being a landowner

Once you are part of the landed gentry, there are three routes you can take. Either you can land bank it and do nothing but wait to reap the returns as prices rise or you can earn rental income by leasing it out to interested parties as you might do with an apartment in the property market.

 

Finding the farmers to rent the land is easy and in many cases the farmer will approach you, the landowner, but again agencies exist to help you find the right tenant just as they do in the property market.

The best thing about renting farmland is that farmers want long-term rental contracts because they need time to cultivate the land and establish a good crop. Maintenance costs, which would be incurred as part of property rentals, are non-existent; there are no taxes and no annual payments.

 

 

Convert to building land

The other route you could research is the future potential to convert the status of your land from agricultural to regulated and then sell it on as building land at a much higher rate.

The laws on changing agricultural land were modified this year and the government has restricted the conversion of land close to the shoreline or in designated national parkland. It is still possible to convert land and a good solicitor will be able to advise on this issue, but generally over time land is released for development and often it is just a waiting game.

 

However, when your land is bringing you excellent rental returns, you may be better off sitting back and reaping the benefits of your agricultural harvest!