Investing in agricultural land in Ukraine offers stable passive income and the prospect of growth in the value of the asset. It is a profitable alternative to other types of investments, especially in conditions of instability and inflation.
Land investments
Advantages of land investments
The opening of the land market in Ukraine on July 1, 2021 created new opportunities for investors. The purchase of agricultural land became available to individuals, which led to the rapid development of this sector. The main advantages of such an investment include a low entry threshold, a competitive price compared to European countries and a stable annual passive income.
Despite its appeal, the main obstacle for potential investors is the relative newness of the market and the lack of experience Digital assets seem more familiar, and keeping funds at home sometimes seems like the safest option. However, are there any real risks of investing in agricultural land and what are its advantages compared to other resources? These questions are answered by Oleksandr Kravchenko, CEO of Zeminvest.
Land vs other assets
Keeping money "under the mattress" may seem like a safe option, but it leads to its depreciation due to inflation Therefore, the question arises: how to make funds work with minimal risks?
Let's compare with other assets. Investing in real estate requires a long wait for the property to be built and renovated, which can take years. In addition, with the beginning of a full-scale invasion, there was a risk of destruction due to shelling.
Cryptocurrency, despite its high liquidity, is characterized by significant price fluctuations and risks of hacker attacks. Bank deposits can also depreciate due to inflation.
Instead, agricultural land is constantly increasing in price, providing an annual income of 5% to 8%. The investor receives a double benefit:
- Capitalization growth from the moment of purchase
- Stable passive rental income
The experience of European countries demonstrates the perspective of land investments. According to Oleksandr:
"In Poland, the value of land increased from 1,300 dollars to 6,300 euros in a decade, which means a capitalization of 4.8 times. None an apartment cannot become so expensive in 10 years. Currently, the residential real estate market allows you to earn only 30-55% in 2-3 years when investing at the foundation stage."
How to start investing in land
Minimum entry threshold is $4000. With a monthly salary of $1,500, you can save $200 and soon make your first investment.
Oleksandr recommends diversifying investments by buying plots in different regions to average price growth and minimization of risks related to tenants.
It is important to consider the type of soil that affects the price. For example, the sandy soils of Zhytomyr Oblast cost $60 per hectare, while the chernozems of Poltava Oblast are much more expensive. However, irrigation systems can improve the fertility of any plot.
It is recommended to choose a reliable partner who will help at all stages: from finding a plot to checking documents and evaluating the reliability of the tenant. The Zeminvest platform is designed for convenient asset management through a smartphone.
For three years of operation, the land market has proven to be a low-risk investment that guarantees stable profits even in conditions of inflation and military operations. The investor receives passive income from the moment of concluding the agreement with the prospect of long-term growth. This is the path to financial independence in 20 years, when the market will reach its peak of development.
For more detailed information on investing in agricultural land, we recommend to consult with a Zeminvest expert.
Glossary
- Zeminvest - a company specializing in investments in agricultural land in Ukraine
- Oleksandr Kravchenko - CEO of Zeminvest, land investment expert
- COVID-19 is an infectious disease caused by the SARS-CoV-2 coronavirus
- EU (European Union) - an economic and political union of 27 European states
- Poltava region - a region in the central part of Ukraine, known for its fertile black soils
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Answers to questions
What are the advantages of investing in agricultural land?
How does investing in land compare to other types of assets?
What is the minimum entry threshold for investing in agricultural land?
What factors affect the value of agricultural land?
How can you diversify risks when investing in agricultural land?
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The article reveals the possibilities of passive income for IT specialists through investments in agricultural land after the opening of the land market in Ukraine. The advantages of this type of investment are described, including a low entry threshold and stable annual income.
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