With
real estate prices hovering around historical highs in most urban areas,
traditional PROPERTY INVESTORS are looking at other viable options. One idea
floating around these days is buying agricultural land, which experts say, may
not weigh too heavy on your pocket. It could also be a source of tax-free
income, they say. However, expert says that "Buying agricultural land is
the most sensible thing to do, though there are many issues involved,"
says Anand Narayan, director -residential, Knight Frank.
To
begin with, almost all state laws allow only farmers to buy agricultural land.
"To protect agriculturists, legislations in each state in India have set
out that agricultural land can be used for such purpose only. For acquiring
such land, a common attempt is to bracket yourself as an 'agriculturist' even
if you don't fall in that category," says Ashish Bhakta, partner at Advaya
Legal says. Now, there are two ways to do it: one, you have to show that your
father or grandfather was a farmer. Two, you have to show that you already own
some agricultural land. It is almost impossible to change your father's and
grandfather's occupation, if they are not farmers. That is why most people try
the second route. "Many people have bought land that is totally uncultivable
to get the status of a farmer. Thereafter, they buy good agricultural land for
cultivation. This is very common," says A LAWYER who doesn't want to be
named.
Location
And Area
Needless
to say, agricultural land (that too, vast tracts of land) is unlikely to be a
small drive away from your home. As a rule, don't consider the distance from
your home as the primary concern while scouting for agricultural land.
"Distance from farm land is of no major consideration. Access from the
main road, visibility from various roads, availability of or accessibility to
electricity and water for the site should be kept in mind," says Manish
Aggarwal, executive director, INVESTMENT SERVICES, Cushman & Wakefield,
India.
The
size of the plot you BUY is also important. Experts believe you should go for a
large land parcel so that you can carry on agricultural activities in full
swing. Narayan of Knight Frank says, "You need a large parcel of land of
about 50-60 acres."
Article
in ET Bureau
