Answer… a 26% increase in land values!

This is, according to government statistics, the amount by which Uruguayan land prices rose in the past year.

This confirms the upward trend in land prices which we were projecting. We have been following events in this and other parts of the world, and see the trend of global events driving prices even higher.

This trend is similar to the scenario which played out in Argentina some years ago. At that time, some foreign investors who passed over properties as an investment were left behind, as prices went up and doubled, tripled and even quadrupled in a 4 – 5 year time frame.

As humans we cannot tell the future in detail but we can spot trends and judge with a reasonable degree of certainty the likely outcome.

We encourage those of you who are considering investing in this region of the world to contact us for up to the minute information on land values and opportunities – we don’t think you will be disappointed!

April 16, 2010

Stretching the cash…Looking at the numbers…Finding the right scenario...

 

The number one question for investors is, “How can I best allocate my land investment money?”

 

The Simple Answer would seem to be, to buy as much land as I can afford and start working!

 

The problem with this approach is that many who want to live overseas simply don’t have enough capital to guarantee an adequate income under this scenario.

 

What to do?  One solution  is buy a house (in town or countryside) and having a home, to rent land for production. This would raise the return on the total amount of the investment by a factor of approximately four…ie a return of $20,000 on wholly owned land would become $80,000 on rented land.

 

A more practical solution for many investors would be to buy a home and hire a local agronomist to find land to rent and then administer it.

 

This approach has the advantage of having a  manager who is immersed in knowledge of local conditions and who also has a network of providers enabling him to obtain the very best prices all the way through the production chain.

 

There is also a very practical plan for investors preparing for retirement.

 Let’s take for example an investor 45 years of age looking to retire at age 65. Supposing an investment capital of $200,000 and an average annual return of 17% in an agricultural investment program, the initial investment would have compounded to be worth $4,600,000 at retirement age.

This is a quick rundown of the situation in our neck of the woods. If any of this rings a bell we would be happy to talk with you personally at your convenience.

Looking forward to being of service,

Paul Ravenhill.

March 21,2010

This is a note to keep everyone up to date with developments in Uruguay.

Right now we are approaching the end of the agricultural year. Soybeans will be harvested next month, and all indications are that the crop returns on rental land will yield an exceptional 30% plus. Rental agreements for the sowing of next years crop take place when the present contracts expire after the harvest. We are already engaged in lining up land for soybean planting and hope to wrap this up before the rush of demand takes the best lands off the market.

If any of our clients and readers would like to take advantage of what Uruguay has to offer in this area, we invite you to join in one of our investment pools for this coming year. We would be happy to discuss with you the parameters and possibilities of this project.

You may email us or give us a contact phone if this interests you.

Thank you,

Paul Ravenhill.