Greek immigrants not only buy a house, buy land is more cost-effective than buying a house, compared with the previous single house purchase immigration model, and overseas investment "property abnormal premium" for investors' concerns, AT olive farm fair land prices and mature agricultural operation model, to investors to bring a very attractive new investment direction.
To have a piece of agricultural land that has been passed down from generation to generation is indeed an opportunity for most investors, but since it is an investment, we will consider the risks, and we will do a SWOT analysis of the At Olive Farm in Greece today to help investors think rationally, and welcome like-minded investors to discuss with us further.
Advantages STRNGTHS
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Purchase price: Greek AT olive farm 250,000 euros can obtain 70 acres of about 46,600 square meters of permanent land, the price per square meter is about 5.3 euros, less than 40 yuan / square meter, as a new farm after the upgrade, the price is fully in line with or even lower than the government guidance price, there is no super premium, investors can be arbitrarily compared in the market, not afraid to buy losses, and laid a good foundation for future land appreciation.
Number of plants: Yield is one of the important indicators of income in the field of agricultural economy, the area of agricultural land and the number of crops are the basis of yield, every 70 acres of AT olive farms, covering about 1400 "Kolaxi" varieties of olive trees. The tree species matures to a productive period, each tree will produce 50-100 kg of fruit, up to a maximum of 100 years, and the yield is the main source of income for olive farms.
Business model: AT's main income comes from olive oil income at maturity. During the lease period, the AT company needs to invest in production costs, and only after harvesting can it share the benefits with investors. Compared with traditional real estate management companies, AT is more closely tied to the interests of investors and has stronger stability. Reasonable control of reserve land in the early stage, no pressure on capital flow. In order to expand the diversified development of business needs, more advanced projects will be built and expanded in the future, including olive oil brands, refineries, entertainment parks, sightseeing farms and health farms and other related industrial chains, and gradually upgrade new farms according to market demand, and industrial upgrading will bring more returns.
Passive income: Investors don't have to be familiar with crop types or know how to grow them in order to reap substantial returns. By leasing to AT Agricultural Company for farming and harvesting, AT is responsible for the day-to-day management of land, assets, agricultural machinery and equipment, harvesting and sales, while investors can generate passive income without having to work. Agricultural production can also receive preferential policies such as agricultural tax breaks or agricultural subsidies.
Management team: Greek land appraiser (senior real estate economist), lawyer consultant (60 years of senior lawyers in the law firm), senior agricultural experts (senior agricultural technicians, olive planting experts) composed of localization management team, to meet the legal demands of investors' asset allocation and immigration, senior agricultural experts engaged in olive planting management for 40 years, production and sales of olives channels are smooth and worry-free.
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Market demand: Three-quarters of the world's olive oil is produced from EU countries, Greece ranks third in the world in olive oil production, Greek olive oil is known for its excellent quality, of which more than 70% is ultra-pure olive oil. Olive oil market demand in Europe and the United States is stable, Greece per capita annual consumption of olive oil 25 liters, Greece as a special virgin olive oil export power, the local olive oil purchase price is stable, under the epidemic sales price further increased.
Olive industry: The history of olive cultivation in Greece dates back to the Bronze Age. On the one hand, the Mediterranean climate is suitable for the sustainable development of agricultural planting, on the other hand, the technology and sales and management system around the field have been developed and perfected, and the olive oil industry belongs to the traditional industry with an organized and mature system.
Scarcity of resources: The main reason why agricultural land has good investment opportunities is stability and profit potential, land, especially agricultural land, is a scarce resource in various countries, and there are very few countries that can obtain immigration status through investment. Greece has no restrictions on foreigners to buy land, can buy and sell freely, and is a freehold property can be passed on from generation to generation, now buy early to lock in scarce land resources, the future will have a high return on appreciation.
Anti-inflation: Land as a hard asset, it has little volatility, strong historical performance, low investment risk, low correlation with recession, regardless of the world economic situation, real estate may collapse, the stock market may collapse, and the value of land is increasing. Faced with a historic global high inflation rate and rising interest rates, it provides a stable safe haven for investment in farmland value, and when food prices rise, higher crop prices are obtained, and as crop prices rise, the value of the land itself increases at the same time.
Higher income: compared to real estate rental, the income of renting a farm is higher and more stable, the land has no house depreciation, there is no cost of maintaining a house, the land has a higher return on value than the property, it does not have the geographical limitations of buying a house, using the advantage of the farm's high rental income, you can rent a house wherever you like, more convenient and flexible, in addition to rent, the rest of the money can also subsidize living expenses, easy and comfortable.
Disadvantages WEEKNESSES
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Long-term gains: Growing olives should be patient, and it is not suitable for investors who plan to hold them in the short term and want immediate returns. As with all agriculture and animal husbandry, basically the first two or three years are the initial stage, do not expect to get a considerable income from planting, so the growth and maintenance period after planting is crucial, AT olive farms are planted with 3-4 years of olive saplings, generally in 6-7 years will have a good yield, the first three years after planting is an important maintenance period, will prune the branches to take other measures to limit the results, in order to make the root system take root soil to grow better, in fact, do not have a mass production scale, so the yield is only 1% per year, From the 4th year 5%, from the 5th year 6%, from the 6th to 7th year 7% per year, from the 8th to 12th year 8% per year, from the 13th year to the 9% per year.
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Low market awareness: Relative to the inherent thinking of the "Greek house buyer immigrants" that have been formed, the awareness of Greek land buyers is not high for investors (whether it is buying a house or buying land immigrants in Greece, the applicable law is Article 20 of the Greek Law 4251/2014), there is little understanding of agricultural cultivation in Greece, and there is a cautious psychology for agricultural land investment, and for investors, from cognition to completion of investment requires a process.
Environmental factors: Force majeure factors cannot be controlled, such as natural disasters, climate impacts, pests and diseases, and emergencies, and the risk impact can be minimized by purchasing agricultural insurance.
Lack of liquidity: Compared with real estate, land is not as mobile as real estate, which may make it impossible to immediately liquidate and recoup its investment when it needs to be resold. However, for AT farms, investors can choose to continue to hold after purchasing the farm for 5 years, or choose the original price repurchase exit option, AND farm will repurchase at the original price of your original purchase price, so as to achieve asset preservation and flexible control of capital realization.
OPPORTUNITIES
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Product and operating model: AT adopts the traditional farm management operation mode of the Greek mainland, cooperates with investors and bears all production management costs, investors do not need to add any additional investment, and share long-term benefits with each other. In Greece, there are many farms owned by individuals or families, preferring to be managed by professional agricultural companies, and the two sides negotiate the distribution of the proceeds, which has become commonplace in the local area, and many agricultural companies make a living from them. At farm prices are fair and verifiable, choose the "bundled" business model of income sharing, based on long-term cooperation and win-win, compared with the previous single house purchase immigration model, and overseas investment "real estate abnormal premium" for investors' concerns, AT farm fair land prices and mature agricultural operation model, to investors to bring new choices.
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Greece Golden Visa: Compared with the golden visas of Spain, Portugal and Malta, Greek immigrants have the lowest investment threshold, the highest cost performance, no requirements such as language, background, immigration supervision, no criminal certificate, explanation of the source of funds, and is a three-generation one-step permanent residence, Greece has no restrictions on foreigners to buy land, to meet the purchase price of land of 250,000 euros, you can obtain greek GOLDEN VISA permanent residence status for three generations.
Investment environment: In-depth business cooperation and political assistance between China and Greece provide a stable background for ensuring the safety of investors' investment. At the same time, Greece has completed the early repayment of the International Monetary Fund (IMF) and has lifted the European Commission's strengthened regulatory measures, and the international rating agency "Standard & Poor's" has upgraded Greece's long-term sovereign credit rating to BB, the outlook is "positive", and it is expected that the Greek economy will continue to recover in 2022, and the economic growth will reach 4.1%.
Agricultural investment: According to a survey from EY, 75% of investors believe that Greece is an ideal place for long-term investment, compared to Europe as a whole, Greece is at the top of the list, foreign investors are stepping up their investment in Greece, and the most invested sector in 2021 is agri-food, accounting for 20% of investment.
Threats to THRES
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Risks in long-term cooperation: AT does farm land integration, its fundamental purpose is to do large-scale production, AT farms cooperate with investors, sharing long-term benefits is a win-win situation, but if investors are unwilling to lease to AT after purchase, or break cooperation with AT in advance during the lease period, it will cause losses to the production costs of AT's early input. Also for investors, there will be different degrees of concern about whether THE farm can meet the long-term management and operation and ensure that its income is stable.
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Investigation of the impact of the epidemic: Due to the impact of the epidemic, entry and exit have been restricted, which has brought certain obstacles to the field visit of olive farms. Now travel will face several impacts: 1, easy to be infected risk; 2. The risk of customs persuasion; 3. High travel cost and expensive air ticket; 4. Time and cost of returning to China for quarantine. In the face of many obstacles, many investors' inspection plans have been affected to varying degrees.
If you want to know more about olive farms in Greece, please feel free to contact me in private messages. Pay attention to TONY said overseas, TONY takes you to see overseas.