"The returns are ordinary at best so you are purely punting on capital growth ."
on average, perhaps yes.
Sometimes though, the returns are spectacular.
Top class agricultural land in and near Forth Tasmania has spectacular returns for owners ------------ don't try and buy it though - it just is NOT for sale.
Also through the Midlands at the moment massive amounts of investment are going into a huge irrigation scheme - properties that benefit are having huge multiples of valuation rises.
A lot of those properties were great returns anyway - many very historic properties - but when watered the returns will be astronomical.
Water is indeed the key ----------- but combined with Grade One farming land ---------------- you have rocket returns.
Anyone wanting to see agricultural return examples - go for a leisurely drive around Rhiana NW Tassie, Forth, NW Tassie and explore small winding roads west of Ross to Cressy and Oatlands (in the middle, near the highlands) - stay well away from the highway - what you see is quite extraordinary. I shall take some pics next time I go through there for the forum.
