I was recently chatting with an old uni mate, who is now a financial advisor, about a few acres that have been sold near me for £12k per acre.
He was asking me why anyone would do this from a financial view point, because if they invested in the stock market they would get a lot better return.
Stock market has been averaging about 10% growth over the past 70 years, one £12k acre would never return £1200 per year, especially with no input.
It got me thinking is he correct??
The only argument that I could think of was for inheritance reasons, but he assured me that a Stock ISA is inheritance tax free and £20k per year can be put in with no tax on any growth in value.
Are there reasons why somone would buy acres instead of investing?
He was asking me why anyone would do this from a financial view point, because if they invested in the stock market they would get a lot better return.
Stock market has been averaging about 10% growth over the past 70 years, one £12k acre would never return £1200 per year, especially with no input.
It got me thinking is he correct??
The only argument that I could think of was for inheritance reasons, but he assured me that a Stock ISA is inheritance tax free and £20k per year can be put in with no tax on any growth in value.
Are there reasons why somone would buy acres instead of investing?