Love drinking wine? Is owning a wine cellar not enough for your wine-loving soul? Turn your passion into profit, and consider buying your own vineyard!
Any wine connoisseur might dream of owning their vineyard someday. After all, if you understand what makes wine taste good, you might desire to create your own wine.
Whether you wish to own a vineyard to make wine only for yourself or sell it commercially, buying and running this kind of real estate requires specialized knowledge.
You must buy the right kind of land for growing the grapes and understand which size of the land is right for your desired output level. To choose the right piece of agricultural land you will require specific knowledge on land criterias. For instance, you will need to be capable of evaluating soil quality, understand the water source, inspect the amenities and so on. When you feel confident about the research you have done for all critical points, you can consume the agricultural land for your vineyard. Even if you manage to acquire suitable land, running a vineyard becomes the next big issue.
Don’t be discouraged; this guide can help you understand how to buy and run your very own vineyard.
Understanding Your Vineyard Requirements
If you are an investor, you would want to diversify your portfolio with different types of assets. Even if you focus on real estate investments, not two types of real estate work the same. If you are thinking of owning a vineyard, you will need specific knowledge of that type of real estate.
Finding a vineyard real estate expert, such as a broker or a conveyancer, is a must. There are picturesque Vineyards in France just waiting for a new owner! Your fantasy of owning a french vineyard can become a reality, too, or you can also opt to purchase a vineyard within your country.
The following are some essential factors you must consider before you can buy and run your vineyard.
Size of Your Vineyard and Whether You Would Be Able To Run It
You might have imagined owning a flowing vineyard with acres and acres of lovely grapevines growing majestically, but let’s get real. The price of your buying the real estate will depend on the size of that real estate.
You must first decide whether you have the finances to back the buying the vineyard you dream of owning.
Real estate investments are about more than just spending money to acquire properties. Many vineyard real estate owners face losses because they have no clue how to run such a business.
To operate a vineyard of that size isn’t child’s play. If you want to run a vineyard successfully, you must learn how to run it, have clear goals, and understand what you want to accomplish.
Settling on the Right Location
Settling in the right location for the vineyard is extremely important. Most available vineyards real estate are located in places with good soil and weather to nurture your grapevines.
However, that desirable location must also be easily accessible to you. You may want to rethink wanting to own a vineyard if it is difficult to travel out of your home city frequently? Even if you hire help to run your vineyard, you must keep a close eye on your estate to ensure everything is running smoothly.
Hence, wherever you decide to buy real estate, make sure the place is somewhere you can frequently visit. If you must stay close to your home, find one that is within your residing country.
Type of Grapes to Grow
The obvious answer would be that the type of grapes you grow depends on the wine you want to produce. However, settling on the grapes to grow is not that simple.
You must understand the type of grape that is suitable for the land you plan on buying. The type of soil and the area’s climate will nudge you towards the right kind of grapes to grow.
You need to learn about the type of grapes that grow well in your land for picking your grapes. You need to decide which kind of grape you want to plant for your desired type of wine from those options. If you’re going to mass-produce, opt for hybrid varieties.
Plans of Expansion
If you want to run a successful business and have planned well into the future or have hopes to expand, you need a location that can accommodate future expansions. In an area where there are a few vineyards close by, you will have a better chance to expand.
You might consider buying a vineyard near a wine trail. One of the benefits of being near a wine trail is the availability of more vineyard lands nearby, which you can invest in later for growing the business.
Understanding Your Finances
You need to meet the financial institution you bank with to discuss this real estate investment. A banker would be able to help you thoroughly understand the feasibility of such an investment.
Once you get into the discussion and various points are brought to the table, your banker can help you see whether you can afford to buy a vineyard and successfully run the business.
Depending on your finances, you can finally understand what size of land you can afford and whether you can successfully run it. You don’t want to buy a large vineyard that is difficult for you to manage. Avoid buying a property that is incurring more losses than bringing in profits.
Meeting an Expert
As mentioned before, after settling on your finances, you would want to meet with an expert who can give you options to choose from. A broker, agency, etc., might have data on past outputs and possible profit you can make. They can also find you the perfect vineyard in your chosen location.
You Must Visit the Vineyard Before Deciding To Invest
Once you decide on some options to choose from, you must visit these vineyards. A visit will give you a better idea about the vineyard. Walk around the place and give it a thorough look. Always ask a lot of questions and remember that you have every right to.
You might want to ask critical questions like soil quality, water sources, and land irrigations. Also, remember to ask about current buyers and possible future buyers.
You want to understand whether the land has been used for grape production in the past. If so, then who is currently running the place? And, what is it’s grape production capacity? Make the visit count and learn as much as possible.
Owning a vineyard is a dream many wine lovers dream of, but many don’t understand the weight of that possible real estate purchase. Not only do you have to have the finances to buy it, but you must also be able to carry the responsibility of running it.