At a time when volatility seems to have returned to the financial markets, when the bond yield curve is inverting and wages are rising, are we not on the verge of a new financial crisis or a new inflationary cycle?
Should we let our liquid assets flirt with negative rates and then see them depreciate year after year?
Which safe asset, which does not suffer from inflation and which has a significant potential for long-term capital gains, could, in the current context, prove to be a formidable investment opportunity?
The Wine-producing Land in Champagne
As rare as it is prestigious, the vineyard land in the Champagne region is not easily accessible but, guided and accompanied by professionals in the sector, it is possible to carry out, on a turnkey basis, very beautiful investment operations of two kinds.
First of all, to become the owner of a purchased plot of vineyard already rented, to benefit from a discount of 20 to 25%, and to receive a rent in cash or in bottles, but above all, to potentially see an important capital gain on the long term and to transmit under extremely advantageous conditions.
In 2006, Mr. ANDRE acquired a 40-acre plot of Pinot Noir vines on the Cote des Bar at a price of €282,760*. For 10 years he has received a total of approximately 56 000 € in rent.
In 2016, he sells his vineyard for €445,400* and will have received a gross tax amount of €501,400, including the rent, which is 177% of the purchase price.
€* valuation on the basis of free vines according to the SAFER scale.
But also for the most daring investors, to become the owner of a plot of vineyards which would be exploited in association with a wine grower, to elaborate quality bottles sold by the investor ideally for export, under his own brand.
Mr PHILIPPE acquired in 2006 a hectare of vineyard in full report on the Cote des Bar at the price of 706 900 €*. This vineyard is rented to a company owned 50/50 by the investor and the winegrower. Bottles are produced every year ** and sold for 20 € HT by the investor.
In 2016, the latter stops the exploitation and sells his vineyard at a price of
1 113 500 €*. Over the period, the cumulative rent was approximately 140,000 € and the gross capital gain, shared with the winegrower, linked to the sale of the bottles, will have been 394,250 for a total gross tax of
1,647,500 €, or 233% of the purchase price.
€* valuation on the basis of free vines according to the SAFER scale
€** On the hypothetical basis of the maximum production of kilos per HA authorized each year by the profession without climatic contingencies.
NB: These two examples are given as an indication and can in no way be used as a basis for commitment, knowing, on the one hand, that past performances do not prejudge future performances for the evolution of the price of the land and that wine production is subject to the vagaries of the weather which can make it uncertain or irregular.
Finally, wine investments are recommended for the long term, or even the very long term, for an optimal valorization and a very advantageous tax system.
Our brand new service in Viticole Investissement will know how to accompany you in your acquisition wishes, whatever your level of investment.