Vineyards as Investments: Benefits, Worth and Advice

vineyards and wine

If you love wine, there must have been a time in your life when you thought you can make the wine yourself on your own vineyard. That idea must have felt too good to come true. After all, turning a hobby or something you love into a business venture is not for everyone. But, those who are brave and dedicated enough to do it, receive ultimate fulfillment.

Getting hold of land that is right for you and can help to achieve the vision you have for this wine venture will be your first big step.

Purchasing land for a vineyard and running it successfully requires specialized training. If you are devoted to the cause, both are doable. However, you must first understand what it means to buy such land, and how to run it successfully.

The Gravity of Owning A Vineyard

Some people want to dive into a vineyard investment without understanding its importance. Vineyard investment can be huge.

For starters, you may either buy farmland or convert the land into a vineyard where grapes have never been cultivated. Or, you can also buy a working vineyard, where you know which grapes can be grown. Working vineyards are easier to manage.

Both the above options will either require you to acquire a winery or sell it to a buyer who has one. Some vineyard estates come with their winery, so buying that will allow you to grow your grapes and make wine on the same property.

Some of these vineyards are large and made for commercial production, and others are small and come with a luxury residence. These are called hobby vineyards and often serve as vacation or second homes. 

The best wine region in France has some of the most beautiful chateaus attached to their vineyards, which can be found in a variety of price ranges.

A Guide to Purchasing a Vineyard

The following guideline can help you understand the ropes of owning and running a vineyard so that you can decide whether this pleasure venture is worth your time, energy, and money.

What Kind of Wine Would You Like to Make?

Before starting to look for the right land, you must settle on the type of wine you want to make. Decide your pick from the five main types of wine: red wine, white wine, rosé wine, dessert wine, and sparkling wine.

The type of grape you want to use will help to determine the best climate for growing the grape, and vice versa.

Although the commonly grown grape varieties(Cabernet Sauvignon, Chardonnay, Syrah, etc.) are internationally used, a few grapes are mainly dependent on a particular climate. For example, the Malbec grape requires a lot of suns, therefore needs to grow in a hot climate.

Some special types of grape varieties are better produced in the areas they originated. For example, white grape Torrontés is found in Argentina, red grapes Merlot and Grenache(The most common grape for making rosé wine) in France, red grape Sangiovese in Italy, etc.

The dessert wines are made in cold countries, so grapes like Riesling, Gewürztraminer, etc. are grown in Germany, Austria, and other chilly climes.

Where Do You Want to Buy Land?

Just as you can choose a grape and then find the right land, you can also buy the land of your choice then find out which grape will thrive there.

If you are passionate about wine, you might be tempted to go to a charming European country to buy land. Depending on your budget, you can find land in practically any grape-growing country. Some top growers of wine grapes are France, Italy, Spain, The United States, and Argentina.

These top locations have selected wine regions that have developed tourism focused on wine. If possible, take the opportunity to travel to these beautiful wine destinations to learn about the vineyard land there. Before settling on a location, you must visit the land to understand its current conditions.

If you have decided on buying land in traditional European countries like Italy and France, you might have to spend more money. The lowest prices per hectare can range from 9-10 thousand to even a hundred million euros.

Growing Your Expertise

There are certain things that you cannot learn without experience, however, you can always learn from other people’s experiences.

Talking to an experienced vigneron can help you understand the various ways of growing grapes. If you have selected a land, then talk to one who is a local farmer. You will learn a lot about the climate, soil condition, grapes, water sources, etc. 

You can also talk to a good vineyard and winery consultant who can advise you on your venture. Talking to an expert will help you figure out whether buying a vineyard is for you.

There are many online resources decked with information about running a vineyard, which can help you to learn about the process. You can also find grape, vineyard, wine, and winery-related books that can help to grow your expertise.

Make sure you take an expert with you when you visit the land, as they can help you evaluate the condition of the property.

Handling Finances

Will you be able to handle a vineyard investment with your current financial condition? You may not be able to answer that question, but your banker can. After settling on a property, talk to the experts in your bank.

Most financial institutions offer services to help you with your investments and might be able to give you a financial update for running your venture. Make use of tools available to you, to get a better picture of what you are getting yourself into financially.

Your bank can help you figure out how much investment is right for you. There are many hidden costs of a vineyard investment, and your financial advisor should be able to help you with that.

You will need to hire a lawyer for your international real estate investments. If you do not plan on moving close to your vineyard property, you will also need to hire a manager for the estate.

Is it Worth To Invest in Vineyards?

Finally, is investing in vineyards worth it? It will be if you can run it well and are happy with your investment. This kind of passion investment needs devotion and time. If you are willing to do that for your passion project and have the money to finance it, there is no reason why you could not fulfill your dream.

However, don’t expect to make a profit immediately. Agriculture-based investments can be unpredictable, so you may not make a profit with every harvest. But, if you stick to it and manage to grow the brand of your wine, it would be worth all your hardship.

However, if you are simply looking for a luxury home to fulfill your European summer dreams, investing in a small hobby vineyard is worth it.

Bottom line

Purchasing the vineyard is only the tip of the iceberg. If you want to run your vineyard well, you must be passionate, dedicated, and willing to spend money. Your investment will only be of value when you are making a profit and are satisfied with the venture.

We hope you found this blog post on Is It Worth Investing In Vineyards? Here’s How You Do It to be useful. Be sure to check out our post on 7 Beautiful Travel Destinations For Wine Lovers for more great tips!

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