

Recently (July 18, 2011), I located two other interesting potential wine-growing investments:
In Argentia, you can buy a 5-acre vineyard for $71,500 (US), and let the resident winery/lodge harvest and market the grapes under its own label.
http://www.gavilanvineyards.com/gavilan/index.html
Also, much closer to home (or rather to Tomi in Mountain View) is a small 10 acreage near Boulder Creek, CA
http://www.vinesmart.com/wine/real_estate/land_for_sale/vineyard_potential/615_10_acres_perfect_site_for_your_new_vineyard
While you are developing the land as a potential vineyard, you could live in small cabin home for under $80,000 about 1 mile away in Boulder Creek.
http://www.realtor.com/realestateandhomes-detail/185-Cliff-Vw_San-Lorenzo-Valley_CA_95006_M12916-84450
See local vineyards and wineries in Santa Cruz County (some near Boulder Creek):
http://www.hwy9.com/Directory/Category/wineries.aspx
Also, in Somona County, CA, there is an already producing Pinot Noir vineyard, olive orchard, and custom 4-bedroom, 4-bath home at:
http://www.realtor.com/realestateandhomes-detail/Petaluma_CA_94954_M21086-94933
Original Posting is below:
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Here is the set of Argentina vineyards and agricultural land and residential properties on VineSmart.com http://www.vinesmart.com
I was interested in the one with two wineries, 50+ acres, and also the future hotel, restaurant and wine-tasting resort. However there are other much small and less expensive properties.
http://www.vinesmart.com/real_estate/listings/south_america/argentina/argentina_vineyards_for_sale.html
There seems to be more to it than just the land, it appears that you also get deeds and licenses for wine export and import (to the US) as well.
The real estate agent for the above is:
http://www.byronlutz.com/
I would certainly want to speak with him directly by phone or in person. He has a lot of info-mercials about wine in Argentina, and tries to 'prove' that it's a good investment.
By the way, the wine he mentions and so does Forbes Magazine is called 'malbec'. The articles seem to focus on how Argentine wines will be steadily more and more popular. (a con job or true.. I don't know).
A short 'no' - which might mean she's already considering or doing it, or that she's already found out that it a bummer. You're right - global warming may be driving up or changing grape production in that region and the locals (Argentines) can already what is going to happen in 5 - 10 - 25 years.
She might utter a puzzled 'what?' -- Pretending not to know.
But she might be honest (or tricky) and say that she'd like to find out more.
Even if it a good investment, I don't have or want to go into debt to buy a $1.4 lemon or even potential cash cow - that is
Certainly a lot of logistical questions and contractual ones need to be answered.
1) The grapes are certified as organic.
See Mr. Lutz listing here direct:
http://www.byronlutz.com/organic.htm
2) Current production is 200,000 bottles per year, but he 'says' it could have a capacity of up to 2,000,000 bottles (although they are exporting the grapes mainly China and Russia now) - that there is capacity at the 2 wineries to bottle that much annually (either our own wines or for others) with a winery bottling cost of about $0.65 cents each.
So..... we'd have to know how much the various wines actually sell for (retail and wholesale) and what the 'hidden costs' and operating costs are. Lutz details some of that in his advertisement in VineSmart and also on his site.
It sounds interesting but then again.. you know more about wines than I do. But you may not know as much about investing. Do you know anyone who does?
Argentine Vineyards Buyer's Guide
Another site http://www.argentinevineyardsforsale.com/book.html bring us a lot of good questions (which he says he can answer - if you buy his book (like dud!).
- Why you need someone who speaks Spanish and your language
- Why you may need a Vineyard Manager
- Why you need an Agronomist who provides a Report before you buy
- Why you should inspect the vineyard with your Agronomist
- Why you should use a Vineyard Manager to interview Vineyard Worker(s)
- Why you should inspect a Worker's House
- How to use a NEW Survey that will evidence CURRENT water rights, boundaries, grapevine quantities, grape types etc.
- Ghost grapes and why you need to review the "Official" receipts for the prior year's grape yield
- Reviewing the Vineyard's Registry Documentation
- Why you should inspect the condition of electricity, gas, water, septic, water well etc. for the Worker's House and all other buildings
- When to instruct an Escribano to conduct a Title search
- Can you get and do you need American Title Insurance?
- Firing a Worker before hiring him, when you need to talk to an Argentine Accountant regarding current and past Vineyard Worker's wages and benefits
- Why you need to establish Argentine AFIP Form
- Why you need to open an Argentine Bank Account with AFIP #
- When you need to have your Escribano create a Boleto (contract) spelling out details of your vineyard purchase
- Reviewing the Boleto with your Argentine Attorney
- Signing the Boleto and tendering a 10% – 50% deposit
- Instructing the Escribano to prepare a "Bill Of Sale" for all vineyard chattels, e.g. tractor, implements etc.
- The proper protocol to wire money to your new Argentine Bank Account and proof of where the money came from
- Why you will pay a 2%+ Escribano Fee plus a 2% Transfer Fee based on the vineyard's sale price
- Closing the deal with your Escribano. A wheelbarrow of cash
P.S. The (hidden) email address is the one to my personal blog: http://dbrooks_tokyo.blogspot.com/
Please use that address with caution (since it posts stuff automatically).
David (otherwise known as Dad)