Land Can Generate Income
While there are many different types of land properties available across the state, almost all of them come with one built in, inherent benefit - you can use the land to generate income by leasing it.
For example, let’s say you purchased a property with 120-ish acres (like the Gemini Ranch), and planned on it being your primary residence. Even with an extremely large home and several smaller outbuildings, you’d still have dozens and dozens of acres of land that weren’t actively being used. You could easily lease out that land for several different purposes (running livestock, growing crops, hunting, energy production, etc.) and generate long-term, passive income off the property.
There’s an old saying - land and water are the two things they just can’t make more of, so investing in either of them is usually a pretty safe bet. That’s exactly what purchasing land allows you to do, even if you don’t plan on working it yourself.
While the housing market can fluctuate strongly - as seen in the past couple of years - the cost of land typically stays on a more steady and predictable incline. Because it is a truly finite resource, it is continually appreciating as cities and residential areas move further and further out into areas that were once completely rural and undeveloped.
When you buy land, you’re making a solid long-term investment that is almost guaranteed to gain value and be reliable over time. Like we mentioned before, whether you do anything with the land or not, the simple fact of owning it makes it a valuable asset that is universally considered a wise investment by practically all financial pundits.
Tax Breaks and Incentives
While there are a few tax breaks and incentives for homeowners in residential, suburban or urban areas, there are many more opportunities to take advantage of when you own larger tracts of land.
First off, the property taxes are usually lower by default in rural, less developed areas than they are in suburban or urban communities. On top of that, many land properties can qualify for additional tax exemptions, such as agricultural exemptions, general residence homestead exemptions, or even a wildlife valuation. With the help of a tax professional, there are several ways to lessen your tax burden as a rural land property owner.
The Texas Country Lifestyle
While we’ve spent most of this blog post talking about the financial reasons to consider purchasing a Texas ranch this year, one reason stands tall amongst all the others, and that’s the benefit of living the Texas country lifestyle.
We covered this a bit in a previous blog post, but there are several advantages to living in a rural area on your own land. You get more privacy, more autonomy over what you do and how you do it, and you get the added bonus of being able to take in the beautiful Texas countryside without having to drive to a state park. You can literally live the lifestyle that city folk drive an hour of town to experience, all without ever leaving your property. The way we see it, that’s probably the very best reason of all.
Whether you’re looking to purchase property as a financial strategy, or just to take advantage of the simpler, idyllic lifestyle that comes with owning a Texas ranch, there are a litany of reasons to make 2023 the year that you finally pull the trigger on purchasing some Texas land property.
For all your Texas ranch buying and selling needs, trust the professional land brokers at Bownds Ranches. We specialize in ranches, farms, and large land tracts all across the great state of Texas. Let our team show you Texas, and you just might find that you’ll discover your dream property with us.