TEXAS LAND:  WHY INVEST?

For many investing in land has been a path to security and creating wealth.   Historically land has been a sound asset for assuring diversification of an individual’s investment portfolio.

Texas has always provided countless opportunities for those with aspirations of land ownership.  With over 95% of the land in private ownership, Texas is a private land state.  This is three times more acres than any other state.

The Benefits of Buying Land in Texas

  • Growth Potential:  Texas currently is experienced rapid population growth at a greater rate than any other state in the country.   Currently three (3) for the ten (10) largest cities in the United States; Houston (4th), San Antonio (7th), and Dallas(9th) are located in Texas. Nearly 142.7 million acres make up the state’s rural land market. This equates to about 83 percent of all Texas land.
  • Potential Future Appreciation: Historically Texas land has experienced long-term growth, making land an outstanding investment option for those seeking a long-term growth.  The continuous growth in the state’s population and the finite supply of land available can drive up the value of land in the future.  As they say; “they are not making any more of it.”
  • Income Creation: Investing in land can create additional income streams, strengthening economic security. Land provides options that can be utilized, for instance leasing for agriculture, timber, mineral mining, and/or commercial development. Land not only provides value but also the possibility to generate additional cash flow.    Income generated from land can provided for expenses, help fund other possible investment, and create additional income.
  • Inflation Protection: Being an asset with inherent value, land can weather rises and falls in the economy and retain its value over time.  Land, unlike some other assets that might lose value due to unpredictable markets, offers asset stability and can act as a hedge against inflation.
  •  Low-maintence Asset: Land is nothing like investing in residential and commercial properties, land requires minimal upkeep expenses.  Land can be left untouched and still retain its value.  Improvements can be added for both recreation and income generation that will enhance the future value of the land.
  •  Diversification of Portfolio Assets:  By investing in land investors can lessen risk and possibly boost their returns.  Investments in land provide an additional asset category that usually changes independent of the stock market and other types of investments.  This diversification can reduce the risk exposure of an investor’s portfolio and impact their long-term financial well-being.
  • Consistent Appreciating Asset:  In most cases land doesn’t depreciate.  Land is a finite resource so there is only so much of it.  Stocks, bonds, and other real estate assets often fluctuate in value, historically land has held and, in most instances, increased in value.  Because of this Texas land should be considered to be included in your investment portfolio.

 Investing in land is an effective strategy for boosting financial security and building long term wealth.  Investing in Texas land is an exceptional strategy because of present and future population growth, a strong and diverse state economy, natural resources, potential agricultural opportunities, and well…………it’s Texas!

 “Don’t wait to buy land, buy land and wait. Find out where the people are going and buy the land before they get there.”  — Will Rogers

 

Ranch Connection is a full service Land and Ranch Real Estate Brokerage established in 1984.

If we can assist you with selling your ranch/land please contact us at cynthia@ranchconnection.com

Please visit our website at www.ranchconnection.com

By:  Dave Norris – davenorris@ranchconnection.com