How Do I Know Which Land to Invest in?

Whether you’re looking to make money, build a home or enjoy the great outdoors, you may be asking yourself, “Is buying land in 2023 a good investment?”

There’s no right or wrong answer as to which type of land you should invest in—the decision should be largely based on your personal goals and preferences, such as whether you want to use your land for recreation, livestock raising, residential development or something else.

If you’re thinking about investing in land in Texas, you’re in luck. The Lone Star State is rich in diverse landscapes, including green fields, rolling plains and peaceful forests. From a financial standpoint, those who purchase land in Texas can expect gainful tax benefits regardless of how you choose to utilize it.

Types of Land You Can Invest In

Residential Development

If you’re turned off by the idea of living in a suburban cookie-cutter home, located in a densely packed and lackluster neighborhood, purchasing land to build your dream home may be an excellent investment.

An added benefit is that you can use this land as you see fit. For example, if your goal is to have more land than property, you can build a small home and utilize the rest of your land for recreation or agriculture (or both).

Commercial Development

Raw land can also be utilized for commercial endeavors. Perhaps your plan is to build a warehouse, mechanic shop or a shopping space. Buying land allows you to build a brand-new business from scratch at the location of your choice.

If you decide to invest in land for commercial purposes, be sure to carefully assess the location in terms of road access and city services, like access to water and sewer and waste services.

Farmland

With an increase in food demand and rising farmland values, investing in Texas farmland to grow and harvest crops and tend to livestock can be a great way to generate active or passive income.

Whether you farm yourself or rent your land to a farmer or rancher, you can expect reliable income. Additionally, as farmland steadily increases in value, you can expect to make a profit if you ever choose to sell your land.

Recreation

Lastly and perhaps most invigoratingly, you can use raw land for recreational purposes. If you’re frequently exhausted from living and working in a big and busy city, buying land can be a great way to escape the stress and hustle and bustle of big city life.

There are countless ways to use your land for recreational purposes. Some examples include fishing, camping, hiking, off-roading and horseback riding. 

Benefits of Buying Land in Texas

Property Tax Exemptions

Buying raw land in Texas may qualify you for certain tax exemptions, including:

• Wildlife tax exemption if your land is converted to wildlife management use
• Agricultural tax exemption for land that is being used for agricultural purposes
• Timber tax exemption if you own land for the purpose of growing and harvesting trees

These tax exemptions can help you save money by reducing your annual property taxes.

Writing Off Exemptions

If you use your land for farming in Texas, you can write off expenses you incurred as a result of farming, such as fertilizer, automobile upkeep and insurance.

To write off these expenses, you’ll need to file a Schedule F in your federal income taxes.

Great Way to Start a Business

Investing in land can be an excellent way to start the business of your dreams. Raw land gives you the opportunity to be creative and think outside the box, as you’re not restricted by the many rules governing land in cities and metropolitan areas.

For example, you can use your raw land to build and run a charming B&B, start a vineyard and produce homemade wine or set up a camping ground for hikers and nature enthusiasts.

Invest in Your Very Own Slice of Heaven in Rural Texas 

Are you looking for a peaceful and secluded area to escape the busy city life and retreat into nature? Do you spend your days longing for a personal oasis where you can immerse yourself in adventure and the great outdoors? If you’ve answered “yes” to at least one of these questions, consider making Ranger Ridge Estates your new home.

We have a limited number of five- to seven-acre home sites available for purchase. At Ranger Ridge, you can build your dream home and access the many benefits of the outdoor lifestyle, such as hiking, hunting, fishing and horseback riding.

To learn more about our community, book a tour by calling (817) 618-6773.