“The best investment on earth is earth.” – Louis Glickman
While Texas is certainly well known for its sprawling landscapes and vast land, most people who consider investing here likely lean more towards the large cities like Houston, Austin, Dallas and San Antonio. What most people don’t consider, and where they are missing out, is investing in the land outside of these major hubs.
There are various aspects of rural real estate and a plethora of possibilities. The land around us can be used for personal homesteads, residential, commercial, or industrial development, farming and agriculture, hunting and recreation, timber management and so much more. Often in Texas these properties benefit from no zoning, limited or no deed restrictions and much less stringent permitting requirements. Often, these properties will even come with, or have the possibility to implement huge tax benefits in the form of Agricultural Exemptions, Wildlife Exemptions and Timber Exemptions. That combined with what are typically significantly reduced insurance costs for unimproved property make the holding costs of rural land very attractive to investors and owner occupants alike and a great place to “park” some money.
Lower holding costs can be combined with the potential for income generation as well. Many properties can assist in providing cash flow through lease opportunities such as grazing leases (leasing the land to farmers to run their cattle), hunting leases and pasture leases (hay production). Land can also be used for timber development and sales. When you take into consideration that rural land is also often a hedge against economic volatility, all these factors make the idea of purchasing outside the city very attractive. Consider that during the 2008 recession, Texas rural land prices only declined by an average of less than 8% and by 2011 were quickly on the rise again!
The population growth in Texas has been among the top few states in the country for the past 10 years. The cities, as we all know, are growing rapidly which comes with significant price appreciation on urban properties. That in turn is driving many people further into the country. Many are also moving to Texas with the intention of living in the country where life offers a peaceful and quiet atmosphere and a slower lifestyle. These factors contribute greatly to strong appreciation in rural markets and are expected to continue for years to come.
If you have any questions or would just like to chat about the possibilities and opportunities available in rural real estate for you specifically, please don’t hesitate to reach out at your convenience!
- Jordon Russell