Land is regarded as being one of the most valuable resources you can own. Recently, Tesla proclaimed that they were moving their plans for a mega factory to Texas for several reasons. With the numerous benefits you stand to gain by purchasing land in Texas, it comes as no surprise. The benefits become even greater when it comes to purchasing land in the Central Texas hill country. If you have been considering the possibility of investing in land, here are some reasons why you should strongly consider the Texas hill country.
1) Resource Scarcity
As large as the area may be, purchasing land in Central Texas is regarded as a high-value investment. This is because people don’t create land anymore and can only provide what already exists. Based on the limited supply of this resource, demand for land will continue to rise year after year. In fact, statistics show that land only stays on the market for an average of ninety days before it is acquired. Therefore, purchasing a piece of land in Texas will provide you with a natural resource that has limitless potential, high demand and virtually no depreciation.
2) Financing Specialists
The average person does not have enough capital to buy land in one single payment. Therefore, most people seek help from a financial institution when it comes to buying land.. Most banks and traditional lenders, however fail to understand the rural land market. This means getting financed by a bank or lender can prove to be difficult., When it comes to purchasing rural land in Texas, however, you will be able to utilize lenders who specifically focus on providing finance for the development of rural land in the state. Some of the most well known financial companies in Texas that focus on financing rural land purchases are land owners and farmers themselves, as they have a thorough understanding of the challenges and needs of individuals who want to engage in agribusiness.
3) Asset Security
Land is a very secure investment because it is categorized as a “non-depreciable” asset. What this means is that land has an unlimited useful life. In fact, land is the only type of asset as to which depreciation is prohibited. This is because land cannot be moved or destroyed. Even if a third party builds a residential property on it, while the home can depreciate over time, the land underneath could actually increase in value over the same period of time.
4) Tax Exemptions
When you purchase land in Central Texas, you may be eligible for an agricultural, timber or wildlife tax exemption. These tax exemptions can help to reduce your property taxes by thousands of dollars. These types of exemptions are given to landowners in Central Texas that plan to use the site for grazing and pasture land, agriculture, wildlife preservation and timberland. In addition to this, you can also file a Schedule F on your income taxes if you plan to use the land for farming. By filing a Schedule F on your taxes, you will be able to write off expenses associated with interest on the loan you used to acquire the property.
5) Expert Real Estate Agents in the Area
Taking all of these factors together, land in the Texas hill country is looking more enticing than ever. This allure is no secret, however, as many investors and developers are already hopping on this opportunity and securing themselves a piece of the pie. If you’re even considering Central Texas land as an option for your next investment, consult with the local real estate experts at The Damron Group REALTORS©. Our knowledge of the area will help you to make the best decision as you move forward with this exciting venture.