When you buy recreational land like Hunting Ranch for Sale Texas there are so many benefits to being a landowner. Recreational land is used for recreational purposes like hunting, weekend getaways, fishing, ATVing, and more. Besides the financial benefit of gaining income and using the land for fun, there are other benefits. We’re going to list some of the benefits of owning recreational land in Texas!
Vacant land has tax benefits because the land is intended for recreational use and not buying and selling land like real estate investors. The hope is the land will appreciate in value. And when it comes to filing taxes, you’re eligible to deduct certain investment expenses as personal itemized deductions thanks to Schedule A.
One of the deductions includes interest paid on money borrowed to purchase the property. It could be defined as an investment expense, which lets it be deducted as an itemized deduction. But it’s important to note the annual deduction for interest payments depends on the investor’s net investment income for the year. To find the deduction amount you’ll subtract all of your qualified investment expenses from all of your investment income. For example, if you pay $1000 in interest payments and $500 in property taxes, you could deduct $500 of your interest payments since your net investment income is $500. Because $1000 in interest minus $500 in property taxes paid equals a $500 deduction.
The main purpose of purchasing recreational and hunting ranches for sale is for investing. And the beauty of this type of investment is not having to deal with tenants, home maintenance, or anything else that doesn’t directly benefit what you’ll use the land for. When you use recreational land for hunting or camping, then you only need to maintain it to that extent. Besides that maintenance, you’re able to use the land as you see fit. This makes it a great “hands-off” investment.
Speaking of investment, this is one of the most affordable long-term investments. Compared to buying a home, there are no mortgage payments (depending if you took out a loan), no utility bills, and property insurance and maintenance are a low cost. Plus, hunting land for sale in Texas is relatively cheap and you’ll see it appreciate in the years to come. Land is always a valuable investment since it’s a natural resource that can’t be replicated like houses. So it becomes a limited quantity, which is why it’s a great long-term investment.
Plus, not only is it a financial investment, but it’s an investment in your future and your happiness. Now that you have a reliable ranch accessible whenever you want, you can do those outdoor activities you love. And bring your friends and family along for the fun! It’s a great spot for a family vacation if you’re able to unplug and be in nature. Lastly, since it’s your property, you’ll save money on camping, hunting, and fishing fees.
Interested in investing in a hunting ranch for sale in Texas? Contact Ekdahl Real Estate!
Texas has almost 300 days of sunshine and it would be a shame to waste those days indoors! When you have your own hunting ranch in Texas, you can get outside more since you have a reliable location to go to whenever you want. Whether it’s hunting, camping, fishing, hiking, or ATVing, you’ll be in the great outdoors. Time reported in 2019 that “spending time outdoors, especially in green spaces, is one of the fastest ways to improve your health and happiness.” Some of the side effects of being outside include lower stress, blood pressure, and heart rate.
Are you ready to get outside more for the rest of the year? Cash in on this benefit and many more when you buy hunting ranch for sale in Texas! Contact Ekdahl Real Estate to discuss your land needs and how we can help you.
