Land is a tangible asset that is affordable than most real estate investments and produces significant pay-off in the long term. Here are five other benefits you can enjoy when you invest in land.
- Hands-off and remote property management
- Agricultural tax provisions
- Open space provision
- Potential and flexibility
- Long term appreciation
Property management is a full-time job, and not everyone is up to the task. For this reason, owners turn to professional managers to handle their properties.
With vacant land, however, property management is the least of your worries. As it only needs minimal maintenance, vacant land does not need hands-on management and can be left alone for long periods of time. As a result, you will not have to spend time minding the land or spare no expense to hire a professional manager to run it for you.
Should you decide to use your land for agricultural purposes, you can avail agricultural tax provisions as well as exemptions in Texas.
Here in Texas, agricultural and open land have a lower appraisal rate than other types of real estate property. Agricultural land are also exempt from paying certain sales and use taxes, specifically on farm inputs and outputs, specialized vehicles, and fuel.
Due to the agricultural tax benefits, it is not uncommon for landowners in Texas to lease their land to local farmers. Aside from the tax savings, this also allows them to reap additional income.
Aside from agricultural tax provisions, Texas also grants property tax benefits for agricultural, open space, and conservation land. A special value is assigned by the state government to these properties based on their productivity.
If the land you choose own fits the standards of use and other requirements, you can enjoy the benefits of the open space provision. In 2015, the projected savings from open space valuations amounted to $2.95 billion.
Vacant land is like a blank canvas. Stretched out before you is an endless sea of possibilities.
In your own time, you can build your dream house or retirement home in this plot of land. If it falls within local building and zoning codes, you can choose to develop your own commercial property especially as growth and progress comes to the area. You can also choose to make the land productive by turning it into a horse property or a working farm.
As long as your plans fall within the limits of local codes, owning land gives you flexibility and a wide variety of options to choose from.
Raw land does not require periodic improvements in order to sustain or grow its value over long periods of time. You can leave it as is however long you want to and it will retain its value. Force majeure, such as earthquakes and erosions, are the only things that can make land lose some of its value.
The best land for sale is in North Texas