Do you want to invest in North Texas real estate? If you haven’t considered investing in equestrian properties and farm lands, here’s why you should.
- It’s a relatively simple investment
An equestrian property is a relatively simpler and more straightforward investment compared to other schemes within and outside of real estate. There will typically be a fixed number of equine properties in any given area unlike multifamily properties for instance, in which supply and inventory is constantly shifting as buildings are torn down and new ones constructed.
- It’s a stable source of income
Equestrian properties tend to be a stable source of income for investors. These properties serve as a place for training and recreation for equestrians and horse lovers, providing a steady source of income. Horse owners and breeders may also rent the stables for their horses, presenting another opportunity to generate steady income.
North Texas, in particular, has an active equestrian community, which presents a large and potentially lucrative market to property investors looking to lease their land and open their facilities to both competitive and recreational equestrian riders.
Moreover, any revenue generated from equine property is generally considered non-volatile since property owners with high tenancy rates are less likely to experience shortfalls in income.
Likewise, long term leases help protect property investors from the volatility commonly experienced with commercial property investments.
- It’s less likely to depreciate
Farm land and property value appreciation can potentially yield a high return for investors. Historically, farm properties generally outperform investment vehicles in the stock market and commercial real estate. At the very least, equestrian land will retain its value fairly well with minimal upkeep.
- It’s likely to be an effective inflation hedge
Farm land is generally considered an effective inflation hedge for investors, which means that it provides protection from inflation or the decreased value of currency.
Historically, farm properties have shown a positive correlation with inflation – farm land value typically increases faster than inflation rate rises. This makes farm land more favorable to investors than other investment vehicles.
- Horses are exempt from sales tax
According to the Texas Comptroller of Public Accounts, sales of agricultural items like horses, mules, and cattle in Lone Star State are exempt from tax regardless of who is buying or how the said items will be used. The same goes for water and food for ranch animals (i.e. hay, oats, deer corn, chicken scratch) are also not taxable.
For sales tax purposes, Texas law defines a farm or ranch as property that is used wholly or partially in the production of crops, livestock, and other agricultural products to be held for sale.
Contact Sarah Boyd & Company to discover the best equestrian communities in North Texas. You can reach us here. You can also get in touch with us at 2146.494.403 and Sarah(at)SarahBoydRealty(dotted)com.
As a top agent, I specialize in equestrian properties in addition to luxury real estate and acreage in and around North Texas. I’d be happy to help you locate your next investment.