Ranch life taps into the American desire for space, freedom and a connection with the land. And ranches have always had a spot in wealthy investor portfolios because of the potential for steady gains.
Most consider this a safe place to park money and a great hedge against inflation. You can “touch and feel” a land asset while using it as a tranquil place to take your family and friends to escape the city life and get back to nature.
Land is always a good long-term investment that can yield significant returns when the natural resources are managed. It is an investment that you can use and enjoy. Land is not volatile like the stock market, so buyers feel land is a safe and useful investment – something they can take advantage of daily and create memories with their families and friends. Moreover, many investors defer tax consequences when selling by utilizing 1031 exchanges, making this type of investment very appealing.
Because Texas, and DFW in particular, has become the emerging international gateway and marketplace, investing in the Texas land and secondary home markets offers a consistency in security and solid return on investment that other markets and assets do not. With land or a second home, you can touch it, use it, rent it and derive other revenues from it. Land in Texas can appreciate at roughly 5-6 percent a year or more. That’s a very safe and solid investment.
Generally a long-term investment, ranch, land or a second home can provide enjoyment of ownership, a place to relax, tax benefits, potential income and capital appreciation. Over the years, family and friends can enjoy the ranch or a second home.
As a hard asset, real estate stores value and has been one of the best hedges against inflation. While Texas offers abundant opportunities, owning international real estate provides diversification, an income in a foreign currency and is another great hedge.
Click here to see the latest in real estate news. President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with offices in Dallas, Fort Worth, Uptown, Lakewood,Ranch and Land, The Ballpark and Southlake.