Benefits of Owning Private Ranch Land in Texas
“Benefits” of owning private ranch land in Texas are much more than the amazing sunsets, rolling green hills, or majestic landscapes that private ranch landowners in Texas get to enjoy.
We don’t need to sell the natural beauty that comes with owning Texas farmland… it’s self-evident to anyone who’s ever seen it. Instead, we’re going to talk about benefits like the financial advantages and special freedoms that come with owning a ranch in Texas.
Tax benefits for owning private ranch land in Texas:
Texas ranch land may qualify for wildlife or agricultural and timber exemptions. These exemptions can reduce your property taxes by thousands. Exemptions are given for land used for agriculture (e.g. pasture and grazing land), timberland, and wildlife preservation.
If you use your ranch land for farming, another financial advantage is that you can include Schedule F on IRS form 1040 to write off expenses accrued. This includes interest on loans taken out to purchase land! If you decide to build on your property, you may also be able to claim the interest on the construction loan in your federal income taxes as well. These tax savings reduce the true long-term costs of a ranch in the long run.
Freedoms that come with privately-owned Texas ranches:
Metro areas and most suburban developments don’t let you develop your property how you see fit. They tend to enforce strict zoning laws. The strict regulation and oversight limit what you can do with your land (which ultimately determines the value of your ranch land).
However, with Texas ranch land there is a much higher degree of freedom for what you can do with your property. In most cases, you only need to get approval from the local authorities to develop your ranch as you see fit. Texas ranch land can be farmed, lived on, developed into Bed and Breakfasts, set aside as hunting preserves, or made into campgrounds. You’re only limited by your imagination. Owning private ranch land in Texas doesn’t just give you a beautiful piece of property. It gives you a place for your vision to actualize. It’s also a solid investment that can grow your wealth over time.
What about the drawbacks?
Some people think that ranch property comes with headaches, but the process is similar to any real estate deal. A common concern we hear:
“How do I get utilities and electrical service to my ranch if it’s tucked away from crowded areas?”
Don’t worry. You can get utilities on your land. You’ll need to find out who the local utility provider(s) are in your area for an estimate. It’s not a problem that you will have to move mountains to solve. To get water on a remote property, you will most likely need to drill a well. Again, it’s been done on plenty of Texas ranches before, so you won’t run into new problems when you go to drill on your ranch.
What’s more important is to find the right piece of land that gives you the freedom and financial incentives you need to live like you want to.
The searching and buying process runs smoother when you work with professionals that can find the Texas ranch land you’re looking for. Don’t hesitate to reach out to find out more.