South Texas Hunting Ranches – An Emerging Trend
South Texas ranches are increasingly mentioned as one of today’s best real estate investments. Hunting aside, successful ranch owners would probably give you 4 good reasons why owning a south Texas ranch has exceeded their expectations:
- High appreciation
- Low holding costs
- Texas is an economic partner rather than an adversary
- An enduring legacy to enjoy and to pass on to one’s family
2005 Texas Rural Land Market Summary By Charles E. Gilliland, Ph.D.
A History Of Solid Appreciation
Over the past 20 years, appreciation of Texas ranches has been nothing short of superb. In the past decade alone, top south Texas ranches have tripled in value, yet excellent acreages are still available for around $2,500 per acre. Market experts predict a continuous, steady growth curve as demand continually challenges supplies.
Low Holding Costs
A hunting ranch is cheap to hold and easy to manage. It’s almost shocking that property taxes on a 3,000 acre ranch are often less than $5,000 annually. While other real estate investments require hands-on management, maintaining a wildlife ranch can be infinitely easier (whitetail deer don’t break their rental leases).
Texas Is An Economic Partner, Not An Adversary
Texas is a state that seems to appreciate landowners rather than working to run them off. That’s because Texas views ranches as a diminishing historical asset and wants to preserve them. Texas offers generous agricultural exemptions for hunting and wildlife ranches (As mentioned, a 3,000 acre ranch typically pays less than $5,000 a year in property taxes). There are numerous conservation programs for wildlife ranchers to improve their ranches. On the federal level, ranches often qualify for 1031 tax-free exchange treatment to offset tax liabilities from the sale of other assets.
A Living Legacy
Investment aside, there’s a priceless intangible – the deep and enduring satisfaction we experience as stewards of a piece of American history. For many of us, a hunting ranch is a private sanctuary where the most enduring memories are built with family and close friends. For others of us, a hunting ranch is a legacy to pass on to our families to enjoy for decades.