For most people, investing in hunting land is an unnecessary and costly expense. They would rather squirrel the money in stocks, crypto, and other assets. Such investors fail to understand the power of making solid investments, e.g., buying hunting property for sale.
Farmland and timberland have historically outpaced the traditional stocks markets. This is in terms of the returns earned on an investment. Hunting property makes for a good investment as it’s REAL. The same can’t be said for stocks, which are nothing more but a piece of paper.
A hunting property will have good planting soil, timber, and minerals all over. These are items that will continue to remain valuable. Additionally, a tract of land provides a good hedge against many economic factors, more so inflation.
Today, it’s impossible to enjoy nature and hunt if you aren’t doing so in a private tract of land. Peace and tranquillity aside, hunting properties attract many tax advantages. Many of these advantages are associated with ongoing timber management.
Why Invest in a Hunting Property?
Apart from the tremendous tax advantages and the privacy of hunting on private land, some reasons to buy hunting land include timber investment which has historically provided a better ROI than shares and equities. In addition to this, the land will continue to hold its value regardless of the years that pass by. Farmland and timberland can also provide annual income and reap excellent inheritance tax benefits. Another reason is that hunting property owners have a sense of pride and a feeling of freedom.
Hunting land is a safe and secure investment. Anyone who follows the equities market knows too well how volatile it can get. Its volatility can’t be helped, a fact that has seen investors lose millions of dollars each year.
On the other hand, land value has continued to remain steady and reliable since the 1980s. Keep in mind that this is during the Great Depression, when the stocks market crashed, leading to previously unimagined losses.
The value of land has grown 50-hold over this duration. Therefore, its value is less volatile and will continue to climb steadily, making it a better investment decision.
Leveraging Hunting Property Deals
You can always leverage hunting property. A savvy investor can take ownership by making small cash-down payments and paying for the rest using a bank loan. Provided the property has an income, it shouldn’t be too hard for the investor to offset the loan.
Another advantage of leveraging hunting land is that you get to make some money whenever its value goes up. For example, if its value rises by 3 percent, it will add 3 points to its overall value.
Investing in hunting land calls for one to assess whether it has any valuable commodities in it. Consider the productivity of its entities. Walk away if it doesn’t have much to offer from an investment standpoint.
Investing in Hunting Property—Factors to Consider
Just because the land is in the rural areas doesn’t mean it will appeal to hunters. There’re several important considerations to keep in mind before you can invest in a hunting property. Top primary concerns include:
- Proximity to Sanctuaries and Like-Minded Neighbours
The neighborhood or locality is among the most important considerations when looking to invest in a hunting property. Focus on counties bordering those with great reputations. For example, Fillmore and Winona counties in America offer the best value because the neighbor Houston County is renowned for whitetail hunting. Get to each tract and look at the management practices put in place by the landowners.
- Lay of the Land
The hunting property needs to look good. An ideal tract of hunting land should look when pitted against other local options. The best hunting properties have a habitat cover comprising 75 percent cover. And 25 percent Conservation Reserve Program/ tillable land.
The property should feature terrain relief with valleys and ridges to help it create a 3-D effect. Look for rough topography, as it will have more actual surface area for each taxable acre than flat land.
Often, the properties with full, convenient access are worth more than those with limited access. A hunting property should have more ways to access it, other than a dirt road. Dirt roads are the bare minimum.
The roads quickly become impassable during the wet seasons. Steer away from landlocked parcels, especially those that aren’t serviced by county roads.
Real estate is and will remain the best performing investment for years to come. The value of a hunting property doesn’t depreciate. Provided it’s well cared for, it should continue to offer good annual returns. Make sure you choose the right property and wait to reap the benefits.