The Costs of Owning a Ranch
The prospect of owning a ranch can be both exciting and daunting. There is much responsibility, along with the reward of investment. The upfront cost of purchasing a ranch is just the beginning. Once the land is yours, you are responsible for upkeep, development and most importantly, the costs.
Your initial investment depends on location and acreage. Purchasing ranch land, depending on how many acres you want, can be an affordable option. Prices can range from a few thousand dollars to millions. Financing makes it more affordable, based on your terms.
The costs of owning a ranch don’t end there. Although a good investment, getting caught up in the fantasy of being a rancher can be harmful if you aren’t informed. You need a plan for what you want to do with the ranch, which will of course incur more cost.
Developing Ranch Land
It’s exciting to be part of the dream that many have had for years. Once it is yours, what should you do with it, and what will it cost you? There are several options when developing ranch land, and each of these comes with its own set of costs, which include:
- Operational/working ranching – This includes agricultural use, such as ranching livestock or growing/developing goods. You have to figure in the cost of purchasing livestock, feed, preserving the land for continued use and more. Whether you’re part of the operation or not, you will need to hire help to operate and build facilities to house animals, workers and family if you plan to live there.
- Recreational/dude ranching – The cost of developing a recreational ranch will depend heavily on its use. A resort will need lodging, hired help, upkeep and beautifying of the land and buildings, different amenities based on the level of the resort from low- to high-end, recreational activities such as stocked lakes, amusement and other activities for guests.
- Boutique ranching – This is a combination of ranching types and will incur both costs of owning a ranch.
Land, of course, appreciates in value, but the continued costs of owning and maintaining a ranch can be considerable. You also have to factor in your yearly tax payments.
The Brooks Companies have been in business selling ranch land for over 40 years and can help you find that perfect piece of land to make your dreams of ranch ownership a reality.