As one of the less volatile physical investments you can make, investing in land gives you the opportunity to draw a passive income without having to do very much in return. A few of the ways you can bring in revenue from your land investments include:
Perhaps one of the easiest ways to see a tangible return on your land investment is to charge hunters or campers for the right to use the land. Depending on where you purchase your piece of ranch land, there may be certain restrictions as to the number of harvest tags non-owners can receive. If you do not plan on hunting yourself, this number may be higher, giving you the chance to offer up your land to several different hunters.
Those who want to either camp primitively or park an RV/camper on your land will usually end up paying less than a hunter, but you have the chance to make up for it in quantity.
If you plan on using your land as a vacation or retirement property at some point in the future, you may want to think about building your dwelling now and renting it out. Property management companies can take care of everything from finding clients to basic maintenance while they just send you a check every month. Anytime you want to use the property, let the management company know and they will be sure not to rent it out during that time.
Micro-scale ranching operations can be found in an area as small as 20 acres and may only involve a handful of cows. Renting out your land to someone interested in raising a few head of cattle can end up putting a few dollars in your pocket without significantly raising your property taxes.
Buying a piece of ranch land now can allow you to get the most out of your land investments for the next few decades. While there is no guarantee that land prices will go up, history has shown that over time, the cost of buying a piece of property does tend to rise. Locking in a good price now lets you get the highest possible return on your investment if you do want to sell, or you can choose to keep the land and build on it in the future.
For more information contact Brooks Ranchland at 1-877-468-9802.