To buy… or not to buy…land? Is that the question? Yes, that is the question for many speculatively savvy investors these days. With increasing concerns about the possibility of recession, dissatisfaction over recent performances in the stock market and a certain end to the inflated numbers of the housing boom, investors are looking for places to put their money that are not as uncertain as the formerly popular stereotypical investment.

To know what one needs to look for in purchasing an ideal land investment, one must first know what the land will be used for. Different types of investment uses include but are not limited to ranching, agricultural use, recreation and development.

Land that is going to be used for ranching has only a few basic necessities. Know how much livestock the land will sustain without additional feeding before putting animals on the land. If you don’t know the answer, talk to other experienced ranchers and take their advice to heart. Water availability is a must for any animal to survive, so make sure there are either enough ponds or access to rural water. Wells are another possibility for providing the rancher’s needs.

With recent increases in the use of bio-fuels and the resulting record prices of corn and wheat, farmland has been increasing in value and more investors are purchasing agricultural property. http://websoilsurvey.nrcs.usda.gov is an online resource made available by the United States Department of Agriculture’s Natural Resources Conservation Service that can assist is determining a land’s suitability for various crops. Even though many investors are not farmers, leasing their farmland out to others is always an option.

From the investment perspective, recreational property tends to be one of the most speculative and lucrative uses of land. The value of recreational property is not determined by any set standard other than what someone else is willing to pay to enjoy it. Primary forms of recreational land use include hunting, fishing, camping, picnicking, even looking for arrowheads. Depending on the use, recreational enthusiasts tend to appreciate natures many characteristics such as hardwood tree, ponds, creeks and rivers and wildlife. Particulars to pay attention to when purchasing recreational property include looking at distances from major towns as well as access to water and electricity.

Then there is land that is purchased for the purpose of development. Primary assets to look for in property that will be used for development is improvements. If water is not provided by a local water system, research the possibility of drilling a well. Type of road frontage also becomes an important factor when thinking about developing land. Although we live in Texas, not everyone has a heavy duty 4 wheel drive truck like I do and so whether the road frontage is paved or gravel will be important to a lot of buyers. When there is road frontage on two or more sides, the ability to easily subdivide the property increases investor’s options.

Anytime land is going to be purchased for an investment, attention should be paid to the surrounding areas. Nobody wants to own land next to a dump or other types of poorly maintained properties. If the land is just outside a thriving suburban area, development could be heading your way in a few years and increase the value of your land. Land often has two or more of the uses mentioned above and makes for a very interesting investment.

If you’re thinking about investing in land, give us a call here at Legacy Land & Ranches we would love to help. I personally specialize in properties 1,000 acres and up and won Top Producer for our office for 2007 with more than $10,000,000 in land sales. I have the experience and the technology as a Broker Associate to assist in facilitating a great investment.

For educational articles on land sales in Texas visit http://recenter.tamu.edu/data/datarl.html for excellent information from Texas A&M’s Real Estate Center

Article by David A. Harris, Sr.

©David A. Harris, Sr.