Buying land can be a lucrative and valuable venture if you play your cards right. But, depending on where you buy said land, there can be a variety of different factors to take into consideration. Some of these may heavily influence your decision to buy, depending on how you intended to use your land, where it’s located, and other factors.
In case you’re looking to purchase some land in Texas, let’s take a look at a few variables specific to the Lone Star State that could have some significant sway over your final decision.
Considerations When Buying Land in Texas
1. Groundwater Restrictions
Nearly 70% of the land in Texas is classified as a subsidence district or a groundwater conservation district. This means that there are very specific limitations on how you can use and impact the groundwater if you happen to purchase land for sale in one of these districts.
There’s also a stipulation within the law that exempts a seller from culpability if these restrictions are violated, as long as they had no knowledge of them. So, do your research.
2. Abundant Tax Exemptions
Texas offers tax exemptions for rural land used for wildlife conservation, timberland conservation, and agricultural purposes. If you intend on simply holding your land to use it for hunting, fishing, farming, or recreation, for example, you could be able to get in on these tax exemptions. Such exemptions could reduce property taxes for land buyers by thousands per year.
3. Texas is Farmer Friendly
If you want to use your land for farming, you can file it as a schedule F when you fill out your income taxes. Doing so allows you to write off the interest on loans you used to finance the property, as well as interest on loans for new construction on the property. Other farming-related expenses can also be written off.
4. Financing is Very Available
Banks have a bad habit of denying financing for land because they’re often incapable of determining its potential value. However, there are plenty of land-financing businesses in Texas, as well as individual sellers willing to finance buyers directly. These makeshift financing options offer affordable rates and have made it easier for those unsure of how to buy land in Texas.
5. Ease of Development
When it comes to developing your rural land, it’s a lot easier for a land buyer in Texas than it is in most states. Because Texas is so massive and known for a small-government approach to its internal affairs, you don’t need to jump many hoops to develop rural land in Texas. Permission from your local county subdivisions and surrounding municipalities is usually all that’s required.
Buying Land in Texas is Low-Risk, High Reward
If you’re looking for a safe investment with a high upside and plenty of financing options, buying land in Texas is the move to make. Not only is it easy to develop your land, there are tax exemptions a-plenty and only a few things to watch out for, such as groundwater conservation restrictions.
If you're a hunter, fisher, farmer, or even just a businessman, there’s plenty of money to be made off of rural Texas land properties.
