6 Reasons to Consider Buying Land in Texas



by Laura Mueller

The Lone Star State is known for a lot of things, including great barbecue, live music, and of course, vast amounts of wide open land. Buyers who are interested in buying land in Texas have a lot of benefits on their side, especially those who intend to invest in agriculture, timber, or wildlife preservation. So if you’re still weighing your options, here are six reasons to take the leap and buy some Texas land.

1. Diversity of Topography

Texas has it all: mountains, lakes, arable fields, cities, burgeoning suburbs…. Simply put, whatever your intentions are with your land purchase, you should be able to find a plot that will allow you to do it.

2. Population is Booming

If you’re looking for Texas land as a residential or commercial developer, then you’re in luck. The state is the fastest growing in the entire nation, adding hundreds of thousands of new residents per year. That means a lot of opportunity for any land investor who wants to put their money into housing, commercial building, or other consumer-facing developments.

3. Tax Benefits

Texas land owners who use their properties for timber, wildlife preservation, or agriculture—including pasture and grazing land—are eligible to qualify for a property tax exemption courtesy of the state. Farming land in Texas also qualifies for a Schedule F exemption on federal income taxes, which allows land owners to write off expenses for things like interest and improvements on the land.

4. There’s a Lot of Space

Everything is bigger in Texas, and that often includes the size of available properties. Outside of the population heavy metro areas are expansive tracts of land that may be ideal if you’re interested in investing in certain types of land uses that necessitate lots of space, such as recreation or residential development.

5. Unique Financing Opportunities

Texas has a number of special lenders who are specifically dedicated to financing the purchase of the state’s rural land. While it’s not a guarantee, if you do your research and connect with the right local lender you may be able to enjoy financial incentives on rural Texas plots, such as lower interest rates and less money down.

6. Farmers are Welcome

Texas’ population may be growing, but its use of farm land isn’t. Between 1997 and 2012, the state lost more than one million acres of farm land to other uses. There’s a need for private buyers to invest in the state’s agricultural and ecological infrastructure, hence the tax and lending incentives associated with these pursuits. If you want to farm, you’ll find plenty of opportunity and encouragement to do so in Texas.

There’s a lot to love about the Lone Star State, and that goes double if you’re a land buyer. If you’re considering buying land in Texas, there are a lot of good reasons on your side to do so. As always, just be sure that you work with a qualified real estate agent who has experience working in the specific market you’re interested in. This way, you can be sure to get the best possible deal on the best possible piece of Texas property.

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3 Texas Land Trends You Should Know About


Texas Land 2a

by Laura Mueller

Texas has always been a great place to buy land. The Lone Star State has a lot to offer land buyers, from acres upon acres of bountiful agricultural space to burgeoning cities with fast-growing industrial growth. But it has also been experiencing a rapid population increase in the past few decades that has had a marked effect on land values, ownership sizes, and more.

So what does land buying in the state really look like? If you’re looking to buy land in Texas—or if you’re just interested in potential future land purchase opportunities in the state—the following trends, courtesy of data from txlandtrends.org, should definitely factor in to your considerations.

  1. There’s a big difference in land values as you travel around the state

Texas has experienced a massive population increase, rising from 19 million residents in 1997 to more than 29 million residents today. And overwhelmingly, these new residents are situated in distinct high-growth areas. In fact, 87% of Texas’s population growth has occurred in just 25 counties.

The effect on land value is what you might expect: the price for land around those 25 high-growth counties has risen sharply, even as land prices in other areas of the state have leveled off. As of 2012, land in those counties averaged $5,266 per acre, compared to the state-wide average of $1,573 per acre.

  1. Fragmentation is changing the investor landscape

The rise in Texas’s population hasn’t just had an effect on land value—it’s also changed how land is divided up and sold. As more people pour into the state and more houses and recreational facilities get built, large parcels of land have been fragmented into smaller parcels. This fragmentation has meant smaller plot sizes for agricultural investors, with farm land being encroached on by residential developments. That’s not to say you can’t still make a good return on Texas agricultural land, but expect that in most of the state, particularly around those high-population areas, land sizes have gone down at the same time prices have gone up.

  1. Texas agriculture still isn’t slowing down

From 1997 to 2012, Texas saw a 9% increase in farming and ranching operations. That this has happened concurrently with both the population rise and the fragmentation of rural land suggests that there is still much to be gained from investing in agricultural property in the state, despite the noted effects of those factors on profitability. Texas continues to stand strong as a mainstay of the U.S. agricultural land market, and though the demographics of Texas are in a state of flux, it’s definitely too early to give up on the Lonestar State.

If you’d like to dig further into the data, check out the Texas Land Trends report from txlandtrends.org, courtesy of the Texas A&M Institute of Renewable Natural Resources, which allows you to easily view land trend data for select counties, regions, and river basins. Find something interesting in there that we missed? Let us know in the comments!

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