12 Surprising Benefits of Buying Recreational Land in 2023
Looking for a new investment opportunity? Have you ever considered buying recreational land, but hesitated because of the price and hassle that can come along with such a purchase? If you’re considering making an investment in recreational land for your leisure activities or even for future financial benefit, now may be the perfect time to do so. With 2020 behind us, 2021 has seen incredible growth in the housing market which has made buying recreational land more affordable than ever before. In this blog post, we’ll explore 12 surprising benefits of owning recreational land in 2023 that could make any hesitant buyer reconsider their options! Read on to learn more about why investing in this kind of real estate can be beneficial both now and in the long-term.
There are many benefits to owning recreational land, and in this blog post we will discuss 12 of them. Whether you're looking for a place to relax and escape the city life or you're interested in investing in property, recreational land is a great option! Keep reading to learn more.
1. Investing in Recreational Land Goes Beyond a Financial Return
Investing in recreational land goes beyond a mere financial return. In addition to the potential financial gain, owning recreational land gives people the opportunity to connect with nature and learn more about themselves. No matter what activities you choose, ownership can provide a means of stress relief and reinvigorate the soul by experiencing all the wonders that nature has to offer. Whether it's fishing for rainbow trout in a peaceful mountain stream, exploring an abandoned mine or just taking time to watch the sunrise over your own backyard, owning recreational land offers some of life's greatest moments. It also provides an opportunity for families and friends to withdraw from their busy lives and reconnect with nature together; creating lasting memories that bring everyone closer. For those who are interested in making an investment with long-term rewards, investing in recreational land offers something few opportunities can match—a lifetime of joy and contentment.
2. Recreational Land Provides Tax Deductions
Did you know that there are tax advantages to owning unoccupied land? You should be aware of the various things that can offer financial advantages if you're considering investing in vacant land to utilize as recreational land. The acquisition of undeveloped land does not instantly generate revenue. In reality, it frequently results in a cost.
Property tax and possibly a few other carrying costs must be paid (maintenance, HOA fees, etc). In some cases, you might be eligible to deduct these expenses. As a real estate investor, you would not be in the business of continuously purchasing and selling vacant land when you invest in recreational land.
Instead, you'll probably keep this recreational land in the hopes that its value will increase as well as for your own personal usage. You are allowed to claim a specific amount of investment expenditures on Schedule A as personal itemized deductions when filing your taxes. These costs qualify as conventional tax deductions, which reduce your taxable income at your standard income tax rate. You may also qualify for an itemized personal deduction for the interest you pay on loans taken out to buy unoccupied land because it is regarded as an investment expense.
Future years will receive the extra money.
Consider the scenario where you annually pay $500 in property taxes and $1,000 in interest on your recreational land. Your savings account's interest yield of $1,000 is your sole investment income. Since your net investment income is $500 ($1000 in interest on your savings less $500 in property taxes paid on your investment property), you would be entitled to deduct $500 of your interest payments.
3. A "Hands-off" Investment May be Possible.
Recreational land is a "hands-off" investment in many ways.
There are no tenants, grass maintenance, leaking roofs, burst pipes, or other issues that aren't directly related to how you'll be using the land. You could now decide to include some of these features, which would necessitate spending money on upkeep. Yet, if you intend to camp or hunt on your property, you will only keep it up to the level that is necessary.
Beyond that, you have complete freedom to live your life and utilize your land for enjoyment as you like.
4. Expanding Your Outdoor Options
With the days getting longer and warmer, why not challenge yourself to learn something new or explore a different outdoor activity? Whether it’s trying your hand at rock climbing, white water rafting, or even hiking up a trail you’ve never been on before, expanding your outdoor options can be a great way to benefit both your mental and physical health. Not only will it give you the opportunity to discover new places and activities, but tackling something unknown can also help foster personal growth and give you a sense of accomplishment. So when the weather gets nicer, seize the day and try something new!
5. Recreational Land is a Valuable Resource
Because it is a vital natural resource that will never be replenished, land is always a wise investment. Although most people don't consider bare land in this sense, it is true that it is quite valuable due to the restricted supply. You can't just "grow" additional land, after all. Others will want it when there are no more available to purchase because it is a limited resource.
Hence, by buying it, you're positioning yourself in a long-term advantageous position.
Not only will you buy something you'll enjoy and use for amusement, but you'll also keep it as an investment for a while.
6. You May have Timber!
You might be surprised to learn that some people purchase recreational land from timber firms. This is due to the fact that timber firms hold thousands of enviable acres of property around the nation. If you decide to purchase from one of these businesses, there are a few things you should be aware of. In the future, you might still be able to make money from lumber.
Before making a purchase, inquire as to whether the company's wood specialists can assist you in creating a long-term recreation plan for your rural property (factoring in your expected cash flow from timber harvesting).
Be sure the timber company you work with has a history of selling to recreational customers. This is crucial since you want to ensure that your title is valid and appropriately describes all the timber on the land.
To assist you avoid some of the difficulties that come with this procedure, you may also engage with a local real estate broker who specializes in recreational real estate.
Your recreational land's ecosystem could be impacted by a forestry firm that doesn't provide high-quality timber. This implies that even if the business leaves and you acquire ownership, the wildlife and recreational opportunities on the land will be negatively harmed. A reputable timber company will cultivate wood in a
Speaking of soil, know that timber, soil, and terrain are widely different in different parts of the country. It’s wise to speak with local experts on how a timber company has treated each if you’re going to buy land from them. This will ensure that your investment has been taken care of, and you’ll be able to use the land for everything that you want to use it for.
7. Providing Great Discretionary Time Opportunities
Discretionary time is an important part of a productive and fulfilling day. Allowing employees to have the opportunity to take a few extra minutes for themselves can make a big difference in their day-to-day motivation and productivity. Providing great discretionary time opportunities is essential for businesses that want to create an engaging and positive work environment. Discretionary time can range from small five-minute breaks taken throughout the day, to larger half hour chunks during lunch or at the end of the workday. Different workplaces may benefit from different types of discretionary time breaks depending on their particular needs—but no matter which type they choose, providing these opportunities will give employees the freedom to take care of themselves and be more productive in the long run.
8. Recreational Land may Offer Rental Opportunities
On your recreational property, are you thinking about renting?
Rentals (in whatever form) might assist generate extra revenue, whether you buy the land with the intention of renting it to others right away or over time.
If you utilize your property as a campground, for instance, allowing other people or families to use it in exchange for a small fee may be financially advantageous.
Don't undervalue the benefits of using recreational land for your benefit.
You can also use your land to generate a small profit while still using it for your own purposes through activities like hunting, ATVing, fishing, using sports fields, and more.
Of course, you may need to take into account additional costs associated with renting out your land.
Will a property manager be necessary?
Will you only have seasonal rentals available?
How much upkeep will be necessary for your rentals?
Will this aid in your financial gain?
Will it have an effect on your taxes?
Consider your options and see whether you can profit from your unoccupied land. In the long term, it will be worthwhile.
9. Reaping the Rewards of Being Close to Nature Many of us have become disconnected from nature due to modern life. Yet, by taking a step back and connecting with the natural world around us, we reap incredible rewards! From improving mental health and calming stress levels to reducing blood pressure and strengthening our immune systems, spending time outdoors – whether it's in a park or simply our own backyard – has numerous benefits. What's more? It is free! Nature has an endless array of offerings just waiting to be tasted, so why not give yourself the chance to enjoy its healing power? You won't regret it!
10. Enjoying Opportunities for Educational Experiences
Education is an essential part of any successful life as it increases our knowledge and widens our perspectives. It has never been easier to take advantage of educational opportunities, from online classes and tutorials to immersive city programs. Learning something new can be both challenging and thrilling, allowing individuals to discover new interests, explore career options, and open up their minds to a world of possibilities. No matter where you are in life or what your background may be, there is always something to gain by taking the chance to enjoy some educational experiences. Take the time today to uncover that learning experience that calls out your name and inspires you—you won't regret it!
11. Accessing Benefits of Wildlife Management Programs
Accessing the benefits of wildlife management programs can provide numerous advantages to both individual humans and larger communities alike. Examples include providing safe and suitable habitat for various animals, protecting biodiversity, producing a more balanced environment, and establishing sustainable practices. Wildlife management also provides ecological services such as water purification, tree planting as well as natural pest control. This can help to revitalize ecosystems while simultaneously providing recreational opportunities such as hunting, fishing, bird watching or simply observing wildlife. Such programs strive to ensure that all living creatures can benefit from its appeal while also promoting conservation efforts that will support the longevity of the environment and those who live in it.
12.It has the Power to Ensure Joy in YOU!
Camping, fishing, hunting, ATVing, hiking, and other outdoor activities are all done on recreational land.
If you buy recreational land, you'll have access to these activities whenever you choose if they're among your favorites. Going outside also improves your health and happiness.
Owning recreational land can help you create a legacy that can be passed down from generation to generation. Furthermore, it can benefit both you and your family for years to come. With the right investments, you could have the opportunity to access nature’s beauty and peace of mind in addition to enjoying time outdoors with friends and family. Not only does buying recreational land offer monetary returns, but it also gives you the chance to enjoy amazing outdoor opportunities, as well as educational exciting experiences. As a result, you can learn about land management techniques and other topics related to wildlife management programs. Therefore, investing in recreational land is much more than just a financial return – it’s an investment in precious memories and lasting legacies that you or your heirs will be able to cherish for years to come.
JACOBS & CO. REAL ESTATE, LLC.
12923 Fitzwater Dr. Nokesville, VA 20155
(703) 594-3800 | jacobsandco.com
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