Created on Saturday, November 15, 2014
Updated on Monday, February 26, 2018
by Land Century
Why All the Interest in Buying Land for Development Purposes?
Since the rise in concern for safety, and the increased interest in getting back to a simpler time, and learning to enjoy life, people have looked toward vacation homes, in their own home of Texas, as the answer. They see these places as a peaceful alternative to going on vacations at resorts and busy tourist destinations. It should be noted, however, that the amount of vacation homes being purchased has been rising for some time, even before the terror attacks of 2001 caused people to worry more about their safety in the more populated parts of the world, and other countries.
Another common reason for people to buy Texas vacant land for a second home is investment. Adding diversity to investment portfolios is one of the most cited reasons that people look for a second property to buy. With interest rates becoming more favorable, people are more easily able to afford buying a second home. With property prices steadily rising, real estate is viewed as a more safe option for investment, compared to stock returns and other types of investment.
Who Is Buying?
The average person buying second properties is a baby-boomer, of around 55 years of age, with at least $71,000 per year as an overall household income. Because the people buying up properties are baby-boomers, it has been noted that the sale of secondary homes should remain fairly high over the following decade. Boomers are peaking with how much money they earn, and they are consequently looking to find buildable lots for sale, or extra real estate for investment.
Buying Land in Texas for Recreation
Another common reason for people to buy available acres for sale in Texas is for recreational use. A tract of land, which is ideal for use as a weekend retreat, seems very appealing to a lot of people. There are buyers who live in Texas, as well as people who are coming from interstate, so they have somewhere to drive to that is not too close to their home region. These types of properties are generally fairly remote, and feature good fishing or hunting as their main draw-cards. Such properties are often too far away for people to live on, as the commute to places of work is not practical. However, they make perfect lifestyle buys, so that people can adopt a more recreational attitude to their time off.
Incentives for Tax
Some people who own second homes are able to lower the amount of income tax they pay, by renting their recreational properties to others. While this view on tax varies, and depends on just how many days out of the year a property in occupied by renters, it can be a great way to lower tax payments in Texas. If you are thinking about buying a second property for renting out, or simply renting out a property that you already own, it is wise to consult with a tax preparer or accountant. Ask them to prepare a report on just how much you might be able to save on tax, should you choose to go with one of these options.
Options for Financing
Since the second home market is going well, the market for financing second homes is also doing well. While these two things are not necessarily always linked, they do influence each other. Many people who are looking to borrow to buy a second property, are strong financially, and have proven streams of income.
If you are looking for a lender to help you finance a Texas residential land property, remember the importance of their local knowledge, and the conveniences that they offer.