Investment Options - Is Buying A Ranch Worth The Money?

Ranching is part of the American dream. The image of the ranch and the homestead conjures up the idea of the steely eyed cattleman fighting for his own independence against hostile nature and often black hatted villain who wanted nothing more than to rustle his cattle and make off into the dusty sunset with their ill gotten gains.

At least those were the story lines of the heyday of the West on American television and in cinema during the 1950's and 1960's.

Today there has been a resurgence in interest by many investors around ranching - but this interest has been tempered by a more pragmatic approach. The truth is that before donning a stetson and warming up the branding iron a careful examination of just how sound an investment a ranch is might be a prudent approach.

The first consideration when contemplating buying a ranch is to take into account that any investment of this type requires extremely deep pockets and a very long term mindset. This is not an investment that will provide an exceptional ROI in the short term. Often the land that is purchased is barren and needs stocking and other infrastructure investment.

Secondly there is widespread agreement among financial advisers who specialize in this sort of investment that in order to realize a profit the owner of the ranch must actually be present. These are not operations that can be managed remotely.

There is also the danger of confusing the returns that can flow from agricultural land with those that a working cattle ranch for instance can provide. The returns from a ranch are substantially lower than those for farmland. And it applies to most of the Equestrian property .

There is also a saying among those who have made ranching a way of life and this is 'cattle are a business; a ranch is an investment.'

The fact of the matter is that it is true. The land that is purchased as the base for cattle ranching is undoubtedly beautiful, but it can prove difficult to sell - or in some cases even value.

However, selling a ranch can lead to substantial profits. There are cases where people have purchased a ranch for $70,000 in the mid 60's and seen it sell in the second decade of the noughties for well over $4,5 million. However, there are rules set in place to ensure that profiteering does not take place. In order to make that sort of profit the ranch owner must show the IRS that they have at least tried to make a profit from the operation.

However, cattle ranching is not the only game in town, as the saying goes there are ranches that are turning a tidy profit from other activities. Dude ranches and hunting lodges / tourism are only two of the other alternatives that are available to those who want to enjoy the wide open spaces.

In the end it should come down to a lifestyle choice and a commitment to that lifestyle. If your dreams are to become a rancher then the investment will be a sound one - but don't expect to become rich without a lot of blood, sweat and tears - at least in the short to medium term.

The Most Important Things To Consider When Purchasing Your Dream Ranch

There are many people who absolutely love ranching and the associated lifestyle. You're definitely one of them if you're reading this article. However, if you're looking to buy your dream ranch property, then there are a couple of things that you will need to keep in mind. It is important that you have a set budget in mind before you start looking, since it is very easy to get ahead of yourself. In addition to looking for ranches on your own, it is best to hire the services of a well known real estate agency since they will make the search a lot easier. So, with that said, we will now look at some additional considerations that you will have to keep in mind when looking for the perfect ranch.

The first thing to note is that you should think about whether you want to just buy land alone or if you want to buy land with a ranch styled house on it. Of course, if you plan on living on your land and you have a family, then it would be critical to find land that already has a ranch house. Your requirements for the house would also be in consideration and is something you should discuss with your real estate agent. However, do note that land with a ranch house on it will cost more than land alone. Remember, it is possible to buy land alone and then build your ranch house on it later or as time goes by. For instance, you might consider california ranches for sale when making your decision.

Now, when it comes to finding the right type of land, you need to make sure that it has a water source on it. This is particularly important if you plan to have animals on your ranch since they will need clean water to drink. Also, if you plan on living on the ranch, then you will also need water for your home. Once you do find a water source, you should make sure that you have rights to it before purchasing.

Next, you need to properly survey the lands and take note of existing wildlife on it. If there are any pests or dangerous animals such as poisonous snakes, then you need to get rid of these as soon as you can. Snakes and even predators like wolves will pose a huge threat to your livestock and even your family.

Thirdly, another tip is that you should make sure that there is enough grass on the land. This is important because you will need grass to feed your livestock, even if you plan on buying hay and other feed for them. Grass on the land will save you a lot of money in the long run.

In closing, we have just looked at a couple of things that you should consider when purchasing your dream ranch. It will take a lot of time, however, you should do your due diligence and not rush the process. You should work closely with your real estate agent, I am certain that you will find your dream ranch in time.You can find more information on FB as well.

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