4 Reasons Why You Should Invest in an Equine Property
If you’re an investor, you know that investmenting in real estate is generally a good decision. Real estate land only increases in value over time. However, one of the challenges about investing in real estate is choosing which property will get you the most money.
That said, if you love horses, then investing in equestrian land is also a good decision for various reasons. If you love horses, and you probably do, given that you’re reading this article, then investing in a horse property sounds like a dream come true. Horses are magnificent animals, but they can be quite a hassle to take care of.
Horses require a lot of care, and you should be ready for such a commitment. It may be hard labor, but the benefits of investing in equestrian land far outweigh the challenges of taking care of them. Here are some reasons why.
Stable Income
An equestrian land can provide a stable income for an investor. This is because the income usually increases over time by about 5% annually. While this may not be the best in terms of property investment, you can rest assured that this is consistent. Not only that, but you can also use the land for recreation, training, and exercise for horse athletes, giving it a huge boost for its investment. Also, equestrian lands usually have a 100% occupancy rate regardless of the economy.
Apart from being a stable source of income, the revenue you can generate from a horse property is non-volatile. This is because of its 100% tenancy condition, which reduces the owner’s chance of encountering shortfalls in terms of revenue and income. The lease also protects the owner from volatility coming from other commercial investments.
And not only does equestrian land get income from its rental assets, but the value of the property itself can give you income, as mentioned earlier. So no matter what happens to the economy, you can rest assured that you will yield a high return on investment.
Inflation Hedge
Of course, farmlands, in general, are known to be effective inflation hedges, and this includes equestrian lands. This is because statistical data proves that farmlands positively relate to inflation. This means that the value of farmlands, equestrian lands included, increases their value faster than the inflation rate. This makes farmlands, in general, a better investment than other investment vehicles. This is even better if your country is keen on government policies that consistently affect the country’s inflation rates.
Tax Incentives
In many countries, investing in farmlands, in general, can provide investor tax incentives, which attracts more and more investors to invest in farmlands. Of course, this includes equestrian lands.
These tax incentives include standard tax, capital tax, income tax, and inheritance tax. Because of these incentives, you can rest assured that it will yield greater profit margins than other forms of investments.
It’s a Simple Investment
An equestrian property is a relatively simple investment compared to other forms of investment within and outside of real estate. This is because typically, there are a fixed number of equine properties in any given area, which is good. But when you look at other forms of real estate investments like multifamily properties, you can always see them constantly shifting supply and inventory as old buildings get torn down, and a new one takes its place.
Now, if we’ve convinced you to finally buy an equine property, here are some simple tips on buying a horse property.
● Buy During Springtime
According to a lot of experts, springtime is the best time to buy an equine property. This is because the springtime has pretty much every weather pattern that you need to carefully check the condition of the property.
Horses are delicate animals, you can attest to this fact during a race. This is why there are a lot of factors that you need to consider when betting because a simple thing can change the performance of a horse. That is how delicate they are, which is why you should make sure that all the features of the property are taken care of by the previous owner.
● Condition of the Roof
When it comes to horses, you should always check the roof’s condition. This way, they won’t get sick from very humid barns or molding problems. With this, you can avoid paying for vet expenses, which by the way, can potentially lose your equine property some value.
● Shade and the Sun
Horses, just like us, enjoy bathing in the sun. So a property that gives them access to both shade and the sun will keep your horses happy. This is why Springtime is the best time to buy an equine property because you can check this feature when you buy it.
● Drainage Functionality
The property’s drainage system is one of the most important aspects of a barn. If it’s not functional, you’ll end up with mud all over the area. Of course, this is bad for the health of your horses, so you should check it when buying the property.
Final Words
Investing in equestrian land is generally a good pick if you’re looking to have a stable income and a high return on investment. Of course, they don’t come cheap, and there are plenty of good reasons why. So if you’re looking for a simple yet profitable investment, then an equine property is what you’re looking for.
