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6 Reasons to Consider Buying Land in Texas

6 reasons to consider buying land in texas

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Published date:

January 16, 2020

Last updated date:

November 22, 2024

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

The state truly has it all; whether you’re looking to start a farming venture, invest in a property within a suburb or thriving city, build a home in a quiet rural area, or invest in a ranch, there’s a piece of land in Texas that can bring every one of your goals to life. The incredible landscape variety makes it a prime location for all types of land buyers. From serene lakes and rugged mountains to fertile farmland, lively urban centers and rapidly growing suburbs - 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. The rapid population growth translates into abundant opportunities for land investors interested in commercial buildings, housing, and other developments. According to Ed Curtis, CEO of YTexas, “With an abundance of investable land and a growing population, Texas should be on the top of every land investor’s list in 2025.” That means a lot of opportunity for any land investor who wants to put their money into housing, commercial buildings, or other consumer-facing developments. Investing in Texas land now means positioning yourself at the top of a booming market, with a high potential of significant return as the state continues to expand and thrive.


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. These tax benefits positively impact investment in Texas, as they can help maximize returns and reduce overall costs for property owners engaged in these activities.


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. The vast, open landscapes are ideal for your investment vision, offering high potential for those looking to capitalize on the state's generous land availability.


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. Texas can offer more favorable financing terms and potentially greater long-term returns, making it an even better investment option.


6. Farmers are Welcome

Texas’ population may be growing, but its use of farmland isn’t. Between 1997 and 2012, the state lost more than one million acres of farmland 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’re looking for farm land in Texas, you’ll find plenty of opportunity and encouragement to do so. There’s a lot to love about the Lone Star State, and that goes double if you’re a land buyer.


Final Words

If you’re considering buying land in Texas, there are a lot of good reasons on your side to do so. Whether you’re into investing in commercial land, or down to investing and taking advantage of the natural resources of the state, Texas can meet all your investing needs. 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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