People today are not too many generations removed from a time when land was the most valuable commodity a person could own. Land meant freedom, independence, stability and prosperity. Perhaps this is why, even though today we can achieve these goals through other means, the interest in investing in rural real estate remains strong.
However, it can be challenging to justify a rural real estate investment if you are not well versed in all the ways such an investment can pay off. In this post, learn five surprising uses for rural real estate you may not be aware of.
Reason #1: Water and mineral rights can be lucrative.
Just as, in recent decades, investors flocked to regions where it was known that gold, silver, copper and other precious metals could be mined and sold for a profit, so too are there many regions today where such riches continue to sit undiscovered underground.
This is perhaps the number one most surprising use for your rural real estate holdings. You can simply sit on the property and lease out the mineral and/or water rights for passive income that supports you month by month.
Reason #2: You can rent out the land for farming or grazing.
If you have a rural real estate holding you are sitting on to let it appreciate, you can rent it out to local professionals who can use it for grazing or farming.
Here again, you can earn passive income even if you live far away.
Reason #3: You can start a wildlife theme park and charge admission.
If your rural real estate holding is in an area where there is much through-way traffic by local wildlife, you may consider opening a wildlife theme park where local and visiting families can get a better sense of the diversity in the area. This can also help you attain visibility for your property if you are actively looking to sell it in the future.
Reason #4: You can lease out portions or the whole area to local merchants to provide additional services to the rural community.
A fabulous use of rural real estate while it is appreciating in value is to lease out your holdings to local merchants who want to set up shop in the area.
You may lease out plots or properties or the entire portion, but your work is finished when you sign the lease. The lessee takes care of the heavy lifting and you can simply reap a portion of the proceeds.
Reason #5: You can sell it for a profit.
Finally, one of the main reasons any investor wants to invest in rural real estate is to hold onto it until the surrounding property values rise. When this occurs, you can sell your land and realize a handsome return on investment.
By simply doing a bit of strategic research, you can identify promising areas and locate your real estate holdings there.