Owning recreational hunting property that you use frequently is a sound financial investment. If you are utilizing the land you own, you won’t be motivated to sell and allow the investment to appreciate over time. You can wait for the best opportunity to realize investment gains if you are enjoying the property. Often, buyers will want to purchase land for non-recreational uses such as farming, which generates a higher sales price. And, you might be able to negotiate a deal where you maintain hunting rights.
Some of the intangible benefits of hunter-land ownership are hunting, satisfaction from managing resources, wildlife conservation and control over access and activities on your land. Although financial benefits are often difficult to compute (in the short term), when the time comes to sell, liquidation typically produces a profit. So, put your money into something that produces immediate enjoyment and also long term financial gain!
Certainly the biggest issue in purchasing hunting land is cost. Often expensive and the cash flow from hunting is minimal. Hunting properties are often low intensity farms or grazing ground. Cash flow often limits the owner’s ability to leverage this type of property with a large debt service. Many times initial investors are unable to purchase this type of land without taking on some type of partner.
One of the common avenues of purchasing hunting property is through partnership agreements where a group of individuals ban together to own property that provides enough hunting opportunity to satisfy several individuals.
Buying hunting land with partners can make hunter-land ownership affordable and a good partnership agreement can create rules about both the financial arrangements and the shared hunting opportunity.
The arrangement should be set so each partner can experience a quality hunting opportunity. By combining assets, you divide the cost and sometimes installment debt, thus putting the purchase within the budget of the individual partners.
For some, the partnership arrangement can provide all the hunting opportunity they ever need, while others will go on to larger investments and maybe even individual ownership.
The Whitetail Properties' Land Specialist team is well versed in partnership agreements and can offer guidance in seeing you and a friend or two turn your dream into a reality.