Texas Ranch Connection - Index

Texas Ranch Connection - Texas Ranch Connection - Index

82
TEXAS
RanchesSTILL GREAT
INVESTMENTS By Jessica Dupuy
T
hese days it seems all we hear
about is the failing economy. And the
signs are certainly all around us: the government
bailing out large banks; the
American dollar sinking lower and lower in the
global economy; and a fickle Dow Jones vacillating
back and forth by hundreds of points
each day. With all the talk of doom and gloom,
it’s reasonable to feel a little apprehensive about
investing in a ranch or second-home property.
And though some markets across the country
are hurting more than others, many industry
professionals think that for those with the buying
power, right now is the best time to buy.
There was a time when owning a ranch
meant managing cattle or sheep and working
the land. Today, when people think of owning a
ranch or “ranchette” property, it’s usually guided
by the aspiration to have a relaxing refuge
from the stresses or everyday life, a fun weekend
getaway to share with friends and family, or as a
place to settle down and make a new life.
We would all like a special place to escape,
but don’t underestimate the ranch and second
home market as a phenomenal place to invest.
In fact, according to Research Economist at the
Texas A&M Real Estate Center, Dr. James P.
Gaines, the real estate market is one of the few
sound markets in which you can invest. “The
stock market has been exactly flat since 1998,”
says Gaines. “And no one wants to invest in
bonds because with interest rates rising, the
value of the bond decreases. Quality real estate
can be a perfect way to combine an investment
with a place to play and use.”
By ‘quality real estate,’ Gaines means a piece
of property with long-lasting appeal; something
in the market place that someone else will
always want such as waterfront, views of mountains
or valleys, or easy access to recreational
activities. Quality is the operative word in this
scenario. Unless you can find property with natural
amenities or the potential for aesthetic
improvements, your chances of acquiring a
lucrative investment are slim.
Gaines’ opinion is strongly echoed in the
words of brokers and economists around the
country, particularly in areas with mountains,
rivers, or hunting opportunity.
Though brokers in these areas have seen a
slow down in monthly sales transactions, there
are still great opportunities in Idaho, Utah,
Colorado, and even Texas. Though you may still
find inflated prices in over-saturated ski towns
such as Aspen and Vail, smaller locales such as
Telluride are witnessing slow, but steady growth
in both primary and second homebuyers.
“I’d say we’re a very grounded barometer
for what’s happening with the U.S. economy,”
says real estate broker Mike Wentworth of
Telluride Village Properties. “The mountain
towns will always be a desirable place for people
looking to have a place to enjoy on occasion,
or for those who are looking to settle
down and build a life. The slow down we’re
seeing now will only help bring a little balance