Equestrian real estate has tremendous potential like never before. These properties are now in the most demanded category of interest. But what are equestrian properties?
An equestrian property is a piece of land planned and developed to house horses, including stables, and a tack room, and must be connected to a network of trails for riding.
Equestrian property, or horse property, offers a significant return on investment through renting or purchasing these properties. Horse property for sale offers an investor to make its investment worth for interest. But there are many factors that should be checked before moving on to buy an equestrian property.
In this blog, we will explore the opportunities and challenges associated with equestrian properties.
Opportunities An Equestrian Property Offers
Equestrian real estate offers several investment opportunities for investors. It can offer a passive real estate income, short-term rental investing, vocational renting, or selling it again with a remarkable ROI. We will cover all these aspects here.
Short-Term Rental Investment
Equestrian properties have significant potential for short term rental investing, particularly for vacation rentals. There is a very limited supply of such properties which makes it a golden egg for taking profits by letting it on rental plans. In the long run, this can not only justify your investment in the equestrian property but makes a permanent profit stream.
Before letting your property on rent you must have to pick a short-term rental strategy so you can generate your income in a safe and lawful way. Making a clear-cut agreement and planning is necessary in this regard.
Selling Your Equestrian Property
As the supply of equestrian properties is very low and demand is rising day by day, selling your equestrian property offers you a huge profit if you have planned your property well enough and maintained the resources in it.
Now we will move to discuss the challenges in this investment that a buyer has to deal with.
Challenges of An Equestrian Property
Several challenges can impede investments in equestrian properties, leading owners to regret the lack of desired returns.
Lack of Planning
When it comes to planning an equestrian property, many buildings built in the equestrian property fail to offer proper planning. This is due to the reason that many equestrian properties were basically used for agricultural purposes and then converted to equestrian property.
This exacerbates the situation since the demands of equestrian properties differ significantly from those of agricultural properties. Moreover, these equestrian properties were registered as agricultural property, which makes the matter of buying such a property fall in a pit.
Rental Agreements
When we look at the present number of equestrian properties with tenants, it surprises us that many tenants are occupying the properties with an agreement. This is very alarming, though agreements can be costly, they save you and your property from being claimed by the tenants.
Equestrian Property Staff
A competent staff is necessary for an equestrian business, but they can also create challenges when it comes to compliance. A horse box driver, for example, is actually noncommercial, but they can be seen violating the regulations of rest hours and driving hours.
Investment Volume:
Many equestrian property owners get carried away by extravagant features such as horse toys, spas, indoor arenas, and walkers. This can get them involved in over-investing their capital in equestrian property. Therefore, it is important to exercise caution after purchasing an equestrian property and avoid excessive investments.
How to Buy a Rental Property
Purchasing an equestrian property for investment is a favorable option. This will make your investment grow in the limited but increasingly demanding market. However, there are factors to be considered and checked before finalizing a property. In this section, we will discuss the factors that determine a property’s suitability and safety for investment.
Location and Accessibility
When we look at the equestrian properties, we see many properties are in very rural areas, and some of them can only be accessed by country lanes. When we are looking for a good property, it must have enough space to move in and out a horse trailer and be large enough to make a truck turn around.
An ideal equestrian property should be located near transportation routes, such as motorways, to ensure easy accessibility to event venues like racecourses, shows, and riding events.
Type of Land
The land is the main and only part of a property that you can not change. For an equestrian property to buy, land is not something to compromise about. Free draining soil land is the best option for your equestrian property as the horses will spend most of their time on the land.
Allocate a minimum of 1.5 acres of land per horse, and the more land you can manage, the better. Getting more land makes your property flexible for the expansion of buildings or more horses.
Water Resources
An average horse’s daily water consumption is about 8 to 10 gallons. So having a good and accessible water source is necessary. Ensure that the plumbing is suitable and accessible from the pasture and stables.
A Nicely Built Barn
Looking for an equestrian property with pre-existed facilities must have a nice and well-built barn, stables, tack room, and water and power supply. Stalls must be according to the standard size so the horses stay comfortable.
Wide Storage Space
Ensure Adequate storage space is essential for an equestrian property, even if you have no immediate plans for expansion that the plumbing is suitable and accessible from the pasture and stables. Horses need a number of equipment, so a large and roomy tach room is necessary for storage purposes.
If you need to stable a number of horses, you must look for options where dietary storage, such as feed and hay stock, is separately available.
Location of Yard
A yard in an equestrian property must be in the range of sight and earshot of the main structure of the house. A yard located too close will devalue the main house and too far will make trouble accessing it. So be sure about your needs and also mention your demands to your agent.
Conclusion
If you are considering buying an equestrian property or planning to rent it out, ensure that your paperwork is complete, and maintain a clean and transparent record. Make a smart strategic approach when investing or renting out your property. Equestrian properties are experiencing increasing demand, creating investment opportunities. However, you must act smart and plan about what you need and what you have. EqueAdopting a sound investment approach, whether through buying or renting out, ensures profitable outcomes in the future. Strain properties are experiencing increasing demand, creating investment opportunities.
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