Things to Consider for Investors Looking to Buy New Mexico Ranches

New Mexico is the fifth largest state in the US, but also one of the least populated, which makes it ideal for escaping more densely populated areas. But, what makes the state so attractive for those looking to buy New Mexico ranches is the relatively low cost of land. With some shopping around, the right property will be there.

We advise drawing up a list of requirements and what you want to use the ranch for. Some ranches are suitable for farming operations, while ranches at higher altitudes make excellent bases for the nearby ski resorts.

Location 

This is an essential point to consider at the beginning of your search. Do you want to be out in the middle of nowhere or do you want easy access to nearby towns and cities? If you are looking to buy a money-generating ranch, then the location will have an impact on what business operations will be viable.

Ranches at higher elevations are ideal for outdoor pursuits, but you need to check the level of infrastructure to see how easy it is to get in-and-out of throughout the year. These ranches are usually great for accessing nearby ski resorts, making them great getaways.

It is also worth considering whether you plan to continue working off-site, as this will involve factoring in ease of transport and commute times. At more remote locations, these times can be significant.

Purpose 

Many New Mexico ranches offer excellent hunting and fishing opportunities, which can be used for generating on-going revenue. Private hunters and corporate teams are always looking for new sites to do trophy hunting or to catch a prize trout. If this is something you are considering, you need to look at a site which has excellent accommodation already or one where planning permission will be easier to attain.

It is also worth considering the amount of time you plan to put in on the ranch, as even the smaller ranches require a considerable amount of time to manage the day-to-day operations.

Mineral Rights 

Mineral Extraction and Production is big business in New Mexico, with coal and oil being most sought after. This is why having access to the mineral rights for your land could be worth a lot of future income. When searching for sites, make sure you ask the realtor about this because if someone else owns the right, then they will have the right to check for deposits. This could be very damaging to any farming or recreational activities you’re conducting on-site.

Water Rights 

This is another important consideration that can have the potential to add or reduce the value of the property. There may be large bodies of water on, or running through, the ranch. But the ability to make any changes to the existing water sources, for example, irrigation, will be down to the rights owner.

Tax Status 

The New Mexico state government offers generous tax credits for ranch owners that are willing to participate in conservation programs. This is worth considering if you are looking at ranches that attract or have the potential to attract big game.