If you are a property investor looking to expand and diversify your current portfolio, you might be considering branching out into new equestrian developments or existing horse properties in a suitable area.
But is investment in such a unique field a good idea? What benefits might it offer to you, and how might it fit into your existing portfolio?
In this article, we explore whether or not a horse property or equestrian estate is likely to make a good investment throughout the coming year and beyond.
Horse Properties: A Smart Investment?
Expanding your property portfolio into the equestrian world is a smart move for any ambitious real estate professional who has done their research and has the means to properly maintain buildings and land of this kind.
There are many reasons why this is the case. We’ll explore just a few of the benefits of investing in this distinctive sector of the property market below, to show why it could prove a very intelligent move on your part.
It Provides An Ongoing Source of Income
By purchasing and/or developing equestrian land and its related buildings, you will be able to offer horse owners the opportunity to rent stables from you in either the short or long term.
As long as you have the capacity to do so safely, a large number of horses can be stabled in a relatively small area. You just need to ensure that they will be well looked after and that there is enough additional space for them to be exercised and groomed.
There will always be a demand for resources of this kind, particularly if you choose your location wisely.
There is even the potential for external specialists – or even yourself, if you have suitable qualifications – to lead horse riding, massage and grooming lessons on the property.
These are just some of the ways in which you can effectively monetize the property, so that you can receive a steady source of income from it throughout future years.
Unique Characteristics
Horse farms and similar properties make for a very distinct investment. They need to be set in the right kind of land, with plenty of space for the animals to be exercised and comfortably stabled. For this reason, there will only ever be a very few within a large radius.
This scarcity drives up the demand for their use, which means that you can always be fairly certain of a high income.
Reliable Protection Against Inflation
The value of specialist agricultural land rises quickly, and usually outstrips inflation – particularly in areas with significant equestrian activity.
“This means that horse properties can be considered something of a defensive asset, potentially protecting the investor against issues such as market and financial crashes,” comments Ruban Selvanayagam of quick homebuyers Property Solvers.
Retains Value
Owners of horse properties are at a significantly lower risk of loss of value than those who invest in many other assets.
Investments of this kind tend to retain their value very well. Upkeep and maintenance – if undertaken regularly and diligently – will not pose too much of an expense. For these reasons, equestrian estates have the capacity to virtually pay for themselves.
What’s more, if the time comes when you wish to sell the property, you are very likely to make a profit.
A Hobby and an Income
Those who are drawn to investing in horse properties are likely to be interested in equestrian sports themselves.
Taking a step of this kind is a great way to make money from something you love, helping you to easily cover the expenses that come with your hobby while providing support and resources to others in the same field.
As a horse lover, you can stable your own horses on site too – making this investment a highly practical and personal one.
Why Now?
The equestrian industry has experienced notable growth over the past few years, despite slight dips caused by the COVID-19 pandemic. This reveals that the sector is one more than worthy of investment.
The above are just a few of the reasons why investment in an equestrian property could be a very intelligent move.
Of course, it is vital that anyone seeking to make an investment of this kind first undertakes in depth research into the matter. After all, horses require a great deal of care and must be stabled in a humane, clean and comfortable way that is also practical for their owners and riders.
They must have plenty of well-kept space for exercise and need to be regularly groomed and checked-over by specialist equestrian veterinarians, so it is vital for you to bear these matters in mind before you take your first major steps.
If you are currently in a position to seek out new and exciting opportunities to expand your existing portfolio, or just to make a start on your property investment journey, a horse property could make an excellent next project.
Article written by Roy Cohen
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