10 Reasons We Love Buying Land in Kentucky

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10 Reasons We Love Buying Land in Kentucky
By

Bart Waldon

Kentucky is known for its rolling green hills, thoroughbred horses, bourbon distilleries and rich history. But beyond tourism, Kentucky also offers abundant investment opportunities in its available land. With competitive pricing, development potential and long-term growth prospects, Kentucky has emerged as a prime state for land buyers and real estate investors.

As Kentucky continues attracting new residents and businesses, demand for land will likely rise over time. Whether you’re looking for a future homesite, planning to develop property or simply want land as a long-term investment, compelling reasons exist to buy Kentucky land sooner than later.

Why Buying Kentucky Land Makes Sense

Before diving into 10 specific reasons to purchase Kentucky land, it helps to understand the underlying factors that make the state so appealing to land investors right now.

Steady population growth – Over the last decade, Kentucky has seen consistent population gains as more people relocate for employment, affordable cost of living and a slower pace of life. This steady influx of new residents fuels demand for housing and infrastructure that requires available land.

Business-friendly tax policies – Kentucky offers very favorable corporate income tax rates and other business-friendly tax policies. Large companies are taking notice and bringing more jobs. An educated workforce coupled with low taxes makes the state ideal for manufacturing, shipping and logistics industries.

Tourism expansion – Bourbon tourism now generates over $900 million in annual economic impact as distilleries expand. This wholly unique tourism niche creates even more national interest in visiting Kentucky and moving to the state.

Infrastructure improvements – With highway expansions, bridge upgrades and other infrastructure projects in the works, Kentucky is actively addressing transportation needs to connect resources and people. Improved transit will benefit land values.

With those tailwinds propelling broad economic growth, buying land in various parts of Kentucky can pay dividends for years to come.

10 Great Reasons to Buy Kentucky Land

Beyond the underlying appeal of Kentucky’s economy and growth trends, many direct advantages exist with owning land in specific parts of the state. Here are 10 of the most compelling reasons to consider buying Kentucky land:

1. Lexington and Surrounding Area

As the second largest city in Kentucky, the metro Lexington area offers superb quality of life, cultural amenities of a big city and a diverse economy. Lexington fares extremely well for job growth, affordable housing and availability of amenities.

Plus, the natural beauty of surrounding horse farms and agricultural land provide future development opportunities. Land values should rise over time as more people flock to live in Lexington and surrounding counties.

2. Recreational Lake Regions

Many popular recreational lakes allow easy access to boating, fishing, swimming and other water sports during warmer months. Lake Cumberland in southern Kentucky draws over 5 million visitors annually.

Areas like Lake Barkley, Dale Hollow Lake and Kentucky Lake offer thousands of miles of shoreline and premium docking access since Kentucky lacks coastal waterfront property. Owning land close to these natural attractions comes at a big premium.

3. Bourbon Tourism Appeal

Owning land adjacent to Kentucky’s numerous bourbon distilleries or along designated bourbon trails creates financial possibilities like opening restaurants, stores or renting event space to tourists. With bourbon tourism surging, properties near these locations should appreciate nicely.

4. Natural Beauty

Kentucky is world-renowned for magnificent natural settings like Mammoth Cave National Park, Red River Gorge and the Appalachian Mountain range traversing eastern Kentucky. Plus, popular state resort parks with hiking trails, rock climbing, fishing and golf provide perfect escapes from city life.

Purchasing rural land to build a future home or cabin retreat allows enjoying this natural beauty forever. Rental income potential also exists around heavily touristed areas.

5. Farming, Agriculture and Timber

Between crop farming, livestock operations and timber harvesting, agriculture drives Kentucky’s economy more than any other industry. Almost half the state’s total land area is farmland. Major commodities include poultry, cattle, corn, soybeans and tobacco.

Buying farmland or timber acreage offers long-run income potential whether you farm, lease to farmers or sell timber harvest rights while land values steadily rise.

6. Mineral Rights

Eastern and western Kentucky overlay large coal reserves that offer owners mineral rights which allow mining coal deposits underneath properties. Even without directly mining, landowners earn royalty payments from coal companies who extract nearby.

While coal production fluctuates, rising energy prices should increase demand and royalty values over the long term as cleaner methods emerge. Oil and natural gas deposits also exist around Kentucky offering similar royalty opportunities.

7. Tax Benefits

Land ownership confer special tax treatments like reduced property tax rates for agricultural land and timber forests. Plus, 1031 exchange rules allow deferring capital gains taxes on investment property sales by reinvesting in replacement land.

Building up a portfolio of investment land holdings using tax-minimizing strategies lets long-term gains compound.

8. Development Potential

As population growth accelerates, suburban regions around cities become prime targets for projects like master-planned housing communities, retail complexes or industrial parks which require large acreage.

Getting in early to buy land in potential path of progress yields huge payoffs down the road as property gets sold to developers or converted to more intensive uses once zoning and infrastructure allows.

9. Hunting Leases

Avid hunters pursue whitetail deer, wild turkey and small game across Kentucky’s plentiful forests and fields. Finding remote land for sale with promising wildlife habitat offers options to lease usage rights to hunting groups since state laws allow private hunting leases.

High demand for quality hunting access makes this a profitable way to offset ownership costs while retaining land for future sale or development.

10. Future Retirement Properties

Finally, Kentucky land offers affordable opportunities to secure beautiful acreage for future retirement home sites. Buying land early and holding it lets values grow so more desirable parcels become financially feasible for building a custom retirement getaway home.

With modest cost land available in stunning locations from the Appalachians to rolling horse country, buying ahead makes achieving those retirement living goals easy.

Take Advantage of Current Kentucky Land Values

In many regions, Kentucky land prices currently sit below comparable listings in neighboring states. Forward-thinking investors who recognize the state’s long-term potential should capitalize on today’s relatively low values to acquire properties positioned for steady appreciation over time.

Work with specialized local firms like Land Boss who fully understand Kentucky land market conditions. We purchase Kentucky properties for cash, allowing owners an easy exit option. Or we help buyers identify promising parcels aligned with their investing objectives.

With crystal clear waters, emerald mountains, lush countryside and historic small towns as a backdrop, Kentucky offers so much more than outsiders imagine. Whether seeking land for future development plays, agricultural uses or to simply enjoy Kentucky’s immense natural beauty, myriad reasons exist to stake your claim. Act now while land remains affordable. The window of opportunity may not stay open long as more investors discover these hidden gems waiting to be snapped up.

Final Thoughts

Kentucky offers one of the nation’s most unique vantage points to tap into future growth. With natural beauty and opportunities not found in the surrounding states, well-positioned land investments here stand to deliver outsized long-term returns. The mix of economic strengths, pro-business environment, affordability and vast resources point toward continuing prosperity and rising populations. Plan ahead now and stake your claim in Kentucky’s upcoming success story by securing your slice of this scenic landscape. Whether aiming to build a family retreat, foster farming enterprises or supply the surging development demand, all roads lead to Kentucky for land buyers seeking an advantage. Let the enlightened investments you make today in Kentucky pay dividends tomorrow as more people discover the authentic charms and latent potential of this ambitiously rising state built on rich traditions interwoven with a bold vision for the future.

Frequently Asked Questions (FAQs)

What types of land are best for investment in Kentucky?

Some of the best investment land options are rural acreage around growing regions like Lexington, recreational lake properties, land near bourbon tourism destinations, and timber forests or farmland with long-term income potential. Land poised for future development can also pay off big.

What does land cost per acre in Kentucky?

Land prices vary greatly based on location and land use. But as a general benchmark, average per acre costs range from around $2,500-$4,000 in rural areas to $20,000+ for commercial development land near cities. Some recreational lakefronts sell for over $100k per acre.

Should I buy land in Kentucky as an out-of-state investor?

Out-of-state investors face no special restrictions buying Kentucky land. No residency requirements exist. The state does collect taxes on land sale profits if you sell for more than your purchase basis. But ongoing property taxes remain low. Absentee ownership works fine.

Does Kentucky lease option land? What about owner financing deals?

Both lease options and owner financing deals exist in the Kentucky land market, usually for more expensive/unique properties. Lease option lets you lease for 1-5+ years before deciding whether to buy. Owner financing spreads payments over time. Ask specialty brokers to access these deals.

How much can hunting leases earn on Kentucky land?

Quality deer and turkey hunting land with limited public access often lease to hunting clubs for $10-$30 per acre annually in Kentucky. Typical hunting leases run 3-5 year terms and earn enough to largely offset ownership costs. Prime properties bring higher lease rates.

About The Author

Bart Waldon

Bart, co-founder of Land Boss with wife Dallas Waldon, boasts over half a decade in real estate. With 100+ successful land transactions nationwide, his expertise and hands-on approach solidify Land Boss as a leading player in land investment.

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