Pond Boss Forums INTRO Questions & Observations Increased land value with large Pond/Lake?

My brother and I are thinking about buying some land in Northeast Texas for the sole purpose of building a large pond/lake. We're thinking at least 10 acres. This would be for bass fishing only - no catfish or crappie allowed.

We were wondering how much the land value would increase if such a lake were built. In other words, if we spent $20,000 (very rough estimate) to build a large lake, would we be able to sell the property sometime down the road and get that money back, or is the land still worth about the same as before the lake? Since we both live and work in Dallas, this land would be a sort of "weekend getaway". No plans to build a house on the land, although a small structure for sleeping, storing a boat, equipment, etc. might be built. The type of land we are looking for is heavily wooded, somewhat remote, strictly recreational type land. We have tried to locate existing land with that large of lake, but no luck so far. Thanks for your input!

I live 2 hours west of Dallas, and spent $7,500 to build a 5-7 acre lake...depending on if I can suppliment water to stabilize the drought periods, my land value will about double in value. $20,000 is pretty steep, but there aren't many places that can hold 10 acres of water. You will have to look pretty hard to find a tract of land to hold water that size...trust me, I'm looking, there's money to be made and lost developing a project that size and land investors see the opportunity.

Eastland, thanks for your input. I guess the good thing is that we are not real picky on where the land is located as long as it is with 1-2 hours from Dallas. Otherwise, it's too much of a hassle to drive out every weekend. We're confident that in time, we'll find a place that can support a 10+ acre lake. The problem is that many of the websites that advertise land don't have enough information about the specific property, specifically GPS coordinates, Topo maps, etc. Our main worry is that we'll spend a ton of money on a place, and never get it back. Of course, everyone I've talked to says that you can't go wrong buying land as an investment. Do they know what they are talking about? By the way, can you recomend any websites or realtors that could help in our search? Thanks a ton!

I can tell you here in Georgia that a lake brings a good return on land I have first hand experiance....But it is all what you pay for the whole package...land and pond...But $20,000 sound really cheap for a 10 acre lake!!! I paid $45,000 for my 9.3 acre lake and I think I got a good deal!! Man!! I tell you the contractor I used was really GOOD!!! I meam Dang good....

JDK,

In your search for land, I'm sure you'll have the opportunity to rub elbows with some realtors, ask them. You could also ask the opinion of your local tax assessor.

I would think any improvement you make to a piece of property increases its value, especially a pond.

Russ

Water is gold in my part of the country and if you have a pond/lake on your property you can set back and watch your investment go up, up, up in value. Every pond digger in this area is back logged for a min of 6mo and they get a premium price.

Here's a good Texas site.
http://www.landsoftexas.com/texas/
Taxes are a major consideration too. It takes time to scout out property, and make sure it has an Ag or Wildlife exemption, otherwise you'll burn a ton of money that should be saved and spent on your pond

Well, I appreciate everybodies input. I'm encouraged and discouraged at the same time. I'm sold on building a lake - it sounds like a no brainer. But, I didn't realize how hard it would be to find the perfect place. Guess I need to be patient, and get a good realtor on board. I'm going to check into those wildlife exemptions and other programs as well.

If Dallas is anything like Atlanta....you are in for a WILD ride...it is tough! to find a large lake, or lake sight....the question is what do you want to spend???

It is my understanding that water increases the land value by 1000%. In other words a one acre pond on $2,000 per acre land is worth $20,000 at sale time. Of course, it is taxed accordingly. Building, stocking and maintaining a 10 acre pond is expensive; very expensive. Eastland got a bargain. Big Pond is about right on the price of building. Stocking could easily cost $5,000 if you do it right. Doing it wrong could cost even more. Just finding the right place to build on could take years. Lake site with the right drainage; all on your own land and not creek fed takes a large land purchase. If the drainage isn't all on your land, a neighbor might build a pond upstream and cut you off from water. Oh yeah, there are areas within a couple of hours from Dallas that don't get a lot of rainfall. Do a lot of research and thinking. East Texas gets more rain but in pine tree country, the soil often lacks alkilinity so you wind up having to lime. Another expensive chore for your new toy. Do a lot of research. A whole buncha research.

Dave is right...Do a lot of research, My first land and pond purchase was a very expensive nightmare, all from being in a hurry and not doing my homework.

Boy it took me 6 years and becoming short of an Expert, Topo maps and engineering, forestry and logging industry, pond management...ect...It has been quite an educational experiance....The first lake I owned was already built and stocked it was 2 hours and 15 min away...This second one is only an hour away comes with more land, and the lake is bigger. I built it from start to finish. I can tell you it was involved every step of the way...

By the way...yes I would do it all over again on another different tract of land..

We are just Northwest of Dallas 1.5 hours on the west side of 35. Our 11 acre lake cost @ $50,000.
On whether it raises the value, it definitely does. I think I read in one of the issues how Mark McDonald sold his property and got a abnormally high sounding per acre because of the lake. Look at your situation. It is hard to find the land and go through the pain of building a lake from scratch. If you have the money you would be willing to pay more for land with a lake than surrounding land or for one with a site. Recreational land is going to become more and more valuable and those with great lakes will demand a higher and higher premium. Especially if they are close to a big city. I have no desire to get out on a big public lake with all the poor people. I close my gate and fish in my own lake and only deal with those that I want to deal with. Now that is value!! Just kidding on the poor people comment.

Did you buy the land with the lake already there, or did it cost $50,000 to build. How many acres did you buy? 11 acres sounds like about the right size I'm looking for. How hard is it to maintain? Is it a good size to keep you interested....I would think that a small pond would get boring fishing the same spots over and over again....but I could be wrong. Photos would be nice too, if you don't mind posting a link. I think the perfect combination would be a large 10 acre + lake near a public reservoir like Cooper Lake, Lake Fork, etc. Then you get get the best of both worlds.

Land was bought w/o the lake being there. We built it and that was the cost. We have almost a thousand acres between my father and me. It is actually a little much for us to handle. We don't have a whole lot of people on it and it has become a little like punching the time clock on taking fish out. We have taken out 600 bass in the last 12 months and are just now starting to see progress. It is also going to be more expensive to maintain the bigger you get. We also have a 6-acre lake that was already on the property and that is more my size to manage imo. I would rather fish it than the bigger one. Of course that is because it has bigger fish. The more east Tx or south of Dallas you go you will pay more /acre on average. Especially in east Tx. Have you ever thought of going across just into OK. You will pay a lot less/acre. Just a thought.

Another quick question....I'm looking online at some different properties, and many of them say "Sandy Loam Soil". Is this something to shy away from? I'm assuming they put that there because of agricultural reasons, but I'm not sure.

I think everyone has worries about leaks when they invest in a pond. Even if you do a TON of research, you don't really know where the underlying water tables are. They can suppliment water, or drain you dry. The ideal pond site has good clay present, generally digging a 2-4 foot hole produces clay. In Texas, Summer is brutal, you can see your water evaporate by the day, guidelines State you need a 10-12 ft. depth MINIMUM. If you want to go the "extra mile" doing your research, check well depths in your area. I realize this may be exclusive to the Dallas/FW area. If you want the kind of pond I think you do, don't count out a well to suppliment your water. It's no different than an oil well...hit a piece of property that holds and maintains water (even if you spend $$$ on "artificial" well water) you can create "God's Country". I bought my property in Eastland 7 years ago...the dam took me 4 years of savings, I'm in the process securing equipment to drill 2 supplimental wells (Hydra Drill) myself, solar powered. I know the surrounding water wells are approx. 75' deep. Slow Down, Do your Homework, and it's the most satisfying feeling in the world...I'll NEVER sell my land with all the hard work I put up front. Unless the price is right, then I would just do it BIGGER and better. KNOW your facts before buying, and that still doesn't guarantee anything...but increases the odds

You need to be able to compact the dirt together in your hand and it stay together, even in the water, this will give you a rough scetch of what to look for.
Remember, you might want to dig some test holes at about 20 to 25 feet deep to see where the water is at, and to see what kind of material is down there....There have been many of lake projects that have gone BUST because of poor core material....

Not to pump one of the owners of this site but we used Mike Otto. We have a number of soils(sand, black soil, clay, rock, red dirt)so it was very important to us that we get the right location. My father actually built the lake. I didn't see a reason to because we already had a lake. Boy was I wrong. Mike actually had dad move the dam location and make it a smaller lake. This cost Mike some $$$ but really made sure we got a lake that was going to hold. I don't think anyone can absolutely guarantee you that your lake will hold water. Drilling test holes is an absolute must. It will tell you the likelyhood of success. I think all earthen dams are going to leak to some degree. If you do the soil in the hand test you may find when you start digging that you have no clay 5 ft down. I would find the professional dirt mover and let him see the land before you buy and get permission to drill some test holes. If the lake is the defining point of buying the land make sure you've got it right before buying. Please let me make sure and say that I am no expert. I'm just regurgitating what we have learned from people like Mike Otto & Bob Lusk.
They are not perfect either but it increases your odds of success when you have someone that knows what they are doing and is not in it to make a fast buck and has been doing it a number of years. Just my thoughts.

One other thought on depth. Eastland said in Tx minimum depth like 12 ft. We will not dig a pond unless we go 16-18 feet deep. I would overdo your depth because over the years the silt is going to reduce your depth anyway.

I recall reading here or in PB Magazine that you want approximately 35% clay content. More than that cracks when the water level drops.

I certainly second everything that Buzz and Eastland say. Between silting and evaporation, you almost can't go too deep.

first of all, i love property, and "they ain't makin' any more of it". so i believe in buying as much property i can afford! now, does a lake increase the property value. i believe absolutely yes. matter of fact, most accountants will consider it "a property improvement". the reason i know that is because i tried to deduct the cost thru a business blah blah blah, and basically..he said it "improves the value of the property and " ...blah, blah blah now, what i find interesting is not just that a pond improves property value, but if a property owner is smart, when they sell the property, the "pondability" of the property, even without the pond increases the value. what i mean is, if you came to me looking at my property to purchase, i can sell you, say 50 acres for 3k an acre (just an example). now, that 50 acres can have woods, non favorable pond soil, minimal water runoff or inflow of water, cedar glade or whatever. hey, it's 50 acres. BUT, if i had 50 acres, and sold it to you for 3k an acre, an it was a perfect place for a pond, even without a pond on it...i'd be crazy. know the potential of land. what can yo build on it? also, location. for instance, it would take a big chunk of money to buy my piece of property...i am 5 miles from town where i work, built a 6-7 acre pond, can deer hunt, turkey hunt, and dove hunt. i bought it, didn't tell the sellers my plans, and quietly bought adjacent property. if you tell everybody what you want to do, and tell them "hey, this would be a great piece of property for a pond", well, the price goes up. and buy up what you can afford around that property, without telling everyone around there what you are doing...prices go up.

also, i can't imagine a 10 acre pond only costing 20 grand. i agree with big pond. my 6-7 acre lake was about 45 grand, and that was with all of the dirt and clay available on site. well, just blabberin' here, so hope it was useful.

well I know here in GA lakes and pond are in high demand....and they are tough to come by..