From farmland to hunting land to rural home sites, purchasing land should be easy and, with the right guidance along the way, it can be simpler than you think. If you are interested in purchasing land or even if you are just browsing, take a look at these top ten things to consider:
Consider what your needs are now and what they will be 10 years from now. As your family grows, will the location help or hinder your family’s ability to enjoy the property?
What are you buying the land for? Make sure you take time to look down the road and decide exactly what you want the land to be-and do- for you.
- Types of Land
Sometimes, it comes down to understanding how much money you want to spend. What utilities and maintenance will you need in the long run?
It’s important to understand if future development can happen near your property. Is land around you government-owned or managed? Is there restrictive zoning?
Understand what kind of permits you’ll need to have the finished property you want. Some jurisdictions have limited restrictions in terms of permitting while others are more comprehensive.
- Restrictive Covenants
These are legal obligations imposed on the buyer. Typically, there are few, if any, when purchasing rural property; however, it’s important to ask, especially if you are unsure what you will be doing with your property several years down the road.
- Utilities and Roads
If there aren’t any utilities and roads, you’re responsible for putting them in.
- Liens and Easements
A lien is a monetary claim against your property. An easement is someone’s legal right to use your property for a stated purpose. Easements typically transfer with an ownership change.
If you’re not sure about the property’s boundaries, get a survey. It’s the only way to be sure of exactly what you own and will be helpful should you choose to build on the property or sell it.
- Have ALL the Facts
Keeping these considerations in mind may help when thinking about buying a piece of land either now or in the future. You may have some financial questions that need answers before moving out to the country. That is when someone with knowledge in land financing can really make a difference in your financing journey. From the experience of Louisiana-based First South Farm Credit loan officer, Bret Munson, “Buying land is not like buying a house. While there are some similarities, there are specific things you need to know when purchasing land. Knowing what to ask and who to ask can help you make a smart financial decision that you can feel confident about.”
A financial guide, like Munson, can be there to help eliminate any confusion you may experience along the purchasing journey, “There is not a cookie cutter approach to the purchase of land. For example, a 100 acre piece of timberland is different than a 100 acre piece of farmland. One person may have issues with roads while the other may have issues with utilities. There are important things to consider when it comes to the land you want to buy and each situation may vary by an individual’s financial needs.” Munson understands that every individual has their own preferences and needs when it comes to finding the right property for them. He also keeps this in mind when customizing financial options to fit their needs, “Your circumstances may be different from the next, but we are here to guide you, personally, through your unique situation.”
Ready to talk land financing? First South Farm Credit loan officer, Bret Munson, is available at your convenience, Monday through Friday at 318-366-9595.