Key Tips When Purchasing Rural Property
Did you know that investing in land could be one of the smartest moves you will ever make. However, you have to go into the possibility of owning rural property with both eyes open as there are some unique rules, laws, and situations that may arise that you may have never experienced before. Here are 6 tips for buying a rural home.
Land Access is Critical
You have to access your property regardless of the activity you are carrying out on it. For example, you have to transport fertilizers to the land if you use it to farm. Additionally, patrons to your facility must have to access the property by road if you establish a recreational center on it.
Just remember, you have to make sure that getting to the land is convenient for everyone who might use it. Otherwise, you run the risk of having a plot of land that you will not be able to utilize as you planned.
Contractual Ownership is Key
People discover hidden resources on their property all the time especially if they live in rural areas. Unfortunately, disputes arise over who owns those rights. Is it the new owner? Is the previous owner who sold it without knowing the resource was there?
Make sure that the contract specifies ownership when it comes to resources so that you do not run into any trouble in future. If it is spelled out in the contract who has ownership or rights, you are covered if an issue arises down the road.
Rural Regulations and Laws
People that do not own the property may have rights to it. The legal name for these rights is easements. For example, a path on it may be leading to a valuable resource. That means you cannot block this route if people are using it to access the resource.
Additionally, the type of facility you build on it may affect the quality of light and air the surrounding community receives. Understand these easements so that you can know the legal restrictions that you have to abide by as the owner of the property.
Rural areas have vast lands that are under the authority of different municipalities. Each municipal authority has its laws and regulations on drainage and sewerage systems. For example, some authorities may place restrictions on the building of septic tanks or the use of nearby rivers for irrigation. Understand the regulations and laws that govern the area where your land is so that you can comply with them.
You should consider your tax obligations whenever you transact business especially when it comes to purchasing land. Remember, taxes on land vary across the country depending on federal, state, and local laws. You have to comply with each set of requirements. Talk to a professional in this area so you understand your tax obligation during the purchase and as while you use the land.
Know Your Zone
Zoning is an important economic practice carried out by local jurisdictions all over the country. It defines how you can use your property within a particular region. Examples of common zones include agricultural, industrial, and recreational zones. Building a recreational center in an agricultural zone is not possible. Therefore, you must determine how the local authorities zoned the area because it will affect your use of the property.
It is also critical to understand the availability of services such as water, electricity, network coverage, and sewers. Not only are they needed but are critical for a comfortable life in rural areas. They are especially important if you intend to hire workers who will work or live on the property. Moreover, the availability of these services determines the price you will pay for it. More specifically, the unavailability of these utility services should lead to a drop in the price of the land.
Lay of the Land Examination
In most cases, rural land is suitable for agricultural purposes. That means you can use farming as an alternative in case what you want to do with it fails. However, this option is only possible if the quality of the soil is good. For example, crops cannot grow on rocky terrain. Sandy areas are also bad for agriculture. Therefore, asking about the quality of the soil before you purchase rural property is an excellent idea.
Constructing a building on a rural property is a difficult task because the equipment and labor force you need to do the job is not readily available. Uneven surfaces such as hilly terrains, deep valleys, and numerous rivers increase the cost of construction exponentially. Furthermore, this kind of terrain affects the possible uses of the property so look at the topography of the land before you buy the land.
Architectural plans depend on the shape and size of the property you want to buy. You can purchase a property only to realize that it is inadequate because your architectural design envisioned a bigger parcel of land than the one you bought. You might also find that the land area is okay, but the shape is unsuitable.
Know Thy Neighbor
Sometimes, conflicts arise over rural properties. For example, the community may feel that they have a right to it even though the law does not recognize that right. At other times, the locals may oppose the activities you intend to carry out on the land. Talk to them so that you understand their sentiments. Ease the fears they have if doing so is possible or work on a compromise so that everyone is happy.
Ask the local community about the frequency of events such as droughts, floods, landslides, hurricanes, tornadoes, and wildfires among other potential disasters. Preventing natural disasters is impossible, but reducing their impact on your property is possible.
However, you can only put mitigating measures in place if you know what kind of disaster you should expect. Purchase a piece of property somewhere else if the frequency of these events is too high for your business to bear.
It is important to make sure the land you buy today does not lose value tomorrow. You can do that by discussing your options with a local real estate expert, studying local plans for the area, and adjusting to whatever situations arise.
Additional Buyer Resources
Tips for Real Estate Buyers on Storify
Buyer Resources vis List.ly
Buying Real Estate from Anita Clark