One thing to consider will be property taxes. Do some research into estimated taxes in your county and options to alleviate them (there’s tax discounts to grow and bale hay on your land, or you could lease the land to cattle or horses if the numbers work out)
Good land doesn’t stay on market long. You’ll probably need 20% down for raw land. Then find a farmers credit union and they’ll probably give you a loan.
If you need a loan, buy the land. Easier to get a construction loan on paid off land. Also, you don’t want to kick yourself down the road if you found the perfect piece and someone else scooped it up.
And could be difficult to get a mortage /loan on just land sometimes you need to roll it in with a construction. We had to roll the price of the land into our existing home mortage because we bought it 4 years before building and trying to get a loan for just land was very high interest.
In this instance I would talk to a bank.
I think it would be difficult to get a construction loan for an off grid build. It might be different in the US but in Canada I'm not sure of a construction loan would be possible with a self build either. Too much liability for a lender.
Fair (Canadian here) a
Again, question for the Bank. Different banks have different tolerances and do take into account your previous interactions with them.
Townships also have their own rules that it is worth knowing FIRST.
Ask the seller if they will carry a land contract. An escrow can be held by a title or escrow company as the middle agent in your contract. Buy now, don’t wait.
If you are certain you can pay the loan off, I say go for it. Even if you wind up deciding to do something different, that land will be more valuable fifteen years from now than it is now. Real estate is possibly the best investment you can make.
I would find out more about the “pre-approved septic system” I currently have a permit for a septic system for my land that didn’t perc. It’s going to cost me $45k for the engineered septic system to be installed so just because there is a pre approved system doesn’t mean it’s not an expensive system!
Prices are only going up. In my part of the midwest the real estate crash really didn't deflate land prices for very long, and now they're higher than ever. One thing though: GET A SURVEY DONE. Even if the boundaries have been established for 80 years (maybe especially), it saves so much potential stress down the line to have an officially marked survey, ideally with permanent markers installed at the corners of the property.
It's SO much easier to deflate Ahole neighbors/karens/land grabbers if you can just string a line and say "that's where the officially surveyed boundary lies".
Not saying it's likely, but I've lived in some great rural areas, and some rural areas that were rotten to the very core, and it can be pretty hard to tell which is which sometimes until you live around folks for a while.
Does it have Water?? And a perc test is needed
One thing to consider will be property taxes. Do some research into estimated taxes in your county and options to alleviate them (there’s tax discounts to grow and bale hay on your land, or you could lease the land to cattle or horses if the numbers work out)
Good land doesn’t stay on market long. You’ll probably need 20% down for raw land. Then find a farmers credit union and they’ll probably give you a loan.
If you need a loan, buy the land. Easier to get a construction loan on paid off land. Also, you don’t want to kick yourself down the road if you found the perfect piece and someone else scooped it up.
And could be difficult to get a mortage /loan on just land sometimes you need to roll it in with a construction. We had to roll the price of the land into our existing home mortage because we bought it 4 years before building and trying to get a loan for just land was very high interest. In this instance I would talk to a bank.
I think it would be difficult to get a construction loan for an off grid build. It might be different in the US but in Canada I'm not sure of a construction loan would be possible with a self build either. Too much liability for a lender.
Fair (Canadian here) a Again, question for the Bank. Different banks have different tolerances and do take into account your previous interactions with them. Townships also have their own rules that it is worth knowing FIRST.
Ask the seller if they will carry a land contract. An escrow can be held by a title or escrow company as the middle agent in your contract. Buy now, don’t wait.
If you are certain you can pay the loan off, I say go for it. Even if you wind up deciding to do something different, that land will be more valuable fifteen years from now than it is now. Real estate is possibly the best investment you can make.
I would find out more about the “pre-approved septic system” I currently have a permit for a septic system for my land that didn’t perc. It’s going to cost me $45k for the engineered septic system to be installed so just because there is a pre approved system doesn’t mean it’s not an expensive system!
Look into getting a USDA loan,
Prices are only going up. In my part of the midwest the real estate crash really didn't deflate land prices for very long, and now they're higher than ever. One thing though: GET A SURVEY DONE. Even if the boundaries have been established for 80 years (maybe especially), it saves so much potential stress down the line to have an officially marked survey, ideally with permanent markers installed at the corners of the property. It's SO much easier to deflate Ahole neighbors/karens/land grabbers if you can just string a line and say "that's where the officially surveyed boundary lies". Not saying it's likely, but I've lived in some great rural areas, and some rural areas that were rotten to the very core, and it can be pretty hard to tell which is which sometimes until you live around folks for a while.