What do you think of buying a 12-acre parcel of land; not to build on, but just to have?

For the record, I am not a home owner. I rent an apartment.
I do not make much money, only about 30K a year. I do not
feel emotionally prepared to buy a house right now. However,
I would like to buy a parcel of land outside of town, something to call my own, and possibly someday build on. If nothing else, just keep it and hold on to it, and always know it’s there. The asking price of the parcel is ,000. I could get lost in 10 acres of land. The payments wouldn’t be that high on 88,000 assuming a 15 year mortgage, so I could afford both the land payment, and my apartment rent. Are there any special considerations when it comes to buying land? Are banks less willing to make loans for land? Any info you could share would be much appreciated.

7 Responses to “What do you think of buying a 12-acre parcel of land; not to build on, but just to have?”

  1. Charles Says:

    It is a good idea my friend, but there are some considerations that you need to take into consideration.

    1. Is the land in a good location? (not beside a coal power plant, or something undesirable)

    2. Is the soil suitable for a well and septic tank? (this is a test they do when they dig holes in various locations to see if the water drains properly)

    3 Are there trees on the property? – big enough trees can bring in some needed dollars.

    4 Will the land need to have significant changes made? (Bull Dozing and further grading is expensive work.. I do that work off and on. can get up to 150 dollars per hour!)

    5 Is the property residential? – make sure the property is zoned correctly for what you are planning on using it for.

    6 are there any land restrictions? some areas of land have restrictions such as ( no trailers, modular homes, chicken coops, junk cars, etc…) this can be foud out at the register of deeds office.

    7 Is there a claim, or second mortgage on the property? Make sure that you are not buying someone elses problems, it is possible to buy property and get burned with an unsettled mortgage that the previous owner "forgot" to tell you about. you can find out if there are any claims by paying a lawyer to find out, or if you are knowledgeable go to the clerk of courts office. They should have a computer set up so that you can check for claims on the property.

    these are just a few things that i would suggest you think about.

    The land will most likely appreciate in value as well, as the world is getting more filled with people. You will have something that everyone needs, and that is a good investment to have.

    I wish you the most of success!

  2. Wylie Coyote Says:

    Go for it. It used to be that they would not borrow on raw land, not any more. The rule is buy real estate and wait, not wait and buy real estate. You have already talked yourself into it, now get off your duff and do it. Loans are at good rates now. Make sure you have utilities, and that it perks. If you can, get it contract for deed.

  3. PIE R SQUARED Says:

    Loans for land are hard to find and if you find one, it is usually a maximum of 50 percent of the value.

    Instead of buying land that will not give you any income, invest what you would be making in payments in some kind of investment that will give you a good return.

  4. Ron Berue Says:

    Raw, unimproved land is known as "An Alligator".

    Your land will eat money – LOTS of money. YOUR MONEY.

    Zoning officials and county officials COULD OR MAY change the zoning and other lot requirements of your land on a regular basis.

    UNLESS you are going to build OR get the land sub-divided into approved building lots A.S.A.P., you could be buying a "pig in a poke."

    Thanks for asking your Q! I enjoyed answering it!

    VTY,
    Ron Berue
    Yes, that is my real last name!

  5. treyprice04 Says:

    Find out how much the taxes would be. If you are just buying the land to have it might just be better to save some money up and not have to pay taxes on land you aren’t going to use.

  6. Christopher B Says:

    I would be very sure about the price you are paying for land right now. Land typically appreciates in value slower than developed property. And in a lot of places, the value of land is greatly inflated due to the recent real estate bubble that is slowly popping. You may buy it at $88K, which seems like a great price. However, if the value was inflated, then it may lose quite a bit of value before this real estate recession is over.
    On the bright side, a large chunk of land like that allows you freedom to do a number of things with later on. Check with your local planning and development board and make sure there are no restrictions to a. build on it, b. subdivide it, and c. rezone it to something valuable (like commercial, or residential).

    Also, just because you can afford it, doesn’t mean you should buy it. A lot of people are in trouble right now because they bought property that they technically could afford. Sure, they were living expenses and bills equaled about 95-100% of their income, and they were constantly living on the verge of distaster – but technically they could afford it. Most experts agree that we should live around 65% of our income, and put the rest towards investments, and savings.

  7. Big Deal Maker Says:

    What ever reason you decide on purchasing the land or not.
    Please do your due diligence on the property.
    Be sure it is build able. How close are the utilities to the property.
    Be sure you use a reputable real estate agent to make the deal in your favor.
    The price of the land may at this time be worth less due to the current market trends.
    Besides the down payment you would be required to put down.
    This is a larger than normal down payment as it is not livable as a home would be.
    You will be paying higher interest rates as it is being purchased as an investment property.
    Best of luck in your adventure