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The first thing to do is place the acquisition of ranchland into a real
world perspective. You go out and buy a car or truck, any make or
model, it doesn't matter. You spend say $23,000.00 if you can get one
for that price.
Then you buy some undeveloped land that has road access so you
can drive to it in your new car or truck. From then on you can go and
camp on it or build a retreat or maybe your retirement home. You spend
say $23,000.00 for the land.
Now look at the two purchases ten years down the road. What remains of
the $23,000.00 you spent on the vehicle? What about the $23,000.00 you
paid for the land? Check the current blue book listings for any 10 year
old vehicle and compare it with the purchase price. Check the current
value of a piece of land you could have bought 10 years ago.
The vehicle may be worth a couple of thousand tops. The land will be
worth at least as much as you paid for it. In most cases land, held
over time will increase in value, like the blue chips of the stock
market. There are cases as in the area near Aspen Colorado where a
$35,000.00 condo that was bought in 1985 is now worth several hundred
thousand dollars. In fact there are a lot of those. 15 years ago they
were in the far out suburbs, and nobody wanted to live that far from
the action.
No one can predict when land values will increase this dramatically.
However you have to realize that these land owners bought out there
because they couldn't afford the prices in town. Few if any of the
landowners were speculators. They were people like you and me who
needed an affordable place to live. What we are saying here is that
undeveloped land is not a pure investment, but it is something to be
enjoyed or usefully worked while it is increasing in value.
The most important thing is that the land be suited to your
needs and lifestyle, when considering cost and in its location. You
must determine these facts by research. Research will provide you with
the knowledge so you can estimate the value of something.
Compare the land prices, seller service and quality.
Is the land accessible? Will the seller scrape the roads if needed? Do
you need to be near electricity or are you going to use alternative
energy for heating, cooling and power? Is the seller able to provide
service to the landowners after the sale? Does the seller provide a
website with links to home builders, house plans, generators, solar
arrays, well drillers, and sanitation systems? Does the seller have a
webpage so that landowners can exchange current and important
information such as cost effective information for building on the
land? Doing the research on your own is the key.
Always consider the reason you are buying the land and the things you
want to accomplish and how soon. Some land may be fine to hold for a
retirement project 20 years into the future, but the same property may
be inappropriate for building a retreat or home within the next couple
of years. The land seller should have many of your questions already
answered in a frequently asked questions webpage for the area
concerned. The seller should be capable of answering your specific
questions by email or phone or refer you to the maps links, weather
history links or county offices who can provide the most accurate
information.
HAPPY RANCHING... myEranch.com |
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