Have any of you bought land before? Are there any gotchas or things you should look out for like possible scams or warning signs, additional expenses that most people don't expect, etc. I'm looking to buy about 5-10 acres in the next couple of years to possibly build a house on in about 10-15 years. Do you know of any good sites, forums or books with information regarding this? I'm just researching right now.
No different than buying a house. Decide where you want the land and go from there. If you have x amount, you can consider it farmland and write it off. I wish I wouldve bought some of the land in between dickinson and league city a few years back when it was availible. Now its crazy there and someone got paid big time.
I would say taxes are a big concern. Unless you think that the land will just sky rocket in value, I would say take the money you would have used to buy the land and the money you would have spent in taxes and up keep... invest it... and buy the land when you are ready to move forward.
Deed search and survey are good ideas that cost more. Depending on where you are buying the land it is good to have someone with cows or something on it so they will keep it up and mowed. Plus you can then claim an agricultural tax credit.
Here are two words for you: "title insurance". And as a bonus, three more words: "real estate attorney". Or, if you want to save a few grand, just roll the dice and hope it all works out for the best. But understand that if something goes wrong, you can't just return land like returning a toaster to Target, nor can you simply give it away - you're stuck with it.
Things to consider: Mineral rights ETJ's or who controls your development approvals and what development rules apply water access ie. subsidence district control of wells sewer access or local septic tank rules electrical access rights of way and easements land use controls or lack thereof for your neighbors ie. pig farms, gas wells etc. drainage issues ie. floodplains and runoff storage requirements Title issues MUD district and MUD taxes Tax designation rules (Ag or not) If you are out in the country, your county commissioner is a good place to start.
Thanks for the ideas, guys - I appreciate it. Dubious, Your comments about mineral rights, water/sewer access, etc. was along the lines of what I was looking for.
As long as you're buying to build your house, I'm all for it! If you're buying to hold on to raw land, let me convince you otherwise.
Please convince me! i have heard good things about buying raw land as a future investment to sell later to some franchise. I feel like the opinions are biased b/c the people involved had good insight and a few lucky breaks. I feel like they were the exception, not the norm.
Back before the oil bust of '88 I used to be a Landscape Architect/Land Planner and worked on these kinds issues in Ft Bend County. There used to be Realtors that specialized in rural properties that would be pretty knowledgeable about most everything. They were usually plugged in the the County Judge and the local politics too. There probably still are some and they would be worth their %.
exception...not the norm. raw land is risky as hell. i'm not a believer. and i work with a group that buys, manages and turns over distressed assets! ask the people who own raw land in Galveston right now how that's working for them.
Point taken, don't get involved unless you know what you are getting yourself into AND have the appropriate income to absorb the risk
Have your builder look at the land and give you an idea on the clearing/builup costs. I only bought an acre, but ended up spending $15,000 on clearing and dirty buildup (which is almost what a I paid for the acre). Also get soil tests done. If you have "bad" soil, you could end up with alot more dirt work prior to building.
Well, thanks a whole freakin' lot. lol. Actually I was going to buy now to build on maybe 10 years down the road. I was looking to see if I can find some cheaper acreage now in tougher times when I see people selling land and prices dropping (or it seems like it anyway - I haven't looked too seriously).
