Before you pack your belongings and head for the hills, weigh the benefits and drawbacks of owning land to determine whether life on a property is appropriate for you.
Purchasing land to live on is a little more challenging than purchasing a standard home. You must examine concerns like zoning, water supply, utility connections, and land access. Organising money is also more difficult than obtaining a standard house loan.
Buying acreage for investment?
We also know that buying acreage as an investment is something that a lot of people struggle with. One article that sums it up greatly is from Lion Realty and you can read about what makes buying land a good investment here. While it doesn’t specifically focus on acreage, Lion Land Marketing are very knowledgeable about buying and selling land as they constantly are helping people sell land within South East Queensland with over 30 years of experience in matching land with prospective clients. Definitely check out their article and visit them for more details on properties if you’re looking to purchase or sell.
What is an acreage?
It might be difficult to grasp the scale of certain rural properties until you see them in person.
- 1 acre equals 4,047 square metres
- 5 acres is 20,234 square metres
When you compare that to the typical block size in Australia, which is roughly 200-350 square metres, you can see how large an acre is.
As a result, homes of this size are typically found in rural parts of Australia or on the outskirts of big cities.
Buying Acreage: Top tips
If you’re thinking about buying an acreage, keep the following suggestions in mind:
- Examine the zoning. Check with the municipal government to discover how the property is designated. A property classified for conservation, for example, may have limits on removing land and construction, while homes in flood and bushfire zones may have additional requirements.
- Provision of water. Check to check if the property has city water or if you will need to bring your own water. If you must source it yourself, where and how does the water come from? Do you have the requisite abilities and expertise to keep the supply flowing?
- Utilities. Check to discover if the property has a sewage hookup in addition to water. Also, find out how much power will cost you to connect, and look into the quality of mobile and Internet service in the region.
- Space use. Consider how you will use the area before purchasing. Mowing may become a time-consuming operation on certain sites if animals are not kept to assist keep the grass short. Some blocks, however, such as highly forested or slope and rocky estates, will not need as much mowing.
- Be rational not emotionally driven. It’s easy to be drawn in by the romanticism and natural beauty of a huge country estate, but don’t allow your emotions to take precedence over your mind. Before you make a choice, evaluate all of the advantages and drawbacks of purchasing land, including the care necessary.
There are several reasons why individuals are enticed to leave a big city or town and relocate to a large rural estate, including:
- Space. You’ll have plenty of space to move about and won’t be living on top of your neighbours.
- Relaxation. Peace and tranquilly are the main phrases to remember here.
- Possibilities. From playing with animals to riding dirt bikes, fishing, and just much everything else you can think of, living on a large plot of a property provides you with a plethora of outdoor activities.
- Fresh air. Moving to the clean, pure air of the country might work wonders if you’re weary of the smell of automobile exhaust and the pollution of the city.
- Nature. Moving to an acreage allows you to leave the urban jungle behind and explore your passion for nature, whether you prefer a large, rambling garden or the natural settings of the Australian bush.
- Animals. Want to own dogs, cats, horses, and poultry while also getting up and personal with native Australian animals? An acreage provides you with the necessary room to do so.
- Prices. The further you are from a metropolis or significant town, the lower your property prices should be. This implies that when you acquire land, you receive a lot more bang for your dollars.
However, there are certain disadvantages to purchasing an acreage, which you should be aware of before signing anything.
- Maintenance. The larger the property, the more effort it will require to keep it functioning. If you want to live on an acreage, you must be willing to put in the effort.
- Cost. The constant maintenance of a home is also costly. You’ll need to budget for anything from mowers and brush cutters to power equipment, fences, pool upkeep (if necessary), and pest treatment.
- Facilities. Where you live in some regions of Australia can have an impact on your ability to receive phone and Internet service, while public transportation coverage is limited or non-existent.
- Work. Many folks may have a long commute if they move to an acreage. This issue can be avoided if you work from home or find work closer to your new house.
- Bushfires. The threat of wildfire is quite serious in several places of Australia. If you live in the wilderness, you may need to be prepared to cope with the threats posed by natural disasters.
- Animals. Not all Australian fauna is nice and cuddly; be prepared to encounter snakes.
So should I invest in rural land?
Rural land has increased in value around the country, but notably in Queensland, where it has increased in value over the previous year. One explanation for this is that the current epidemic migratory movement from cities to rural land builds on a tendency of migration from Victoria and New South Wales that has only accelerated. In general, the value of rural land will rise in many regions of the country, particularly in Queensland, in the coming years.
Our Advice: Do your homework
Of course, investors must first do their homework, and if they are new to land investment, this includes understanding what separates land investing from equities investing. Property is not as liquid as shares, for example, and investors who are not well prepared or counselled risk overpaying for the land, as well as any upgrades or add-ons they think essential or desirable.
Doing the necessary research requires not only understanding where possibilities exist and what regular market values are in any particular region of the country, but also comprehending the tax law and how mitigation and conservation easements affect the economic case for land investments. Many investors do not take advantage of these tax breaks for obvious reasons, but that does not mean they have no favourable influence on predicted profits.
Rural land investment is not as fashionable or enticing as investing in Internet enterprises. However, guess what? Land investors sleep comfortably at night because they know they are investing in a solid asset with little volatility. Even more so in 2021, the rural property will provide a plethora of chances for investors prepared to look outside the box, which means returning to an investment class that has demonstrated its usefulness and stability for generations.