Buying an acreare

[graham1]

Hi folks.
After my marriage ended 5 years ago and I had to move to town I’ve been working my tail off to scrape together enough money to get back to an acreage.
Finally found one with an older, modest home that I can afford.
I built the one I was on from scratch so I’m pretty familiar with things.
Wondering if there’s anything you guys think I should pay attention to that I haven’t thought about.

It’s comes with lots of good water and a fairly new septic system.
Older folks moving out who have lived there forever. And have obviously taken care of the place.

And I’ll be getting an inspection done.


Thanks for any tips.

[AndrewM]

Water and septic were the biggest cost drivers outside structural integrity of the house. Insurance will be much higher. Usually the bank will loan you on 5 acres if I remember correct so if you have more it will not count so you may have to put more down.

[buckbrush]

Well if you came off of an acreage You probably know about yard work and snow removal, dumpster costs ect.

These were a few things I under estimated. Figured a quad with a blade would be more than enough.

Ended up buying a bigger lawnmower and skid steer in the first few years.

[KC1]

How close to nearest feed lot/ hog farm/ chicken farm.
If bothered by smells/noises don't do it.

[tri777]

Originally Posted by graham1

"...Wondering if there’s anything you guys think I should pay attention to that I haven’t thought about."

I would never buy any land until I checked it out after a good heavy/few hrs of rain from the same or previous day.

[Dean2]

Talk to the neighbors about smells, drainage, weed issues, how good is the County at keeping roads up, any bad or dangerous neighbors, rampant breakins etc. It is amazing what you can find out over a coffee that the existing owners or a realtor would never tell you. Take a Thermos of Tims and some donuts and pretty much everyone will have time for a chat.

[270person]

Biggest chance for problems on an acreage are usually the neighbours. Some people get a little space and figure they can do whatever they want to.

[graham1]

Thanks for all the tips folks.

I’ll do some digging for sure 👍

[Red Bullets]

Just my two cents.. for what it's worth

I'm mentioning selling an acreage because a person can buy an acreage and in 5 or 10 years decide to sell.

Talk to a tax man about selling an acreage too. (I was told this but please correct me if I'm wrong)
I believe that if go to sell an acreage if the acreage is over 5 acres you may have to pay a gains tax on every acre over 5 acres. 5 acres is considered the primary residence and any extra acres are deemed differently regarding taxes.

And if you have an acreage and can show that it produces so many thousands of dollars per year (not sure but around 7K) from the land doing 'farming' related activities you may be taxed as a farm. Acreage land tax might be 2K to 3K per year. Farm tax might be 500 bucks to 1K.

A person is wiser to buy an 80 acre parcel that is functional. Pasture, crop or hay lands will generate income. Can be rented out. Also any oil leases on the land could generate a little income. If bush land you can hunt and forage right at home. More options on what you can do on 80 acres as opposed to an acreage. Neighbors are maybe not as close as acreages too. As far as prices an 80 acre parcel can be the same price as an acreage but the 80 can generate money.

And one thing to consider in my opinion is building a home in treed areas among other acreages has the hazard of forest fires. When considering the land to buy take a walk through any bush on the property and see if there is lots of deadfall and forest debris. It it is mature forest?... in 10 or 20 years could it become old trees falling down and a higher hazard.

[AndrewM]

Originally Posted by Red Bullets

Just my two cents.. for what it's worth

I'm mentioning selling an acreage because a person can buy an acreage and in 5 or 10 years decide to sell.

Talk to a tax man about selling an acreage too. (I was told this but please correct me if I'm wrong)
I believe that if go to sell an acreage if the acreage is over 5 acres you may have to pay a gains tax on every acre over 5 acres. 5 acres is considered the primary residence and any extra acres are deemed differently regarding taxes.

And if you have an acreage and can show that it produces so many thousands of dollars per year (not sure but around 7K) from the land doing 'farming' related activities you may be taxed as a farm. Acreage land tax might be 2K to 3K per year. Farm tax might be 500 bucks to 1K.

A person is wiser to buy an 80 acre parcel that is functional. Pasture, crop or hay lands will generate income. Can be rented out. Also any oil leases on the land could generate a little income. If bush land you can hunt and forage right at home. More options on what you can do on 80 acres as opposed to an acreage. Neighbors are maybe not as close as acreages too. As far as prices an 80 acre parcel can be the same price as an acreage but the 80 can generate money.

And one thing to consider in my opinion is building a home in treed areas among other acreages has the hazard of forest fires. When considering the land to buy take a walk through any bush on the property and see if there is lots of deadfall and forest debris. It it is mature forest?... in 10 or 20 years could it become old trees falling down and a higher hazard.

I definitely didn’t pay a gains tax on 27 acres. But good to confirm regardless.