Looking for advice on how to purchase property affordably.

Buying raw undeveloped land can be a great investment, or a means to build a home or business outlet. There are however, a number of special considerations and concerns when purchasing raw land that need to be addressed before, during, and after the process of purchasing your property. If you take proper precautions and consult the right lawyers and professionals, you can greatly reduce the risks and increase the rewards of your raw land deal.

Come up with a budget. Your budget will need to include money for several steps that most other land and home purchases do not, as well as the common expenses of purchasing land. Plan to include money for the following in your budget: Due diligence. You will need to conduct a lot of research regarding the land you want to purchase that is usually not necessary for developed land. Down payment: If you are purchasing the land to develop a farm or ranch, you may be able to obtain specialized loans, such as those offered by the United States Department of Agriculture Farm Service Agency.

Down payments tend to be higher for raw land purchases because things such as houses that banks could use as collateral for the loan do not exist on raw land. Your down payment may range between 20-50% of the total price of the property.

Conversion: This includes the costs for anything you will need to do to convert the land for your intended use, such as constructing a home, running sewer lines, etc

Carrying costs: This includes things such as the interest on your loan and any property taxes. Unlike residences, raw land is not considered to depreciate for federal tax purposes, so you can’t take a depreciation tax deduction for raw land. Just how much money does this work out to in dollar terms? Typically, for the down-payment and other costs, you should try to have about 20-25% of the purchase price available in cash as a rule of thumb. In addition, you should have a steady stream of income to cover carrying costs (like loan repayments). This will also help you qualify for any lending you may require.

Begin your search for available land: Once you have determined what you want to use the land for and what your budget is, you can begin the search for available land in your price range that meets your requirements. There are a variety of ways in which to begin your search. Scan local newspapers, query farmers in local rural communities, and research evictions, bank foreclosures, and tax sales. If you want to know how to buy land at affordable price you need to go through a real estate agent. This is a particularly good option when your search is somewhere out-of-state or far away from your current residence. Also, real estate agents are required to mention things like easements and highway improvements. An easement grants someone other than the property owner the right to use a tract of land, such as giving neighbours road access or the ability to ride a horse through the land. This limits how the land can be developed, so it's important you are aware before buying.

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If you want to buy government land for sale through auction, then the author of this article recommends GovernmentAuction.com.