Becareful what you buy in the country (Fredericksburg, Howe: for sale, rent)

[doss1]

Some of ya'll may remember my hunt for some affordable land out in the hill country. I've posted pics and some stories of my travels in this forum plus I've occasionally linked to my land blog. Recently, I looked into purchasing 10 acres west of Fredericksburg as an investment. I never really look at a piece of property as an investment--I look at it place where I would like to live. This prevents me from buying something that may be hard to sell down the line. I figured that if I liked it enough to live there, then I am sure someone else would like it and buy it too.

So, I scoped out the land and thought it was a good buy. 10 acres was too small for me but the price was perfect, especially since it had some basic infrastructure already implemented (water well, electricity). I contacted the broker for a plat map, topography, deed restrictions and payment terms. The plat map showed the basic dimensions and shape of my land--a perfect rectangle. Everything looked great. The previous owner already has cattle grazing on the property for an agricultural tax exemption, and he'll leave it on the property if I gave him permission. The setting was beautiful and it was away from major traffic. A lazy country road served as the frontage road and off in the distance I could see some deer and a doe. A sleepy town was not too far down..maybe 2 miles. The owner was also offering financing (good if you don't have a lot of credit history like I do).

Did I buy?
No.

I decided to kill off because something interesting happened. I noticed that a ranch was purchased adjacent to my potential property. I also noticed that according to the plat map, my property would have been in the middle of 3 other 10 acre parcels. This is not a problem for most people, but out in the country, 10 acres surrounded by parcels the same size becomes small very quickly. You can still hear and see your neighbors, especially if they build a two story house. However, the kicker that killed the deal was the ranch that was purchased adjacent to the property. Why? Because further investigation showed that the ranch was being divided into tons of 3 acre parcels! Too claustrophobic for someone like me looking for space.

Yes, it is probably still a good investment, but I'm looking for something that I can use right away. The moral of the story? Make sure you do full scoping and research. Make a list of items your land must have, then add a few optional items that you would love to have, but not necessary need. Talk to your potential neighbors--ask them if anyone has sold their property adjacent to yours.

So, the search still continues....

[blueskies49]

Interesting! Thanks for your insight!

[aaauger]

A lot of people move to the country for the exact reason that it's affordable. So you may get: small properties, badly maintained properties, industrial properties. The only answer is to buy a property large enough to isolate yourself. Even then, you need to research other potential effects like water rights and air quality.

[Canine*Castle]

TexasNick, you are definitely intelligent and are thinking clearly about all aspects of the peace and tranquility for which you're searching. Keep up the good work.

[desertsun41]

Well the first thing that came to my mind is if one person got approvals to sub-divide then that makes the adjacent parcels even more easy to sub-divide because city council and zoning are already warm to it. You didnt say how much this lot was but lets say $10,000. So you go through the red tape of getting the parcel divided into three 3.33 acre lots. Now you sell each one for $6000.

There are a lot of people out there who would kill for a 3.33 acre lot to build on. People who are not interested in feeding cattle. People who want to build their dream home without all the landscaping that comes with 10 acres.

I never saw your old post you mentioned with the pics. If it is still around I wouldnt mind if you reposted the link for us.

[doss1]

Oh I know that desertsun, but the main point of getting out into the country is to get away from the rat race, right? It does not help when you have a new housing development going up next door.

[atxcio]

Desertsun,

I was thinking the exact same thing. If the adjacent parcels are being successfully subdivided, it's a very positive value indicator, and a 10 acre nearby plot (assuming access/utilities are the same) would be a very solid investment.

TexasNick, you wrote that you were looking at the property from an investment standpoint. By my reasoning, it would look very good in this regard. Granted, you'd have to place your house strategically in the 10 acres in order to avoid seeing/hearing your neighbors... but when it comes to resale, you'd be in great shape. You could even sell off 2/3 of it and rent out the house you build for major cash flow, or just wait until the 3 acre lots cost as much as your 10... won't be long, probably.

Yes, you *might* have to deal with neighbors for a little while if you lived there, but the desirability factor of your land might be going thru the roof at the same time. Very fair trade-off.

If you don't mind, whereabouts exactly is this 10 acres? Is it still for sale?