[Giesela]

I'm having trouble finding out enough about this to figure out whether I want or can afford to buy some "hunting" acreage.

-Apparently the interest rates are higher? (why?)
-The loan time period max'es out at 15 years? (Why?)
-Is it true you can usually only borrow locally? (as in what if you live in Ohio but buy in Michigan, do you have to borrow from a local Michigan bank?)
-Is it true that in order to get a loan the property has to be buildable? I.e. if you buy 50 acre's at least some small spot has to be buildable, even if your not going to build, or you have to pay cash?

What other differences and issues are there to know?

I understand generalities like waterfront is going to cost more, property without road frontage needs clear legal access/easement and should be cheaper - some of these rules of thumb seem the same as buying a house lot. But there seem to be some big differences in buying vacant acreage and I'm not sure I've managed to track it all down.

I have been a little shocked at the per/acreage prices I've seen. They've gone up A LOT in the last 10-15 years. Not sure what that's all about. Outside investors parking money?

(I'm not a hunter, but looking for that acreage to enjoy wildlife, outdoors, birding, fishing, maybe retire on etc. amounts to the same thing when your looking on real estate sites).

[wagonproject]

Well I really can't answer your questions as I haven't bought land only being 21. But I inherited over 2000 acres of land (farm land). I have sold a few properties though. I'm not sure where in MI your looking, but you have to take into account what the land is zoned also to play a part in the price. Yeah property values have gone up, but that doesn't mean their selling. Less then a year ago I sold a 10 acre parcel (people around here want between 5-10 acres if not in a neighborhood) for $120,000. But I have a harder time selling a 40 acre parcel as really my only people are developers and someone who wants to pay that much just for land. Yeah not a lot of help, sorry.

[dragon_fly_12]

Yes, the percentage is higher and term shorter to make the purchase. We purchased acreage in MI with the help of inlaws living in OH, purchased in 2005.

2005 was a lot easier to get a loan. We were approved with no down payment but paid several points more in APR than the going rate (8%). The bank was national (5/3) and we went through a local broker. The term, I believe, is 25yrs.

Believe me, I just got financed for a car last month, THEY ARE NOT LENDING LIKE THEY USED TO! National banks are tightening down the terms with bigger down payments and lower debt to income ratios. Local banks are being a little more generous with a little more flexibility, but you have to live locally to get financed locally. For instance... you would need to look at the local banks to your primary residence, not the banks near the prospective property. It is very, very hard to get financed right now and you might have better luck with a land contract purchase if you don't have a big down payment.

For tax purposes: make sure your purchase is at least 100 miles from your primary residence. If it is less than 100 miles, the federal gov't will view the property as "income" property, if it is over 100 mi, then it is considered a "second residence" property and you can claim the interest and taxes paid on your yearly taxes.