I'm completely green at this. Never done it before and never discussed with my dad before he passed away.

I'm toying with the idea of purchasing about 5-10 acres somewhere in the triangle of Austin/San Antonio/Columbus. Preferably undeveloped with plenty of trees.

The purpose would be to have a spot to take the family campouts, and to partially sit on it with the possibility of building in the future or selling for profit.

I really don't know what questions to begin with when discussing with an agent. I'd be concerned with restrictions, existing utilities if any, and proximity to hunting leases and future commercial/residential development. Also if it is in a flood plain or history of country fires (Bastrop for example).

Is information like that readily available to agents or does it take quite a bit of digging? What other questions could you suggest for a rookie?

Thanks.

mm98 said:

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I'm completely green at this. Never done it before and never discussed with my dad before he passed away.

I'm toying with the idea of purchasing about 5-10 acres somewhere in the triangle of Austin/San Antonio/Columbus. Preferably undeveloped with plenty of trees.

The purpose would be to have a spot to take the family campouts, and to partially sit on it with the possibility of building in the future or selling for profit.

I really don't know what questions to begin with when discussing with an agent. I'd be concerned with restrictions, existing utilities if any, and proximity to hunting leases and future commercial/residential development. Also if it is in a flood plain or history of country fires (Bastrop for example).

Is information like that readily available to agents or does it take quite a bit of digging? What other questions could you suggest for a rookie?

Thanks.

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Realtor for rural property would be a good place to start. Beforehand though, I would just google everything you've got questions to and seeing what shows up. Flood plains are usually available at the county level.

I would get on HAR and see what's available where. 5-10 acres might not be available in the areas you want. Probably the land is either subdivided more than that or still in large plots.

If you're in need of any financing > Capital Farm Credit. Happy to point you in the right direction if needed.

I'm not much help but read this thread. Not your situation but good points

https://texags.com/forums/34/topics/3085016

Thank you all.

I agree with the above about finding a rural realtor. Here are some things to think about:
Mineral rights (this can be complicated - read up on it and get a knowledgeable attorney involved before purchasing)
Status of existing Ag exemption/wildlife exemption
Road frontage
Existing adverse easements (pipelines, powerlines, etc.)
Flood zone
Neighborhood
Distance to major highways (noise)
Condition of fences

Utilities!!!! Water and electric.
Know who the providers are and what fees they require and their ability to serve.
Roadway access/frontage.
Drainage and slope of property
Soils will matter for many things including septic
Edwards aquifer zones
Environmental issues
Oak wilt?
County requirements for permits
County transportation plan
Understand all Easements
If it's less than 10 acres make sure it was platted. If not; it's likely an illegal subdivision and will have no entitlements grandfathered. Can happen on tracts greater than 10 acres too but it's almost a guarantee on tracts less than 10.

Well quality.

Uncle bought land on condition of the well passing inspection, and it didn't, so the prior owner had to pay for the new well to be drilled. You wouldn't want to pay for that yourself.

Check out the folks at Riverstone Companies https://www.riverstoneranches.com/. They're a ranch brokerage that does exclusively rural land in the Texas Triangle-based out of College Station.

My husband is a realtor specializing in rural properties/farm/ranch and would be happy to talk to you and answer any of your questions! Give him a call:

James Hammond
817-525-0851

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or selling for profit.

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Don't finance! Unless you can get a crazy low rate any appreciation in the land value over your lifetime will likely be eaten up in interest payments. Land does and will continue to appreciate in value over the long term but the way the amoritization tables work you frequently end up paying in interest almost what you paid for the property.

Kenneth_2003 said:

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or selling for profit.

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Don't finance! Unless you can get a crazy low rate any appreciation in the land value over your lifetime will likely be eaten up in interest payments. Land does and will continue to appreciate in value over the long term but the way the amoritization tables work you frequently end up paying in interest almost what you paid for the property.

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But that kills your opportunity costs of the free cash you have.

I've you've got $1,000,000 invested in the property as opposed to $200,000 that $800,000 difference is basically 'invested' at the interest rate. Compare that to $800,000 in the stock market over the same time.

Yes you pay for interest that over the life of the loan can exceed the original value of the loan, but you're paying to keep your opportunity cost.

Fair point yes. I should have been more specific. If one of the possible outcomes is to view the property as an investment to later sell for profit, be mindful of the interest rate on the financed balance. If you can pay cash, the amount in cash vs finance is dependent on your interest rate and risk tolerance. If on the other hand you put your 20% down because you can afford the payments... The balance of the loan isn't invested. You'll never recoup that interest paid due to property appreciation.

I know someone mentioned county requirements, but it's also good knowing who's jurisdiction the property is in to begin with: the city or the county. Most smaller cities only have a 1-mile extraterritorial jurisdiction, but it's 2-3 miles in other cities.