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Buying land close to your farm but not attached

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  • Buying land close to your farm but not attached

    Who has this set up?

    There is some beautiful land that I trail ride on behind my house that I'd love to have - even if just a little of it. I just ride my horse out my back pasture and thru a short wooded trail and it opens into probably about 40 acres of field and about 50 more acres of field above that.

    I don't even know if the owner would sell some, but wondering if anyone has land that is not attached to their farm, but used as an expansion of their farm. How does it work out for you and what do you use it for?

  • #2
    I know lots of farmers that lease land not contiguous with their own property. They farm on it and grow everything from row crops to hay to cattle. Buying it is trickier, as you have to come up with 50% or better of the price in cash, banks don't like to lend on raw land, and your investment return is only going to come when you sell it off to some developer probably, or worse yet subdivide it yourself. Most of us can't afford to buy it to conserve it. You still have to insure it against liability and you may have the issues of tresspassers etc..
    I do know of some homeowners that have bought unbuildable lots (= really cheap) in order to make their yards larger, or to have a place to camp, or park guest cars, and my family at one time sold a beach front lot, a very steep and hard to build on lot, to the fellow up the hill. He protected his privacy and his view and got another parking space.
    Courageous Weenie Eventer Wannabe
    Incredible Invisible

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    • #3
      I don't have that situation, but one thing you need to think about is that in some states, since the extra property doesn't touch your present property, is that you can't use a homestead tax on the second piece. (You have to use the homestead tax on one or the other piece.) In our state, the other piece would be taxed at double the percent as the original piece. Just something to look into.
      Judy

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      • #4
        Another thing....You also have to figure a way to legally access it from your present property. What happens if the land dividing the two pieces becomes unavailable to cross over??
        www.crosscreeksporthorses.com
        Breeders of Painted Thoroughbreds and Uniquely Painted Irish Sport Horses in Northeast Oklahoma

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        • #5
          In the case of farming, the property owner becomes eligible for any ag exemption. We had a beekeeper friend who leased a "borrow pit" on a large hobby farm/estate and his presence qualified the estate for the ag exemption. Homestead no, but you wouldn't be able to apply a homestead exemption to an investment property such as a rental home either. And usually farmers access non-contigous parcels via public roadways - not always the best for horsepeople.

          Yet one more option is an easement, which might work if, say, the same guy owns the woods and the hayfield - then you make offer to purchase a certain amount of his place with an easement to get there and have the whole thing surveyed out and drawn out legally. The property behind me sold in just that manner, the family wanted to keep the house and dispose of the rest after they kicked the cows off of it, the buyers took the whole chunk (and boy did we kick ourselves but the owner had already sold off a portion to this buyer a few years ago, he was just honoring a previous agreement to give them the first option) but they asked for an easement to go down the house driveway that runs parallel to HorseyNeighbors lot line.
          Courageous Weenie Eventer Wannabe
          Incredible Invisible

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