Best Types of Land in Northern California

Are you thinking about purchasing land in northern California? Making the commitment to buy land will require careful consideration, and our experienced agricultural consultant, Jason DurJava, ALC can help you complete a transaction as smoothly as possible, while getting the most out of your purchase.

The first step in purchasing land is deciding what type of land you would like, and what purpose you would like the land to serve. When it comes to choosing different types of land, there are a lot of options available, and each type has unique investment benefits.

Types of Land in California

California’s range of geography types makes it one of the most unique states in this country. We are one of the few states, in which you can drive to the mountains, the ocean, the desert, and the plains, all in one day. While this makes it convenient to live in our beautiful state, it can also make buying land at an affordable price a little bit more intricate.

Purchasing Farmland in California

In most cases, farmland is purchased in large acres with homes or structures and utilities already available. If you are purchasing a farm that is already functioning, you might be able to put the farm to immediate use, and begin producing a viable income from the land.

However, farmland is not always the best choice for purchasers looking for land. Before purchasing farmland, it is a good idea to look at the types of crops the land produces, the types of animals being kept on the land, as well as figuring out if you are equipped with the right farming skills to make the purchase a sound investment.

Acreage in California

When most people are entertaining the idea of purchasing land, they think of acreage. Acreage is land that has not had any development. It is an empty plot of land with no clearings, and usually no utilities, water, or available sewer. The amount of acreage plots for sale in California can vary a lot in size.

Depending on the location of the acreage, they can also vary greatly in prices. In some locations, a few acres of undeveloped land can be more expensive than a fully developed property with a home - while in other locations, you can find hundreds of acres at a practical price.

Purchasing a Ranch

The term “Ranch” and “farm” are sometimes used synonymously, even though they are different types of properties. Ranches are different from farms in that they primarily produce livestock, while farms primarily produce crops. While crops can also be grown on ranches, ranch properties typically come with far more acres for animals to graze. Similar to farmland, you should make sure that you have experience running a ranch or skilled employees to run the property for you. Otherwise, you might have a hard time getting the property functioning, and you will see a negative return in your investment.

Commercial Land

If you plan on using your land purchase for commercial development, you should look for commercial land, since they are generally located in commercial zones. This way, you can begin building quickly. Generally, the type and size of commercial land can be more expensive, depending on location. Land for commercial use often produces a great return on investment.

Recreational Land

As the name suggests, recreational land is used for recreational activities, like fishing, hunting, hiking, or other outdoor recreations. Recreational land is usually zoned as seasonally residential, meaning that you will not be able to construct a permanent residence on this land without rezoning. However, if you are only trying to build a hunting cabin or seasonal vacation spot, then this is a good alternative for you.

Choosing a Loan For Purchasing Land

When it comes to purchasing land, you usually have the option to buy it with cash or take out a loan. If you do not have the available money to outright purchase a property, loans can help. However, unlike purchasing a home, loans can be harder to attain when buying land. Loans are somewhat more precarious when buying land, because the property is not solely being used for housing. ​​​​​​​

Most lenders are more skeptical about being left with undeveloped land, and will sometimes have higher down payments with higher interest rates than traditional mortgage loans. If you plan on building immediately after purchasing land, you will also need to receive a construction loan that can sometimes be converted to a mortgage, after construction is finished.

Want to learn more about obtaining a loan for land purchases, or types of land available in northern California? Call our experienced agricultural consultant, Jason DurJava, ALC, today at 208-431-0400.

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