Homesteading Economics-Purchasing Land

So you want to live on a homestead.

You've dreamed about being self sufficient and saying goodbye to the powers that be. Be it your 40-80 hour job, your boss, the utility companies, grocery stores, etc. You've studied and practiced your homesteading skills for years. You grew a small, postage stamp garden. You raised small animals (chickens, rabbits, quail), bred them, and butchered them for your dinner. You've paid off all your debts. You've squeezed every penny into quarters to save enough money to buy your homestead property, house, and equipment outright for cash. You've even saved up enough cash to keep you going for the first year or so.

You're ready to take the plunge.You think you've found the perfect piece of land.

WAIT!

Before you buy that parcel of land, do some research before you buy. Some things to consider...

What are the property taxes like on your parcel of land?

This is important. So many properties go to auction because of unpaid taxes. You need to have a plan for this escalating item. In one year, the property taxes on my old homestead doubled! I'm talking about an increase of thousands of dollars. Have a plan in place if this happens to you.

Are there any exemptions that work for you and against you?

The standard is the Homestead Exemption (US). If you own a property and live on this property you qualify for this. But there may be more advantages and disadvantages to live on a homestead. For my husband and I, in the county we lived in there was an exemption from paying school tax (a large part of your property tax) if you were childless or empty nesters. For us, it lowered our property taxes several hundred dollars a year.

Are you a disabled vet, will/can you get your power (off grid) from solar, or any other thing you can think of for added exemptions.

This needs to be part of your decision making process whether you live in a particular county or not. It pays to do your research. It can save you hundreds or cost you thousands.

Could there ever be a right of way or can your property be taken over in the future?

Don't laugh and say no. Even the most out-in-the-middle-of-nowhere properties have been bought by the governments (county, state, federal) for development of bases, roadways, government facilities (to name a few) whether the present owner wanted to sell or not. Liens for the common good.

There's no way short of a fortune teller to know for certain, but there are indicators.  When looking at my previous homestead, the county proposed to make our road a major thoroughfare between two major highways. All of our sleepy suburban community would be no more if this happened. One landowner  decided to build a five-acre fish pond on his property successfully taking our road out of the suitable choices category. He even had this pond stocked for free by the DNR (Department of Natural Resources). He allowed several homeowners to fish his pond. A bit underhanded... yes, definitely, but this land owner did it while it was his land (paid for in full). There are ways to fight city hall.When looking at our property, it would cost too much to develop into something else. So the chances of a lien for the common good being placed on it is highly unlikely.

Are there any restrictions to farming or meat production?

Yes, different counties have very strict zoning and zoning can change.  Just because today you have 10, 25, 50, or 100 acres that can be used any way you see fit, the powers that be may have different ideas.One county in GA changed the zoning of a 40-acre tract of land from farming to build a federal penitentiary on it. Wouldn't we all want to homestead next to that?! As a result, the surrounding area's property value dropped. So if you were looking for an expansion loan on your property, you might not be able to.

Counting on composting your own waste, and the use and harvesting rain water?

You'd think there wouldn't be a problem. What you do with your own and natural resource shouldn't matter to anyone else, right? Wrong. Some counties have laws against this. You have to have a regulation septic system (the kind they want you to have) or tie into their sewage lines. The same goes for water. You may not be able to dig your own well, harvest rain water for other uses, nor put in a biofilter for urine/grey water to water your trees.

Do you have enough land to raise large animals?

There are local regulations. Just because you've seen them doesn't mean your property can have them on yours.Zoning laws may have changed. The county my father lives in did that. The previous owner of his home had horses on his acre and a half lot. At the time it was legal. The regulation changed to needing over 2 acres for large livestock. He ended up selling his property and moving his horses to a 5-acre plot. Governments can do this.

Is your homestead in a hurricane/tornado/avalanche/flood zone?

The reason for this is self explanatory. Forewarned is forearmed. Take a look at average rain/snow fall for the past couple decades at least. What's the topography like? How much does land clearing and manipulations will you have to do and what will it cost in the future as you grow?

The first five-year plan will mostly be infrastructure? How everything will be placed on your homestead. Establishing paddocks and shelters for livestock. Keep aging in place in mind. Unless you've got tons of money to throw into the property, or you have to prioritize your needs.  With a ten-year, it includes growth, expansion, and income. Expansion is necessary because stagnant growth fails to reach your goal. Each year, once your main infrastructure is accomplished should be one more item towards being more self sufficient and self sustainable. It may be as simple as adding one more vegetable or fruit tree, or raising one more animal on your homestead. Like we are adding a chicken and quail farm to our homestead in 2020 as an extra income stream. We never thought of doing this in the first five-year plan, but we are.

For example on this homestead, we had fiber rabbits and chickens, the beginnings of an organic garden, and a barn/workshop. In the future, we'd add milk goats to our homestead. My first two years here, I focused on infrastructure items like house maintenance (electrical & plumbing), expanding the garden for food production, put in an 1/4 acre orchard, and regraveled the 1/4 mile driveway. The goal was to produce 75% of our vegetables and fruit by the 3rd year. The 4th year goal was 90% of our fruits and vegetables and 50% of the hay and straw needs for the homestead.  We met the 4th year goal in the 2nd year. It happens like that sometimes. In our 4th year plan, we also wanted to two tiny houses on the property and add goats. To be honest, that's not going to happen. Those items have been pushed back to year 6 or7.

These are just a few items to check out before you buy that gorgeous piece of homesteading property you have your eye on. The difference is reaching your goal of a self sufficient lifestyle or being stopped before you even get started. As carefully as you've researched homesteading and learned the skills involved, shouldn't you do the same for your property? Some food for thought.

Y'all have a blessed day!

Cockeyed Jo