Review of house with land for sale::Land Contract Homes?
Review of house with land for sale::Land Contract Homes?
When looking to purchase the ideal farm, there are basic things to consider; the size, the location, the purpose, the amenities, zoning. You will need a solid plan and you will need to do your homework. Buying a home is an investment, the largest investment most people make. Buying farm property that will not only house your family but also animals, in this case - horses, is an even greater undertaking. How many horses do you plan to have on your farm? How many do you own already? What will be the purpose of your horse farm? Will you be buying and selling horses? Will you be boarding horses? Will you be training "outside" horses in addition to your own? Will this farm be solely for you and your family's enjoyment? It's common among horse people to think, small house, large barn. We are outside a great amount of our time. But if you have a large family or extended family, you'll want that house to be big enough to accommodate overnight guests (very handy during haying season), holidays, summer vacations, grandkids. You'll want more than one bathroom. You'll want a mud room or at least an area at the back door for smelly boots, muddy clothes and wet gloves. You'll want an eat-in kitchen for "chowing down" time between chores. With those considerations out of the way, it's time to assess the barn. How many stalls does the barn have? Are they larger than 10' x 10'; very important if you have large horses? Three 10' x 10' stalls can be turned into two 10' x 15's fairly easy, as long as the stall beam is not supporting the roof or loft. A 10' by 10' stall is fine for small horses, particularly if they get outside daily and are exercised regularly. Is the aisle way of the barn wide enough for crossties for grooming, shoeing, tacking, etc.? Is there ample storage area for hay? Is there a feed room, a tack room? Are there any issues with the well? Is there room for equipment storage? When Marvin and Cindy Joy Talbot moved from their Ohio farm to Arkansas, they shopped around for months with very specific requirements. They wanted at least 30 acres, a sturdy barn with room for at least six horses, and a move-in condition house. They looked at farms across four states, and eventually narrowed their choices to the southern part of Arkansas. Being Thoroughbred horse trainers, they wanted to be near OaklawnPark in Hot Springs for shipping in to race, but far enough away to be off the beaten path. Talbot Ranch is the home of "Ginger's Threat", the great grandson of Secretariat. "Animals and traffic don't mix," Marvin says. "We wanted an affordable place that's secluded and safe, a place that offered many opportunities for the land. Tree farming is big business down here. As we extend our pastures over the years, it's good to know we have something tangible like that as an income option to fall back on. Whatever we do, it will be in consideration of the animals. Talbot Ranch is also home to wild turkey and deer. We like that." When you consider all that is involved in finding the perfect farm for you, your family, and your horses, it pays to take your time. It is never easy to relocate, let alone if you have animals to move with you. Cindy Joy says, "We wanted a large piece of land. We found one with forty acres. Not having to worry if a horse gets loose that he's going to end up out on the road is a huge relief. We have a mile-long driveway and the nearest road is through acres and acres of thick forest brush. There's no traffic. It's just us and the mailman." Price, unless you are filthy rich, will always be one of the main considerations when purchasing a farm. Many a "pricey" farm has gone on the market of late. Feed prices have gone up; hay is at an all-time high. Farming on any level comes at a price. Taxes are also a huge consideration. Don't buy too big, don't buy too small. When budgeting the cost of buying a farm, it's best to figure affordability of the barn aspect itself without having to rely on additional "horse" sources of income to pay the mortgage. You can not count on boarders staying with you forever. Boarding is a fickle business. You can not count on a student or horse owner keeping you as their trainer indefinitely. The average equestrian has at least two to three trainers throughout their riding careers. It will be important to know your pasture limitations. A good rule of thumb is three acres per horse. Consider the climate in relation to pasture. Is the area prone to floods, standing water, drought, blight? You'll also want to make sure your prospective farm does not have zoning limitations. Perhaps you have found the perfect farm house, but the barn won't do. There is always the possibility of building a barn, but second mortgages and equity loans to finance the construction is not necessarily the best decision. Not unless, again, you do not need the supposed horse income to pay for the additional loan. Figure the construction costs into the price of your first mortgage. The value of the house, or the barn and grounds, should be enough to finance the other if you are playing it safe. "Many experts agree that PITI, the total amount you pay toward your mortgage, should not exceed 28 percent of your gross income. For example, if your total household income is $80,000, your monthly income is $6,667. At 28 percent, you can afford to spend $1,867 on your mortgage per month." (1) You will also need to consider adequate insurance. It is best to err on the high side. As the home and farm owner, you'll want to make sure you are sufficiently covered for any accident or catastrophic situation. There is a great deal to consider when looking to purchase the ideal farm, but well worth the time and effort to plan accordingly. You want to enjoy your farm. You want to enjoy your horses. Having control of your destiny, to a point, will help you sleep better at night. You will be saving money by having your horses at home. You will have control over their care and wellbeing. You will be enjoying life on the farm. www.allbusiness.com |
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