Owning Land In California: Pros & Cons | askBAMLand

Owning land in California seems like a dream. It’s a wonderful place with plenty of opportunities. But is it all that it’s shown to be?

California is one of the best places to live and visit. It has everything that people could want in a place. With plenty of tourist attractions, excellent weather, and various landscapes, the state offers everything that would make you want to live there. But if you’re planning to purchase land in California, you’ll come across various benefits and drawbacks.

The land in California is fertile, and the weather is extraordinarily nice all year round, making it the best place to build a home. However, the state has set water usage restrictions, and wildfires break out often. These are some reasons that might make you reconsider buying land in this state.

Real estate investors have their eyes on lands in California for all the right reasons. While you may assume that owning lands in different states will get you tremendous returns, that’s not always the case. The value of land doesn’t always rise as you would want in all states but owning land in California is definitely a winning proposition. If you play your cards right, no one can stop you from reaping good fruit. However, owning land in California isn’t cheap. Not to mention the ongoing threat of wildfires in the state.

As experts in the real estate industry, we know our way around land in California, as well as all you need to know before you decide to buy some land here.

Table of Contents

Determining the Type of Land to Buy in California

Not all lands that are up for sale are the same. When buying land in California, you’ll come across various land types. The type of land you buy should be suitable for the purpose you’ve got in mind. Whether you’re buying land with an intention to sell it for a profit or buying it for farming, or building a home, it’s extremely crucial to evaluate that you’re buying the right type of California land.

Farmland

California is known for having the most fertile agricultural lands, but that doesn’t mean that all available land is suitable for farming. If you wish to buy land in California for farming, you should look for farmland options.

This is land developed especially for farming with all the basic and necessary structures and utilities you’ll need. You also need to consider what type of animals you’re planning to keep at your farm and what scale you plan to farm on.

If you buy plain land for farming, you’ll have to prepare it for farming from scratch, which may end up costing much more than what prepared farmland would cost you.

Ranch

Although the land for farms and ranches is quite similar, they’re not all the same. The farmland soil has to be more fertile as crops are grown there. On the other hand, a ranch could do with less fertile soil as the primary purpose of a ranch is to deal with livestock.

Farmland is more expensive than land for ranches, and without adequate knowledge, you may end up buying more expensive farmland when you don’t really need it.

Acreage

Acreage is the land that is just an empty lot with no utilities. To bring this land into use, you’ll have to first invest in installing water and sewage lines and arrange for other utilities. You can find acreage at quite reasonable prices in California.

Commercial

If you’re planning to utilize the land for commercial purposes, you’ll have to buy commercial land. You can’t use a residential or farming lot for commercial purposes. These lots are developed in commercial zones and are very expensive.

Recreational

Just like you can’t use any land for commercial purposes, you can’t use it for recreational purposes either. If you want to build a park or resort, you’ll have to buy recreational land.

Pros of Owning Land in California

When you consider buying land, California is a great state to own land in, and we say so for all the right reasons. Let’s have a look at some of the most prominent reasons why you should consider owning land in California.

Best Land for Farming

California is an agricultural state that produces over a dozen products like vegetables, grapes, almonds, and pistachios. It’s the largest agricultural producer as well as exporter of agricultural commodities in the United States, which is one of the biggest reasons why you should own land in this state.

Investing in farmland could ensure great profits for you in the long run. With the ever-increasing population, the demand for food is bound to increase by several folds by 2050, and if you own land in California that you use for farming, you’ve got gold on your hands (metaphorically)!

Variety of Landscapes

Many people dream of building their homes in a scenic spot. California offers one of the most diverse landscapes, from deserts to mountains to vineyards to seaside.

You’ll find land in every possible landscape that’ll allow you to build your dream house at a dream location.

Pleasant Weather

Another reason to own land in California is the pleasant weather for the most part of the year. The state experiences long summers with lots of sunshine. Owning land in California means you’ll have numerous options on how you can develop it.

You can build a vacation house, a resort, a recreational spot, or use the land for farming. The winters are mild, and summers are long. You don’t have to worry about your land freezing in extremely cold temperatures or getting flooded with excessive rainfall.

You can rest assured that the land you own in California is a solid asset that you can utilize any way you like and which will certainly be profitable for you.

Land Appreciation

The best part about owning land in California is whether or not you decide to develop or build on the land, you’re in for great profits, especially if you’ve invested in farmland. The value of land in California is on the rise.

The land in this Golden State is extremely fertile, and considering how fast the population is growing and the demand for food is increasing, the value of California land is definitely up for surge, and it’ll only continue to rise in the future as well.

Even if you decide not to develop the land you own, you can sell it off after holding it for a few years and earn massive profits!

Low Property Taxes

Another reason that lures people to invest in land in California is the lower than average property tax rate. The state charges a property tax of 0.73%, which is much lower than the national average of 1.07%.

Cons of Owning Land in California

While there are various reasons why you should own land in California, there are some drawbacks as well. It’s best to familiarize yourself with the other side of the coin so that you can make a more informed decision.

Expensive Utilities

California is one of the most expensive states to live in. If you’re buying land intending to build a house, you should know that everything is quite expensive here.

You’ll have to pay more for everything, including the groceries and utilities. The overall cost of living in California is one of the highest in the U.S.

Risk of Wildfires

The risk of wildfires is always lingering in California. Owning land in California comes with numerous benefits, but you’ll also get a fair share of stress. California is a very challenging place for landowners because you never know when the worst can happen.

Restrictions on Water Usage

One of the most critical factors that you must consider when buying land in California is the restrictions on water usage. The demand for water is increasing rapidly, and landowners have to utilize the limited resources the best they can.

If you own land in California, you’ll have to come up with innovative ways to get the most work done while utilizing as few resources as you possibly can.

About THE AUTHOR

Brittany Melling

Brittany Melling

We loved family’s outdoor adventures so much we started a land business just to help others buy their own land. We’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans five western states. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

Read More About Brittany Melling