Should you consider owning land in Missouri? Is it a strategic and wise investment? We are going to give you comprehensive answers on this.
Should you consider purchasing land in Missouri? Is it a worthwhile investment? What are the pros and cons of owning land in Missouri? What are the factors to consider when you buy land in Missouri?
The pros of owning land in Missouri are:
- The low cost and availability of land
- State of infrastructure
- The status of the economy
- Returns of land investments
The cons of owning land in Missouri are:
- Environmental changes
- A high crime rate
- Increased state and local taxes
This article will examine whether one should consider owning land in Missouri and the pros and cons. It will also examine the factors one must consider before buying land in Missouri. Therefore, if you are interested in owning land in Missouri but are unsure if it is a wise investment idea, then this article will guide you on this.
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Table of Contents
Missouri consists of people from different races, such as whites, African Americans, Asians, Native Americans, and native Hawaiians. The total population is 6,184,843, with a land measure of about 69,704 square miles. Each square mile has an average of about 87 people living or owning land in Missouri. Missouri consists of four large cities: Kansas City, Springfield, Columbia, and St. Louis. The population density is higher in urban areas than in rural areas. The large metropolitan cities have an average of 1 to 5000 people in each square mile of land, while in the rural areas, about one-third of the total population dwell in these areas.
Missouri features landmarks such as hills found in the northern part that are the remains of the glaciation process. There are various rivers, such as Missouri, Mississippi, and Meramec Rivers. The southern region has a mountainous terrain due to the plateau called Ozark. The climate comprises warm and humid summers and cold winters, with temperatures ranging from -5° C in January to 32.5 °C in July. During spring, the weather is not stable due to the common occurrence of tornadoes. Overall, Missouri is a peaceful state where people of every racial and cultural background are allowed to live and own land as long they have the documents required by the state.
The Pros of Owning Land in Missouri
Owning land in Missouri gives one the direct ownership of the land where one deals with the land owner directly for the land purchase. With the license, one has the right and freedom to utilize the land in whatever development as long as it complies with the zoning laws of land use in the given area. Additionally, buying land in Missouri helps to save on costs such as maintenance compared to purchasing an already constructed home that requires maintenance now and then. Besides, land destruction cases are few when purchasing land rather than an already made property. The following are some of the pros of owning land in Missouri:
Low Cost and Land Availability
According to a survey by the University of Missouri, the cost of buying land in the rural areas can be classified into Non-irrigated land, Irrigated land, and Pastureland. The cost of purchasing Non-irrigated land, Irrigated land, and Pasture land is $6300, $7130, and $3800, respectively. In urban areas, the cost varies depending on the development rate, ranging from $ 8500 to $30,000.
When comparing the cost of owning land in Missouri and other states in the US, the cost of buying land is cheaper and more affordable. Missouri is ranked 12th to have the most affordable lands in the US. In terms of land availability, Missouri has over 17 million acres of land while the population is around 7 million. Therefore, there is an abundance of land to purchase.
State of Infrastructure
Missouri is known to have one of the largest road networks that are estimated to be 48,270 kilometers. It plays a vital role in the economy of Missouri by ensuring that the lands and other properties have easy access to it to improve the standard of their life and provide efficiency in traveling.
The rail system ensures efficient movement of people and other products within and outside the state. Even though the railway needs some improvements in maintenance and repair, it is still a reliable infrastructure. The state is improving the rail system by charging the residents a low amount of money when they use it as a mode of transport.
The aviation industry has a steady growth where Missouri has got up to 500 aviation equipment in Kansas City and St. Louis International Airports. Therefore, access to panes and other aviation aircraft is easy. Additionally, around 5529 dams in Missouri help provide water for recreational, agricultural, domestic, and commercial use.
Missouri has steady economic growth where according to the Economic Research and Information Center, there will be an increase of up to 100,000 employment opportunities from 2021 to 2023 due to the industrial, agricultural, commercial, and recreational developments. Therefore, buying land in Missouri ensures appreciation due to the increase in growth.
Returns on Land Investment
Owning land in Missouri is a flexible investment because, with the land, one has various ways they can put the land into use depending on the taste and preference. Some of the development ideas include the following:
Agriculture and Forestry
Investing in agriculture in Missouri is one of the best ways to generate earnings. Agriculture contributes around $88 billion to the state's economy every year. Currently, there are around 100,000 farms where the average land owned by each farmer is 250 acres. The fertile soils and a good terrain make the place suitable for farming commodities such as cotton, rice, and soybean. The favorable terrain also enables one to raise livestock such as cows, goats, sheep, turkeys, and rabbits, whereby one can sell their products as a source of income.
According to the world atlas, local timber production contributes $10 billion, while timber produced for export generates $ 170 million for the state's economy. If one buys land in the forest, one can obtain a permit from the state authority and start timber production. This activity is efficient if the land has many trees that can be cut and sold for an extended period. Additionally, planting more trees helps prevent the shortage of trees one wants to sell.
One has the option to do mining in Missouri if the land contains mineral resources and whether one has the right to utilize these natural resources for their benefit. One needs to confirm if they have the right to use the natural resources by asking the land seller or contacting the land gate organization for assistance. One is also required to get a permit from the mining authority and hire a land professional who needs to check the type and amount of mineral resource present in the land.
Land for Settlement
One can consider buying land and building a home for settlement in Missouri. Purchase land for settlement in Missouri means one can develop and design their home according to their taste and preference. There are no limits on how one can customize their home compared to buying an already made house. Additionally, building a home is cheaper and more affordable than buying an already made property.
Hunting and Fishing
Tourists and other residents love to go hunting in game parks and fishing in rivers and lakes for recreational purposes. Therefore, if the location of the land is near a waterbody or a game park, one can rent it out to tourists and local citizens who would love to spend a night in their RVs or create camping sites where they can pay for the land plus the camping facilities.
The Cons of Owning Land in Missouri
Having discussed some pros of owning land in Missouri, one can decide whether owning land in that state is a wise investment. However, there are some disadvantages to owning land in Missouri. They include:
High State and Local Tax
Missouri requires a lot of funds for development through payment of taxes, and therefore when one buys land in Missouri, the cost of property and sales tax is high compared to the other states in the US. On average, a property tax of 4% is charged from the land by the state authority, which is required to help fund the following sectors; 3 % of the tax is general revenue, 0.13% of the tax for conservation, 0.13% of the tax for education and the remaining tax for game parks and soil conservation.
Additionally, if one generates an income of about$40,000 from the land every month, there is a personal exemption of $8000 and a tax deduction of $6300, which is high compared to other states in the US. Therefore, if one considers owning land in Missouri for settlement, check the property tax obligations to see whether it is affordable.
During the spring season, tornadoes are likely to occur in Missouri. Therefore, if one owns land in the region prone to tornadoes, it can destroy the land parcel, making it unsuitable for development such as settlement and building of commercial properties. Additionally, when one considers buying and selling the land for a profit, it becomes impossible for no client to want to purchase land in an area prone to tornadoes.
High Crime Rates
There is a high crime rate in Missouri, and if one considers buying land and settling In Missouri, it may not be a suitable place. There are cases of land destruction and property vandalism, especially in remote areas with no security access. The best way to reduce crime is to buy land in a developed area with security access. Even though it cannot guarantee complete security, one is on the side of being attacked and having their land or property vandalized.
Factors to Consider When Owning Land in Missouri
Having gone through the pros and cons of owning land in Missouri, one can weigh them and decide whether it is a wise investment. However, before buying the land, one needs to consider factors to guide them on the best way to purchase land that will meet their needs. The following are some of the elements:
Water Source and Access to other Utilities
If the land is located or connected to a water body such as a river, one should check the rules and restrictions for using the water and other activities such as swimming and fishing. The reason for doing this is to confirm if one has the right to use the water or if the water source is restricted because it may be hazardous for consumption due to pollution. Additionally, one needs to check if there is access to other essential Utilities such as roads and electricity to avoid using extra cash to provide alternative ways of replacing the missing utilities.
Before buying land in Missouri, one needs to consider looking for a location that is suitable for the kind of development they want to do. For instance, when one wants to build commercial properties, they should consider buying land near town centers or in a place with a high population. Additionally, determining the location helps one quickly determine the distance between the land and access to utilities and infrastructure.
Historical Background of the Land
Before purchasing land in Missouri, consider researching for the historical background to check if it is fit for the development that one has and to ensure that the land ownership is valid. Additionally, knowing the land's history can help one check if there are natural resources in the land and if they have the right to utilize them.
Wrapping it Up
Purchasing land in Missouri is a wise investment. Using various development tactics to take advantage of the availability of land and its affordable cost can help one generate more income. However, the high crime rate and hefty property and sales taxes can be a considerable obstacle when buying land in Missouri. Before buying land in Missouri, follow the processes we have discussed.
About THE AUTHOR
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