Vermont State is known to have large tracts of land. However, is owning land in Vermont a good and reliable investment idea? We have the answers.
Should you consider land investing in Vermont? What are the pros and cons of owning land in Vermont? What are the factors you should consider before buying and owning land in Vermont?
The pros of owning land in Vermont include low competition for lands, fewer investment costs, good returns on initial investments, and easy access to utilities. The main cons of owning land in Vermont include the lack of an instant way to generate income, low economy, and seasonal changes.
This article will take an in-depth study of whether owning land in Vermont is a good investment idea and the pros and cons of owning land in Vermont. It will also explore the factors you must consider before buying or owning land in Vermont. So, if you are planning to own land in Vermont but you are wondering whether it is worth it, then this article will guide you on this.
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Table of Contents
Vermont is ranked 49th among the most popular states in the US. According to the 2020 census, it has a population of about 625,000 people from different cultures and races, and the land is approximately 9,216.66 square miles. Vermont has beautiful sceneries of green mountains filled with tall trees covering about 77% of Vermont. The name Vermont originates from the hilly and rough terrain of the place, which means green mountain state.
Vermont borders Quebec to the north, New Hampshire to the east, and New York to the west. In addition, it is the only state in the US that does not border the Atlantic Ocean. Vermont features green mountains separating Lake Champlain and another valley located on the west side of the Connecticut River that explicates the eastern border. Vermont also produces the most significant maple syrup, where the market buys 35% of it. Maple syrup production is crucial to the economy of Vermont.
Pros of owning land in Vermont
Owning land in Vermont is a good investment for those who want to buy land for development, settlement, or real estate projects. The abundance of land in Vermont makes it possible to own a large piece of land without restrictions. Additionally, the local government and authorities give out reasonable freedom and rights in how you can utilize your land without restrictions. Here are the pros and cons of owning land in Vermont:
Land availability and competition
According to the US census bureau, the size of Vermont is approximately 9,216.66 square miles, and the population is about 624,000. The amount of land is abundant such that the natural resource council has set up local zoning laws where a person is allowed to own a minimum of 1 to 2 acres of land. You can hold up to 25 acres of land in Vermont following the use of the tax subsidies plan. Therefore, the competition for land is low since the abundance of land makes it possible to buy a large piece of land or small sections of land in different places around Vermont.
The average cost of land per acre in Vermont ranges from $4,000 to $7,000. In the rural areas where there is no access to roads and the rate of development is low, you can buy an acre of land at $3,000. Buying vacant land will save you money compared to buying developed land. This is because vacant land has little or no maintenance cost while developed land needs fixing and repairs.
Cash returns on initial investment strategies
Everyone has a different reason as to why they want to buy and own land. In Vermont, the local government has provided landowners the right and freedom to utilize their land s as they wish. However, Vermont has few restrictions on using land for energy production. Here are the strategies you can implement on the ground after you have owned it.
Buy and sell strategy
This method is commonly known as land flipping, where you can buy land in Vermont at a low cost and then sell it at a price higher than the amount you used to purchase the land. It will make you a profit. Additionally, you can buy a large piece of land in Vermont, partition it into smaller portions, and then sell each separately. This method will maximize your profits compared to selling the ground as a whole parcel.
Buying and holding strategy
You can buy and own land in Vermont and then hold it without activities until the given area develops. This development will increase the value of the ground making the price rise. Before buying land in Vermont, ensure that you have evaluated its economic achievability. Then check the price offer and assess if it is reasonable, check the zoning rules and regulations of the area, and later on, after you have stayed with the land for a while, market and then sell it.
Buying and mining strategy
Vermont is known to have around 266 mining areas. It is known to mine different resources such as gold, lead, copper, and iron. You can buy land and consider utilizing it in mining these resources. Before you start mining, you must confirm that there are minerals in the land parcel. You can do this by hiring a land professional who knows how to check for minerals present.
Additionally, confirming with the land seller would be best if you were sure you have the right to utilize the mineral resources. If you have the right to use the mineral, get a permit from the local government, and you can now use the land by mining. Alternatively, the best way to know if you have the right to use the minerals is to contact land gates for assistance.
You can decide to buy land in Vermont and build your home for settlement. You have the right and freedom to develop and design the kind of house you wish without restrictions from the state. When you consider buying a home in Vermont, it may not give you the satisfaction you would have wanted when you compare it with constructing your own home. For example, the house's rooms may not be enough and the house's color may not appeal to you.
Crop farming and livestock keeping strategy
The land found in Vermont is hilly and has rough terrains; therefore, it is suitable for livestock farming. The name Vermont originates from the kind of terrain, which means productive mountain state. You can consider raising livestock such as llamas, sheep, cows, and chickens. Vermont is also suitable for farming crops such as corn, maple syrups, and apples, which can profit if you consider crops and livestock keeping.
The characteristic value of buying land in Vermont is that it order not degenerate or decay. It retains its physical attributes. With the increase in development, most of the land in Vermont appreciates. According to research done by Neighborhood Scout, the total appreciation rate of land in Vermont from 2000 to 2021 has increased by 151.87%. Therefore, buying land in Vermont guarantees appreciation; thus, when you sell the ground, you get more profits.
Cons of owning land in Vermont
Even though owning land in Vermont provides benefits and opportunities to the land owners, developers and investors, there are some limitations you need to consider when buying land in Vermont. Here are the cons of owning land in Vermont.
When buying land in Vermont, do not expect an instant income generation. It is because it takes time for you to look for ways you can utilize your land to gain profits. At the same time, as the ground remains inactive, you will have to cater for costs such as property taxes and cost of maintenance. Since the land is not making any profit, you need to find ways to pay these costs here. You can end up selling some portion of the land. Additionally, getting the right client who can buy or rent your land is not easy in Vermont due to the abundance of land and low population. Therefore, if you do not have enough money to cater for cost other than buying land, then owning land in Vermont is not suitable for you at the moment.
Although most of the places in Vermont are thriving economically, some areas, such as Rutland, has a low economic status. Therefore, it is not wise to own land in such a place because the value of the land is likely to depreciate from time to time. If you want to buy land and sell it later on for a profit, you may end up making a loss.
For those who would love to buy land in Vermont for settlement and don't love to be in a chilly place, Vermont is not a suitable place for you to stay. During winter, there will be a lot of snow, which can lead to low temperatures that may be difficult to control. It will add extra costs because you need to buy heavy clothes and warmers to help maintain the temperature.
Additionally, during heavy rains, mud can accumulate almost. Access to the land can be challenging because vehicles may get stuck. In Vermont, most houses have a mud room where you get to clean and keep your shoes during a muddy season to avoid making the main house dirty. Therefore, when building your home, do not forget to construct a mud room, which will cost you extra cash.
Factors to consider before owning land In Vermont
Generally, buying and owning land in Vermont is a good and reliable investment opportunity. However, before you buy land in Vermont, there are various factors you need to consider to get the benefits of owning the land. Below are some factors to consider before purchasing and owning land in Vermont:
Before buying land in Vermont, you should determine its zoning area and the rules and regulations to follow. Zoning is a process that influences how a given piece of land is supposed to be utilized. For instance, there are some lands you can use for commercial purposes only, whereas there are other lands you can only use for residential purposes. However, you have the option of appealing for a re-zoning process which is expensive and uses a considerable quantity of resources.
The history of the land
It is good to inspect the land by assessing its history. The reason for knowing the record is that with the information, you will see the potential of the land and come up with suitable ways to utilize the land parcel, thereby making profits. The land history can also help you confirm that your ownership is valid. In addition, the recent owner might have had unpaid debts, and when they sell the land to you, it becomes your responsibility to pay those debts.
The rights of the property
You can consider checking the rights and restrictions of your land to avoid getting charged by the authorities involved. For instance, if your land parcel is near a water body, you need to confirm that you have the right to use it in ways such as fishing, swimming, and water use for domestic purposes.
If you want to buy land for settlement, always ensure that it has access to the sewer system of the municipal council. If that is not the case, the land needs to have an onsite sewer system. This type of sewer system will depend on its cost of construction. You also need to ensure that the ground surface of the land can handle the septic system to avoid destruction of the land. A licensed engineer should design the septic plan to create a long-lasting sewer system. You can use a pre-treatment sewer system if the ground surface cannot handle a conventional sewer system.
Wrapping it Up
Investing in and owning land in Vermont is an ideal investment. All you need to do is to practice due diligence and be careful in planning. However, before you buy and own land in Vermont, you must ensure that you have followed the factors we have outlined and discussed to ensure that the land parcel you buy will suit your need.
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