Real Estate

Buying vacant rural land

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  • Oct 5th, 2016 1:40 pm
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Deal Addict
Apr 22, 2014
3097 posts
474 upvotes
Oshawa, ON

Buying vacant rural land

Is there a way to see how vacant rural land prices have progressed long term?
I'm looking anywhere from Haliburton to Madoc to Maynooth to Barry's Bay, though SE of Bancroft, north of Bon Echo is the sweet spot. 50+acres only with road access.
I see these lots going from 60k to 200k these days.
How do you get your due diligence done, like figuring out if it could be approved for septic/well/building, entrance improvements, etc?
HST on the purchase is brutal. Say on 200k of land, it'd be worthwhile to just put up a shanty to avoid paying the tax.
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5 replies
Deal Addict
User avatar
Mar 23, 2011
2207 posts
1398 upvotes
Etobicoke
Go talk to an agent (s) in those areas and ask them everything. Pick someone that has been around for a while and can tell you how land has been selling for the last 10-20 years.
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Deal Expert
Aug 2, 2001
18945 posts
10527 upvotes
It honestly sounds like you are looking to do land-banking, except all on your own. What I would do is look at the companies that do land banking and you will learn more about the entire process. One of the big stumbling blocks I think an individual would face is in getting their development plan made up and approved by the municipality. This would leave them stuck just selling the land to a developer, so the profit would not be nearly as big as you think.

Without a development plan approved by the municipality your land has much less value, whoever holds it is taking the risk that the development may not be approved as intended. Either way, read up on land banking and see what the companies say and that will give you an idea of the entire process.
Deal Addict
Apr 22, 2014
3097 posts
474 upvotes
Oshawa, ON
TrevorK wrote: It honestly sounds like you are looking to do land-banking, except all on your own. What I would do is look at the companies that do land banking and you will learn more about the entire process. One of the big stumbling blocks I think an individual would face is in getting their development plan made up and approved by the municipality. This would leave them stuck just selling the land to a developer, so the profit would not be nearly as big as you think.

Without a development plan approved by the municipality your land has much less value, whoever holds it is taking the risk that the development may not be approved as intended. Either way, read up on land banking and see what the companies say and that will give you an idea of the entire process.
It's actually for posterity. Development would be limited to 4 season cabin(s) for my family. I don't want to buy existing because I want the building to my standards/wants/needs etc. There's no intention of selling unless under duress. I've emailed some listing agents but they are full of BS when it comes to potential land use. They'll say anything to sell it. I suspect with properties that appear to be well priced they also come with the previous owners bag of failed dreams as far as cottages go.
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Deal Addict
Aug 30, 2011
3537 posts
1279 upvotes
Ottawa
eldeejay wrote: It's actually for posterity. Development would be limited to 4 season cabin(s) for my family. I don't want to buy existing because I want the building to my standards/wants/needs etc. There's no intention of selling unless under duress. I've emailed some listing agents but they are full of BS when it comes to potential land use. They'll say anything to sell it. I suspect with properties that appear to be well priced they also come with the previous owners bag of failed dreams as far as cottages go.
You're best to contact the municipality to find out land use. As long as you don't plan to sever, it is simpler (because not all areas within each municipality are zoned for severing). We have vacant land with a cabin that we had built, and we severed two parcels off it -- there were many requirements financial and otherwise for us, and for the buyers. So... find out from the source, the township/municipal office.
Deal Expert
Aug 2, 2001
18945 posts
10527 upvotes
eldeejay wrote:
TrevorK wrote: It honestly sounds like you are looking to do land-banking, except all on your own. What I would do is look at the companies that do land banking and you will learn more about the entire process. One of the big stumbling blocks I think an individual would face is in getting their development plan made up and approved by the municipality. This would leave them stuck just selling the land to a developer, so the profit would not be nearly as big as you think.

Without a development plan approved by the municipality your land has much less value, whoever holds it is taking the risk that the development may not be approved as intended. Either way, read up on land banking and see what the companies say and that will give you an idea of the entire process.
It's actually for posterity. Development would be limited to 4 season cabin(s) for my family. I don't want to buy existing because I want the building to my standards/wants/needs etc. There's no intention of selling unless under duress. I've emailed some listing agents but they are full of BS when it comes to potential land use. They'll say anything to sell it. I suspect with properties that appear to be well priced they also come with the previous owners bag of failed dreams as far as cottages go.
My apologies - I just assumed this was a for-profit thing!

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