Investing In Rural Property In Montana

The demand for rural property for sale in Montana has never been higher. In the Bozeman area, demand for property outside city limits is very strong.

According to the 2017 US Census there are 60 million people that live in rural areas in the United States. That is roughly 1 in 5 Americans.

The desire for privacy, open views, wildlife, love of the land and a simpler lifestyle are Top Reasons To Buy Rural Homes And Properties in Montana.

We are frequently asked if it is better to invest in rural properties instead of purchasing property in a city?

Advantages of Investing in Rural Properties

Usually the further you get away from the amenities of a big city the lower the price of real estate becomes. For example property that is located 45 minutes from downtown Bozeman is typically lower priced than property that is located 15 minutes away. As cities like Bozeman continue to grow, we have seen property values outside of Bozeman increase in price, and the distance people are willing to be away from downtown Bozeman increase.

Over the last 10 years rural property in Southwest Montana has been a good investment.

Properties in rural areas are not subject to city taxes, and do not have to pay the city for water and sewer services.

One of the many reasons buyers are searching for rural proprties is a sense of privacy. You don’t need hundreds of acres to have a private setting. We have sold many properties on 1 or 2 acres that offer excellent privacy.

Rural properties have room to let pets run, graze animals, and raise a large garden. Rural properties allow owners to live in nature, which has a very positive effect on health. Pollution levels are lower due to fewer vehicles and less industry.

It is safer, but as the larger cities grow out towards our country towns, you still should take some precautions.

Disadvantages of Investing in Rural Properties

We work with a lot of buyers looking for rural property. Problems arise when the property is more expensive than expected, when a buyer underestimates the costs of building, upkeep and the hard work it is to own a country property. Montana is no different from any other rural area of the country in this aspect of owning property.

Many buyers start off wanting 40+ acres but do not have a solid understanding of how much property that is. They get out on property and they are shocked to see how big it is, and quickly decide that 20 acres, 5 acres, or even 2 acres gives them the privacy and natural setting they are after without the costs and work associated with maintaining a larger property.

Properties in rural areas have their own well for water, and have their own septic system. This means that the property owner does not need to pay a city for those services, but does have the costs of maintaining their private well and septic system.

Rural properties can have some additional maintenance costs like weed control and costs associated with plowing roads and lanes in winter. You may have to haul your trash to a collection point.

Additionally, if you need to travel to the city on a regular basis fuel costs will be higher, and you will spend more time commuting. Buyers need to consider how often they need to travel to schools, hospitals, grocery stores, hardware stores, etc.

If you need to rent your rural home at some point in the future it is usually more difficult to find a renter.

If you are planning on building a home, you need to first get accurate estimates of what that will cost. It may cost more to bring electricity to the building location that what you paid to purchase the property.

These advantages and disadvantages provide some background about what it is like to own a rural property. It is a brief introduction. We encourage you to contact one of our Real Estate Agents to discuss your plans to own a property in the rural areas of Montana.

Category : Ranch Articles