Buying an acreage!


Big City Calgary living isn’t for everyone, some people long to look up at stars instead of city lights. Moving out of a metropolis to areas like Springbank, Bearspaw or Priddis might be next on your bucket list. If so, here are three things we need to look at:

  1. How many acres are we talking? 5-10 acres is usually easier for a buyer because the mortgage generally qualifies parallel to a regular city home. The minimum down payment will normally be 5% of the purchase price if the property is under $1 Million.  Over a million and a minimum down payment will be 20%. Remember that an appraisal will be required in most instances, and a lender will generally only give value for up to 10 acres, the house and garage. "Outbuildings" such as shops, barns, and Quonsets are almost always not included in the value of an appraisal.
  2. Zoning of the property must comply if we are treating it as a regular residential mortgage vs. agricultural land. "Country Residential" is commonly the zoning for these types of properties.  Rural is a larger acreage frequently 40, 80, or 160 acres (160 acres =1/4 section). Agricultural land is for farming use and cannot be financed by normal mortgage companies or banks.
  3. Septic tanks and wells are typically found on acreages, which means a water potability test must be completed and a septic certificate is required from the municipality to confirm best practice. The lender needs to know that the water is safe. (We can help you with this.)
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Keep in mind that income generated from an acreage will not be included to help you qualify for the mortgage.  In fact, if a great deal of income is currently being generated by the current owner from such things as mineral rights, or leasing the fields to a farmer, this may raise a flag to lenders who may consider this more like a farm loan or business loan instead which is a completely different process.


We hope this was informative, please contact me anytime if you have any questions.

Direct: 403.850.0669


*Stewart J Lowe is a Guild Member of The Institute of Luxury Home Marketing. This is based on proven sales data and client service in the rural and residential areas around Calgary.


Experience Counts

stewartjlowe@gmail.com

Alberta Rural Land For Sale

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Data was last updated January 23, 2021 at 02:05 AM (UTC)
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.