What to Look For Rural Property Loans.

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What to Look For Rural Property Loans
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• If you are looking to finance rural and farm
  loans, or rural/residential zoned properties
  which could be used for residence or as a working
  farm, then a rural property loan is what you
  need.
• Before knowing more about loans for rural
  property, let us understand the pros and cons of
  mortgages for rural property loans.

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• What are the Advantages of Buying a Rural Piece
  of Land?
• Significantly Low Prices
• Compared to the very high prices for property in
  urban areas, houses in rural areas cons
  significantly less. The demand for rural property
  is also comparatively low, which makes its price
  show such variation regardless of its size and
  utility. There is also a lack of competition in
  rural areas with regard to the number of buyers
  as opposed to what can be seen in urban areas.
  This feature has encouraged people who live in
  urban areas to purchase from rural areas.
• Whether you decide to purchase a home in a
  regional or rural area, adjacent to a large
  metropolis, or both, you're probably making a big
  financial commitment and maybe starting a drastic
  lifestyle change. Because of this, it's critical
  to understand the benefits and drawbacks of
  purchasing land

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• 2 Extremely High Availability
• You find better opportunities for investment in
  rural areas as there is zero competition for
  buyers. The population density for rural areas is
  comparatively very less in comparison to urban
  areas and this enables us to choose a property of
  our liking from a slew of prime properties in
  position. Acreage near a significant state
  capital might be a luxury purchase with a high
  price tag. However, the price of acreage can be
  reasonably modest if you're willing to seek
  further outside in regional Australia, where land
  values often tend to be lower.

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• 3. High Resale Value
• Investing in rural properties bears fruits in the
  long run. For instance, once there is an upgrade
  in the area there will be more people from all
  over the country trying to relocate and buy
  properties. Once this demand is foreseen, the
  property you once bought at a lower price will
  now give you double the amount you spent. The
  fact that a number of governments are now opening
  up farmlands for housing development and
  industrial reasons may make this opportunity very
  profitable for investors who are thinking about
  purchasing agricultural property in rural areas
  close to the city. While talking about the
  advantages, it is equally important to discuss
  the disadvantages of the same. Blocks of land can
  range in size from "hobby farms" of fewer than 10
  acres to much larger expanses of more than 100
  acres. They all provide a great level of privacy
  because, in comparison to a typical suburban
  block, your neighbours are probably much farther
  away.

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• 4. Fewer Facilities
• Rural areas have fewer facilities and amenities
  compared to urban areas and this might cause
  difficulty for those trying to find a lifestyle
  in rural areas. Recreation areas might even be
  absent in some places, and public services might
  be slow, all the facilities you enjoy in the
  urban area would be toned down to at least 6 in
  the rural areas. There is no escaping the truth
  that having more land frequently entails more
  effort. Living on acreage can require more time
  and money, such as maintaining fencing, keeping
  grass short (to reduce the risk of bushfires),
  controlling weeds, and possibly keeping water
  tanks clean and pumps in working order if your
  property does not have access to town water. This
  is true unless you choose to live on a "bush
  block" with few changes to the natural landscape.

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• 5. Fewer Work Opportunities
• Again for those looking to live in a rural area
  after taking a rural property loan, you will find
  it difficult to find a job that suits your needs.
  A 9-5 desk job would be far from possible in most
  cases. Living on the outskirts of the city might
  even give a better chance of finding the desired
  job but will be accompanied by long hours of
  travel. Water tanks, a lot more fencing and
  gates, and even a tractor or ride-on mower hidden
  away in one or more large sheds are some
  characteristics that are more common on acreage
  properties than in the typical suburban home.
  Additionally, there may be a greater risk of
  bushfires with acreage estates. Your house and
  contents insurance prices may be affected by
  these variables.

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• Investing in rural property has its pros and
  cons, now let's find out about financing for a
  rural property, Rural Property Loans. For rural
  property loans, certain criteria matters for
  banks.
• Most banks will accept your application for rural
  property loans only if your land ranges from
  10-15 hectares while some of them won't have
  issues even if your application is not for
  large-scale commercial farming. This is also the
  same for liveable sheds that are council-approved
  as a Class 1a structure (inhabitable dwelling).
  The only exception is for land over 200 hectares
  where banks can be conservative across the board.
  

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• Why is size such a big issue?
• Banks use the property as security for your
  mortgage and that makes them concerned about the
  saleability, that is, they want to be able to
  easily sell the property if you are unable to
  make regular repayments should you no longer be
  able to make your mortgage repayments.
• Its the reason why they will more readily accept
  a standard residential property on the standard
  block within 100km of a metro location. Theres
  simply a larger market available whereas for some
  rural locations it may take weeks or even months
  to find a buyer.
• And banks arent into speculative investing
  either! The bank is making money from the
  interest you pay on your home loan and wont see
  any potential gain that you may be predicted from
  the purchase.
• They will only look at the property at face value
  or as if they were going to sell it today and not
  ten years from now after some renovation work.

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• The Bank Then Looks For A Distinction Between
  Residential And Commercial Property
• The second thing banks generally consider is what
  you intend to use the property for.
• If youre intending to use the land for farming
  or any other commercial use, youll need to apply
  for an agricultural loan instead which can come
  with much higher interest rates.
• Even if youre simply using it as a lifestyle
  block or a home away from home, its not
  necessarily that simple to qualify for the
  cheaper pricing of a rural home loan. Firstly,
  the bank wants to know youre not relying on
  income generated from farming activities in order
  to afford the loan.

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• The Banks prefer properties with easy access and
  all-weather roads. They dont necessarily have to
  be sealed. Dirt roads may acceptable as long as
  theyre in good condition.
• In conclusion, there are several pros and cons to
  purchasing a rural piece of land. Carefully go
  through each point and create a checklist. If
  your checklist qualifies your requirements and
  your benefit from the pros more than struggle
  from the cons, go ahead and make your purchase.

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• THANK YOU

Presented By, Rural property loans Australia