Things to consider when thinking of purchasing Mountain Property in Colorado

Many people contact us here at Adobe Gold Properties about buying Property in Colorado and for many it is their first time considering a vacant land purchase. We find that we can really help people by focusing first and foremost on the basic things that they will need to know so that we can make this a fun and exciting process.

First ask yourself "What price range of property can I afford"? This should be one of the very first considerations if not the first. By determining a comfort level in a price range you will establish exactly where you can start looking. For many this is not a concern as your financing may be in order so please bear with me as go through this first step.

There is really no sense falling in love with a $100,000 property if you can only comfortably afford a $75,000 or $50,000 property. I always say that a blessing becomes a burden really fast when you stretch too far. So you have to be comfortable with the monthly payments and purchase price. So if you establish this in the very beginning it allows you to focus on that perfect property in your comfort zone. Please don't take offense to this, you would be surprised at how many people come looking at Mountain Property without knowing what their money limits are, and we are just trying to help those that might not have considered this option.

So let's discuss first about financing vacant land in Colorado.

Financing is the most important first step as well as considering future Potential Use of the property.

In this email we will discuss Down Payments, Monthly Payments and Property Uses.

1. Down Payment: This may or may not be a concern but its usually a good place to start. How much do you have saved that you can comfortably put down on a property? Financing is different for vacant land than it is for a home since usually only local banks will finance vacant land and since they can't sell these on the open market they want more down and a shorter term.

The down payment required is usually from 30-35% of the purchase price. Sometimes owners or developers will finance their land for less down and offer friendly terms so let us know is this might work best for you. The interest rates for vacant land are usually higher and may run anywhere from 7-12%. The term is usually shorter too, ranging from 5-7 and up to 10-15 years, depending on who is financing it. We can assist you in finding the best financing options just let us know more about what works best for you.

Here is something to consider if you have the equity in your home you might consider borrowing against it. Many people refinance their home and get better terms and interest rates when it is for your home. And you may even be able to write off the interest on your income taxes, which is not possible to do with a vacant land loan in most cases, so check with your accountant on this. Its a very popular way to purchase land and then you will own the land outright.

2. Monthly Payment: How much can you afford to comfortably spend on a monthly payment? That blessing is to find that perfect mountain property but the burden would be not being able to enjoy it if are so strapped that you can't come and enjoy it. I have always felt that it is worth stretching for something that you believe worth while but believe me when you get back home and have to work extra jobs to afford the property it gets old really quick. So be realistic about your goals, we want you to be comfortable in your new purchase. There are many monthly payment calculators on the internet that can help you figure this out or just call us and let us help you. We can help you with some ideas on creative financing options and terms to make your dream a reality! So do give us a call and let us know more about what your personal situation is and we will do what we can to help.

3. Use of Property: This is a very very important consideration and will determine right up front what zoning you should consider looking for. What is your major use of the property going to be and will you be considering a home business? Most 35 acre properties have some type of protective covenants that restrict commercial businesses but allow a home based business.

So if you are considering something like a Bed and Breakfast or business that will need signage that would increase the traffic onto the ranch then let us know right up front so that we can find you a property without these restrictions. Most ranches have what we call protective covenants that aren't very restrictive as compared to Condo or Homeowner Associations. But some could be restrictive to what your planned use for the property is so think about this up front and it will help you to focus your search on just the right property.

We hope that this helps you get started in your search for that perfect mountain property. If you give us some guidelines to follow, we can help you find what you are looking for or maybe point you in the right direction. We know this area, the local ranches and the market conditions.

Let us put our years of experience to work for you. Call or email us at any time.  Use our personal toll free line 1-866-309-9919 to call us but do follow up with an email. Best time to catch us is in the morning but please try anytime, you just never know what our schedule will be.

Thanks again and we look forward to helping you in your search for Colorado Mountain Property!

Best Regards,

Charlie and Barbara
Adobe Gold Properties