Cabins in the 'sticks' are reasonable!

I have a client that has been looking at cabins in a few remote locations. I am not talking about the moon or anything, but Goldendale, the Coast, and Packwood are among the locales considered. I am genuinely impressed with what one can find in a nice clean cabin on some land even 1/2 acre to 5 acres. I was looking in the $150-175k range and had no problem finding scores of properties meeting at least part of my client's criteria.

What a deal, for the price of a used Lamborghini you can have a cabin or beach house! The Lambo loses value as you drive it, the house gains value as you live in it.

The map shows the western half of Washington State and the check marks are the locations of the cabins/cottages/beach houses I showed my clients over the week. Sure these spots are not exactly in the thick of it all, but that's really the point of a cabin, right? Getaway from all those crowds and city issues and hang out in the wilderness or watch the waves crash on the shore.

Interest rates have been rising but they remain well below the 50 year average and that means buying a cabin is cheap right now! Talk to your tax pro and see if you can write off the interest on the "second home" and you might be pleasantly surprised to find out you can.

Washington State is chock-full of deals ob cabins in out of the way locations. As for the beach, we have the best beach house deals around. There is a tiny window here while rates remain manageable. If the cabin is not financable and you have a large chunk of equity in your home, you might be able to use some of that equity to pay cash for a cabin or other second home. 

Remote off the grid cabin... hmm... seems pretty legit :)

Country Properties Have their Own Set of Concerns

Many people have always dreamed of having a country estate on a nice big 'spread' of land. This is all fine and well but often these types of properties can have their own issues before and after purchase.

Buyers using FHA financing have to be acutely aware that larger than 5 acres is something FHA gets 'nervous' about. I just closed on a manufactured home sitting on 17 acres and that was a tall order to get done. But we got it done, none-the-less.

Both buyers and sellers need to understand that these types of properties are often more challenging to close. This is not the type of transaction to try out on that brand new loan officer. A seasoned pro is needed to navigate the treacherous waters of government backed loans.

Buyers absolutely should get an inspection on any property, but a rural place on large land is even more critical. Out in the country natural animal pests are a larger concern and often these types of properties have the additional concerns of a well and septic. These can be expensive to fix or replace and buyers need to be certain they understand what they are getting into with a particular property.

After purchase, buyers need to be very pro-active in sealing up any possible entry points for rodents and other wild critters. If the parcel is large enough or covered in forest, vegetation and such, as to not be all visible in one take, walking the property on a regular basis is important. You don't want people dumping on your land, nor do you want to let encroachments or squatting go on as this can lead to expensive and time consuming legal problems.

The bottom line is that the dream of a country estate is very accessible and following good practices can make that dream a lifelong reality.

Land Opportunities Abound

In the local market we are still fortunate to have a large area in which homes can be built on five acre estate parcels. These need not be far away from town, and many in fact are very close in.

I recently showed a five acre parcel ready to build in Hockinson just five minutes out of East Vancouver. It was listed at $179,900. Buyers dreaming about that country estate should consider looking now. Land prices are inching up and rates for now remain low. Building costs however have been rising sharply. Building materials are experiencing price increases that are disproportionate to the economy at large. This could be due to the recent heavy demand added by a major influx of suburban and urban development in the local market.

Here in Clark County five acre building sites abound from areas in close like Camas, Hockinson, or Ridgefield all the way out to places like Yacolt and Amboy. The further out locations will often yield better pricing. The trade off becomes convenience versus value.

Some of the lots that are found for sale are located in subdivisions with a strict set of CCRs or even an HOA that may place restrictions on the size and type of buildings. Other lots are relatively unregulated in that regard. Our office currently has a generous supply of listings for buildable land. I am quite impressed with the variety.

Red area is seeing suburban development pressure,
yellow area remains mostly rural in nature
and is outside of the urban growth boundary

For those who wish to have a five acre estate in close to the city, the time is now. These types of parcels are reacting to the increased pressure from hungry buyers. Soon land pricing couple with building costs may push these completely out of the reach of the middle class.

The future of housing is in cramped quarters with neighborhoods stuffed with homes on tiny lots. The chances to own some space grow thin as increased regulations and the finite nature of land create a market that can only get tighter. In the graphic shown the area in the inside the yellow line is all within 20-25 minutes of PDX and has many opportunities to have a five acre country estate.

We are very fortunate in the metro Portland-Vancouver area to still be able to have a rural country home less than 30 minutes to the city core. Seattle lost that ability long ago. Those wishing to enjoy the country estate are well advised to make their move now.