Pros and Cons of Buying Land in Missouri

Missouri stands out as a prime location for potential land buyers, with over a quarter of its acreage in private ownership. For investors eyeing the versatile opportunities the Show Me State offers, evaluating the advantages and drawbacks is essential to ensure alignment with personal goals and intended use plans.

Overview of Missouri

Characterized by diverse landscapes, Missouri boasts the Ozark Mountains and sprawling forests in the south, transitioning to plains and hills further north. Major water bodies like the Missouri River and the Mississippi River, alongside numerous lakes and reservoirs, enhance its charm. The state's significant urban centers include Kansas City and St. Louis, and as of the 2020 census, Missouri had a population exceeding 6.1 million.

Living expenses are notably affordable, with a cost of living index of 86.9, making it appealing for both residents and land buyers. The state's excellent transport infrastructure, including highways, railways, and airports, positions it strategically in America's heartland.

In addition to its diverse economy—with sectors such as aerospace, automotive, and tourism—Missouri offers cultural attractions and outdoor activities, making it a well-rounded locale for land investment.

Pros of Buying Land in Missouri

**1. Affordable Pricing**
Missouri provides relatively low prices for land compared to the national average. As of 2020, the average selling price for rural residential land was approximately $2,700 per acre. Comparatively, average prices for crop and pastureland hover around $4,500 per acre, significantly lower than states like Illinois. Rural areas, especially in the Ozarks, often see even lower prices, making it ideal for budget-conscious buyers seeking recreational or agricultural lands.

**2. Recreation and Tourism Potential**
The state is home to popular tourist destinations, including the Lake of the Ozarks and the Ozark Mountains. Millions flock to Missouri annually, which means there are lucrative opportunities for landowners to tap into the tourism sector by developing rental properties or hospitality businesses. With tourism representing Missouri's second-largest industry, the potential for rental income remains high.

**3. Business Incentive Programs**
Missouri actively promotes economic development through various incentives for businesses, including tax credits and infrastructure assistance. For land buyers with long-term commercial plans, these incentives, particularly in manufacturing and tech, can significantly enhance the appeal of investing in commercial plots.

Cons of Buying Land in Missouri

**1. Volatile Agricultural Market Trends**
While land prices remain reasonable, agricultural markets have experienced volatility, especially in recent years. Post-2014 downturns saw prices dip significantly, creating unpredictability for buyers interested in agricultural investments. This volatility poses risks for those looking to invest in farmland for crop or livestock production.

**2. Variable Climate and Natural Disasters**
Missouri’s central location subjects it to extreme weather, including tornadoes and flooding, particularly in the spring. The potential for billion-dollar natural disasters necessitates careful consideration for buyers, especially those investing in agricultural properties, as storm damage can severely impact income.

**3. Remote Parcel Drawbacks**
Purchasing remote land may lead to additional costs if the parcel lacks infrastructure. Without roads or utilities, development costs can add up quickly, diminishing the initial savings from lower land prices. Buyers should thoroughly assess the accessibility and infrastructure before closing a deal to avoid unforeseen expenses.

**4. Reselling Rural Land Difficulties**
Investors hoping to quickly resell land may find it challenging, especially in rural areas. Empty plots usually take longer to market and may require significant discounts to attract buyers. The time and effort involved in promoting such land can deter those aiming for a fast return on investment.

Final Words

Missouri’s blend of natural beauty, affordability, and cultural richness makes it an attractive option for land buyers looking for both recreational and commercial opportunities. However, buyers should remain vigilant about the inherent risks, including agricultural market fluctuations, climate considerations, and potential challenges with rural resales. Thorough research will ensure you make an informed decision that aligns with your long-term land ownership goals.

Frequently Asked Questions (FAQs)

**What types of land are available for purchase in Missouri?**
Missouri offers various types of land, including cropland, pastureland, timberland, and recreational properties, with options for both urban and rural settings.

**What factors most influence land prices when buying acreage in Missouri?**
Essential factors include location, access to utilities, parcel size, and surrounding land use, all of which affect property valuations.

**What is the process for buying land in Missouri?**
The buying process typically involves research, financing arrangements, and due diligence before closing.

**What closing costs can a buyer expect when purchasing Missouri land?**
Closing costs range from 1-5% of the sales price, covering legal fees, taxes, and title insurance.

**Can a buyer build structures like homes or outbuildings on vacant land purchased in Missouri?**
Yes, most parcels allow for building, but buyers should check zoning regulations and septic system requirements based on the land’s designated use.