Owning Land In Mississippi: Pros & Cons

Is buying and owning land in Mississippi something you should consider? Is it a worthwhile investment? This guide has all the answers.

Is Mississippi a nice place to buy and own land? Will you get a return on investment after buying and owning land in Mississippi?

The benefits of buying and owning land in Mississippi are unlimited investment options, considerable profit potential, solid investment, and the flexibility to build your dream home. The only cons to buying and owning land in Mississippi are higher down payment and a lack of immediate cash flow.

If you have plans of buying and owning land in the southern states, then Mississippi is one of the states to consider. But, is buying and owning land in Mississippi a good move or something you should consider? Well, this article has the answers. We will explore the pros and cons of buying and owning land in Mississippi. And by the time you finish going through this guide, you will have all the information to decide whether to own land in Mississippi or not.

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‍Overview

Located in the southern U.S, Mississippi is currently the 32nd most populous state. It’s bordered by Alabama, Tennessee, Louisiana, and the Gulf of Mexico. At first glance, it may appear like Mississippi has nothing much to offer. But, it has beautiful and diverse landscapes, stunning gulf coast beaches, as well as thriving rural life.

Also, the Magnolia state has a low cost of living. In fact, it’s one of the lowest in the country. Also, the cost of housing in this state is one of the lowest in the U.S, making it a great place to relocate to.

Mississippi has approximately six national forests, which provide great outdoor recreational opportunities, for those who love spending their free time close to nature. It's over one million acres of forestland and features diverse ecosystems like streams, rivers, and various lakes.

Another great thing about this state is that violent crime rates are considerably lower than in most other states. Hence, whether you are looking to buy and own land in Mississippi for building your home or developing in other ways, you can be assured your investment will be secure.

But like any other state, Mississippi also has a couple of drawbacks. They include a dull economy, harsh weather, a poor healthcare system, fewer job opportunities, and lower-quality education.

With this information in mind, you may be probably asking yourself whether buying and owning land in Mississippi will be a good move for you. Well, we will walk you through the pros and cons, so that you can decide for yourself.

Pros of Owning Land in Mississippi

If you are looking to buy and own land in the Southern States, then Mississippi appears like a great choice. But the question is, will you be making the right move? Let’s take a closer look at some of the pros of buying and owning land in Mississippi.

Unlimited Potential

One of the biggest draws of buying and owning land in Mississippi is that it has unlimited potential. With vacant land, you have numerous ways that convert it into a source of income. Some of the ways that you can make money with your land in Mississippi include:

Farm on the Land

Mississippi has some of the most fertile soils in the world, especially around the Mississippi River delta. And as much as the weather may at times be harsh, you can still invest in agriculture in this state.

Some of the crops that do well in Mississippi include tomatoes, cucumbers, peas, peppers, eggplant, squash, watermelons, corn, cantaloupes, and okra, just to name a few.

The Magnolia State is currently one of the largest poultry producers in the country. Hence, it has a strong network of markets for poultry, whether you decide to invest in broilers or layers.

Simply put, Mississippi has the climate and the soils needed to support agricultural production. So, after buying and owning land in Mississippi, you can decide to start farming on it right away and making money off it.

Lease the Land to other Farmers

In case you don’t want to farm on the plot of land that you will purchase and own in Mississippi, you can also decide to lease it to other farmers. Most farmers in the state are looking to expand their production without having to purchase new land. And, this is where leasing comes in.

So, if you decide not to invest in your land right away after buying and owning it, you can simply lease it to other farmers in the area. By leasing it, your farm will continue generating passive income for you, even as it grows in value.

Build Recreational Facilities

Another means of generating income with your Mississippi land is building recreational facilities on it. Some of the recreational facilities that you can put up after buying and owning land in Mississippi include RV parks, wedding grounds, campgrounds, or water sports facilities.

You can also rent out your piece of land for recreational activities like fishing, deer hunting, hiking, ATVing, and other similar activities. Mississippi is one of the leading states when it comes to deer hunting. So, you can be allowing deer hunters to use your piece of land once the deer hunting season opens, for a certain fee.

Plant Trees for Timber

Forestry remains one of the leading industries in Mississippi. Hence, if you decide to buy and own land in Mississippi, you also have the option of investing in timber production.

As much as you will need some money for this type of investment, the maintenance costs are minimal, once the trees start growing. And once the trees are mature, you will earn considerable profits from the trees by selling them to sawmills in the area.

Considerable Profit Potential

Another benefit of buying and owning land in Mississippi is that it comes with massive profit potential. When it comes to buying and owning land in Mississippi, it’s highly likely that you will buy rural land, since it’s not easy to come across vacant land in the cities.

And, rural land is highly affordable. Currently, an acre of decent farmland in Mississippi is going for around $3,000. And over the last couple of years, the price of farmland in the Magnolia state has been increasing by a rate of 6% annually.

So, in case you decide against developing the land, you can still hold it and re-sell it later on. In short, you will buy and own the land at a low cost and then sell it at a considerably higher price.

Solid Investment

The land is among the few types of investments that rarely depreciate. And, this can be attributed to two main factors. First, it’s finite. The size of available land on earth cannot be increased. Second, the human population is constantly growing. And, this growing population has to live somewhere, meaning the demand for available land will keep growing.

So, by buying and owning land in Mississippi, you will have a secure and safe investment, which you can sell later on at a profit. If you have some money that you don’t mind tying down for some years, then you should consider buying and owning land in Mississippi, and you won’t regret your decision.

Flexibility to Build Your Desired House

Buying and owning land in Mississippi gives you the flexibility that you need to build your desired house. As long as the local zoning regulations allow, you have the flexibility to build any type of house that you want, depending on your preferences.

For example, if you want a Victorian type of house, then you have the freedom to build it. And if a cottage-style house is what you prefer, then you have the land to design it the way.

Besides having the freedom to build your desired house, you can decide to set it up anywhere you want on the property. After all, you are now the property owner. So, whether you want to build it smack in the middle of the land or on the edge, you get to decide what you want.

Minimal Maintenance Requirements

Vacant land comes with lower maintenance requirements, compared to most the other real estate investments like houses. After buying and owning land in Mississippi, you can just leave it as it is and wait for it to appreciate.

And during this time, you won’t have to undertake any considerable maintenance work on the land, apart from a few tasks here and there.

Cons of Owning Land in Mississippi

While buying and owning land in Mississippi sounds like a great investment, it also has some drawbacks. If you have plans of buying and owning land in Mississippi, then here are some of the drawbacks to be aware of.

Higher Down Payment

If you are looking to buy and own land in Mississippi through financing, then you can expect to pay a higher down payment, compared to the one you would pay if you were buying developed land.

When it comes to buying and owning developed land, you can expect to put a down payment of approximately 15% to 25%. But if you are buying raw or undeveloped land, you may be required to pay a higher down payment of up to around 50%.

The reason behind the higher down payment is that the property doesn’t have any buildings, structures, or any form of development, meaning the financier doesn’t have a solid guarantee. Hence, they may charge you a higher down payment.

Negative Cash Flow

Another potential downside to buying and owning land in Mississippi is that it will not generate any income right away. Even if you will develop the land or farm on it, these investments will take quite some time before they can start bringing you any income.

At the same time, you have to continue paying property taxes on that piece of land, whether you have developed it or not. So, you will be paying for these fees from your pocket. Hence, land may not be the right investment for someone who can’t afford to have their money tied up.

Considerations When Buying and Owning Land in Mississippi

It’s clear that buying and owning land in Mississippi comes with more benefits than drawbacks. However, there are several factors to consider, before you proceed with this transaction. Below, we outline the key factors to consider when it comes to buying and owning land in Mississippi.

Location

If you are planning to buy and own land in Mississippi, then the first thing you need to consider is the location. Location will determine everything else from the moment you acquire the land. So, regardless of whether your reason for buying and owning land in Mississippi is prospecting or you want to develop it, make sure you pay close attention to the location.

If you are planning to build your home on the land, then you should ensure you choose somewhere livable. If you are planning to flip it, then you should make sure the land is located somewhere there’s demand. Besides, make sure you choose land in a location where you can turn a profit after flipping it. In case you have plans of developing the land, then you should choose one that’s located close to your target customers.

Utilities

It’s also important to make sure that the piece of land that you buy and own in Mississippi has access to utilities. Even if you are planning to flip it after buying, potential buyers will still enquire about access to utilities. And if there are none, you will struggle to find a buyer. So, check and confirm that the land has access to vital utilities like water, sewer and electricity. If there are none, then you should consider exploring other options.

Road Access

Road access is something else worth considering before you buy a piece of land in Mississippi. While it may not be an issue in urban areas, road access can be a serious issue if you buy and own land in rural Mississippi. If the land lacks road access, developing the land or living on it will be a challenge. Again, finding the right buyer for such a piece of land will also prove problematic.

Zoning Laws

Zoning laws are rules that determine what you can or can’t do with a piece of land. And, failing to consider the zoning laws in a particular can prove to be a costly mistake, especially if you have plans of investing in the land. So, ensure you check the zoning laws in that area to determine whether they align with the idea you have in mind for the land you are looking to buy and own in Mississippi.

Wrapping It Up

If you are looking for a great, long-term investment, then you should consider buying and owning land in Mississippi. On the other hand, if you are looking for a short-term investment, then buying and owning land in Mississippi may not be the right choice for you.