Owning Land in California: The Pros & The Cons | Clark Company Ranch Real Estate (2024)

There are priceless rewards that come with owning land in California as well as arguments against it.

by Clark Company, a Ranch Real Estate Brokerage | ClarkCompany.com

Famous for its tourist attractions, recreational advantages, wine-growing regions, incredible weather and easy access to beaches, mountains and land to roam, California is an oasis for homeowners, families and ranchers.

These attributes, combined with year-round sunshine, geographic variability and fertile soils that support popular, high-value commodities, also make California a landowner’s dream.

Of course, no place is perfect. Land ownership in California, like land ownership in any other state, comes with pros and cons.

Pros

Some positive aspects of California living include the state’s agricultural and livestock industries and the diverse landscapes. The ultimate advantage is the endless opportunities that come with living in a warmer climate.

“Our weather/climate, which is nice for us, allows our farmers and ranchers to be the best in the world,” said Peter Dufau, President of Ventura County Lincoln Club.

Top Agricultural State

California is the nation’s top agricultural state—and has been for more than 50 years. According to the California Department of Food & Agriculture, the state is the largest producer and exporter of agricultural commodities in the U.S. and supplies the world with more than a dozen products including almonds, vegetables, garlic, grapes and pistachios.

Carla Young, a rancher whose family has been involved in agriculture in San Luis Obispo County since the early 1900s, said, “I have lived in California all my life. We produce foods that feed a big percentage of the world. Having land in California and being a part of raising crops and feeding the world is very important to me and a reason to own and buy land in this great state.”

By 2050, the United Nations projects that the world population will climb to nearly 10 billion people, an increase of two billion people in the next 30 years. Demand for food will continue to increase, and California has the agricultural production power necessary to meet that demand.

Because of its renowned agricultural productivity and efficiency, California is connected to many global markets, enabling the state to be one of the nation’s largest food exporters. Furthermore, with the rapid emergence of ag tech, California is uniquely positioned to steer this essential industry through innovations in production, harvest and processing technologies.

Diverse Landscapes

California’s landscapes vary widely: desert, mountain, vineyard, city, seaside—no matter your preference, it can be found in the Golden State. Living in California affords the opportunity to have a “change of scenery” within a matter of hours.

Perfect Weather

California’s weather is characterized by plenty of sunshine. The state’s rangelands are classified as Mediterranean, desert and intermountain, which creates multi-faceted opportunities for recreation, farming, ranching and more.

Most of the state has a Mediterranean climate featuring warm summers and mild winters and lending itself to long growing seasons. The weather, combined with California’s rich soil, affords the growth of hundreds of different agricultural commodities.

The warmer climate also means people can spend more time outdoors. California is home to a myriad of recreational activities such as hiking, fishing, hunting, kayaking and swimming. The opportunity to be outside year-round is a health boost for adults and children. Outdoor play is good for the body, mind and spirit.

Cons

While California boasts huge upsides, the Golden State does have a few less favorable aspects: regulations on water usage, the cost of living is higher than other states, and wildfires are always a threat in the state’s specific zones.

Water Usage Restrictions

Like most western states impacted by periodic drought and increasing demand for water, California has a framework governing water use. The goal is making limited supplies stretch as far as possible for both agricultural and urban consumers.

For someone looking to develop agricultural production on rural land, one potential stumbling block is the existence of historic water rights and usage. Of course, limited supplies means opportunities exist for those who can innovate, increase their efficiency and produce more with less.

High Cost of Living

It’s no secret that California’s cost of living is one of the highest in the nation. From housing to utilities and groceries, the prices paid in California are just higher.

As one Californian commented, “California is awesome. Awesome is expensive.”

With that said, California’s property tax rate, at less than one percent, is one of the lowest in the U.S.

Wildfires

While wildfires are an ongoing threat in California, even they offer an opportunity for savvy landowners. Livestock grazing has been proven to reduce risk of vegetation fires efficiently and effectively. Well-managed grazing can also keep land open and productive, and provide a regular revenue stream for those wanting to provide grazing to other local ranchers.

Final Thoughts

Land ownership in California is ideal for those who wish to invest in current and future generations by owning land rich in resources and high growth potential.

“Even with the arguments as to why California is a challenging place to be a landowner,” said Pete Clark, a fifth generation California rancher and Real Estate Broker of Clark Company, “owning land in one of the nation’s most fertile and beautiful states offers endless rewards and limitless opportunities.”

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Owning Land in California: The Pros & The Cons | Clark Company Ranch Real Estate (2024)

FAQs

Is it wise to buy land in California? ›

For land buyers, California brings major perks to the table. Home values keep climbing thanks to high demand but low supply. Booming industries like tech, healthcare and agriculture mean plenty of well-paying jobs. That gives buyers more purchasing power for scoring great properties.

What are my rights as a property owner in California? ›

A property owner in California enjoys a number of rights collectively known as the “bundle of rights.” These five rights associated with owning real property are: (1) possession; (2) control; (3) exclusion; (4) enjoyment and (5) disposition.

What are the disadvantages of owning land? ›

While California boasts huge upsides, the Golden State does have a few less favorable aspects: regulations on water usage, the cost of living is higher than other states, and wildfires are always a threat in the state's specific zones.

How does owning land make you wealthy? ›

Some of the advantages of land ownership include cash returns on sale, lease income, and added assets, and potentially increased borrowing power. The rule of thumb to make the land a valuable purchase is purchasing the right piece of land at the right price.

Do you pay tax on land in California? ›

Property taxes in California are applied to assessed values. Each county collects a general property tax equal to 1% of assessed value. This is the single largest tax, but there are other smaller taxes that vary by city and district.

What to know before buying land in CA? ›

These basic considerations or factors include: Zoning, Access, Power, Water, Sewage Disposal and more. Many of these factors influence whether or not one can build a home on the property. Although it may be your intent to not build a home (cattle grazing, hunting, etc.), you should still give them consideration.

What are the 3 property rights? ›

This attribute has three broad components, and is often referred to as a bundle of rights in the United States: the right to use the good. the right to earn income from the good. the right to transfer the good to others, alter it, abandon it, or destroy it (the right to ownership cessation)

What is the new renters law in California in 2024? ›

✨Security Deposits: Assembly Bill 12, effective July 1, 2024, caps security deposits at one month's rent, even for furnished units. ✨Eviction Regulations: The Tenant Protection Act tightens requirements for no-fault evictions and adds penalties for violations.

Does paying property tax give ownership in California? ›

The answer to what happens if anyone else pays my property taxes in Northern California is – nothing happens. Paying someone taxes doesn't make a person the property owner, but you'll become the owner if you purchase the tax deeds in the auction.

Is land a better investment than a house? ›

If you are confused whether to invest in land or a house, just remember more often than not, it is easier to sell a plot than it is to flip a house. The reason is simple: the resale value of buildings depreciate really quickly whereas the value of land increases with time.

Why buying land is better than house? ›

You don't need to pay utility bills, mortgages, or roof repairs and replacements. Another advantage is the owner of the land doesn't need to pay for the insurance. Property taxes are the cheapest, so your property doesn't demand unexpected costs and silently increases in value.

What are the benefits of owning your own land? ›

Unlike houses and commercial buildings, there are no mortgage or utility payments and no extra bills to pay. Furthermore, property insurance isn't even required when land is purchased outright. The best part? Depending on the land you buy, taxes can be incredibly low.

Why do rich people own ranches? ›

With this in mind, many billionaires are looking to invest in farmland. Land suitable for farming is a finite resource that is becoming scarcer as more land is being used for other purposes. As a result, farmland is becoming a more valuable asset.

Is it smart to buy land and build later? ›

Sometimes a perfect piece of land comes up for sale, and you can't pass it up. So, you buy the property first and wait to build until a later time. One of the benefits of buying the land first is that it allows you to find the perfect location early on.

Where are rich people buying land? ›

Flannery Associates has been grabbing plots of land in Solano County, about 60 miles from San Francisco, for the past five years. The company has spent about $800 million to purchase tens of thousands of acres of farmland with the support of tech billionaires, including Marc Andreessen and Laurene Powell Jobs.

Is buying property in California a good investment? ›

Generally, if you intend to stay in a property for more than 2-5 years, it becomes more worth it to buy a house in California. Over this time, you will build equity and benefit from property appreciation.

Is property in California a good investment? ›

Many believe California is a real estate investor's paradise since property taxes are reasonable. In addition, this state is considered a great place to retire, is home to a great infrastructure, and has a perfect climate with sunny weather and mild winters.

Where is the best place in California to buy land? ›

Best places to buy land in California
RankLocationCost Range
1San Diego$100,000 - $2,000,000
2Los Angeles$200,000 - $3,000,000
3Orange County$150,000 - $1,800,000
4San Francisco$400,000 - $3,000,000

Is it better to have land or cash? ›

While real estate is more lucrative over time than holding cash, it has more risk. On the other hand, holding onto money or putting it into something safe like a CD or savings account might earn smaller yields, but you have less chance of losing it altogether. Luckily, you don't need to choose just one place to invest!

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