Acquiring land for residence and for subsistence calls for the exercise of good business judgment. Not only must the site and general location be acceptable to the family, but the investment involved should be within the capacity of the owner to finance without undue strain on his resources. It should be recognized that there will be ordinary living expenses to be met in the country and perhaps some extraordinary demands resulting from emergencies. Consequently, adequate thought and preparation must be made for financing the investment and making sure, as far as that is possible, that the investment in a country home will not be lost through inability to meet possible contingencies.

It goes without saying that the capital investment should be kept as low as possible. Wherever feasible, the cash available should take care of the full investment without the necessity for additional financing. This reduces the drain upon resources through obviating the necessity of meeting interest payments on mortgages and makes possible the use of any surplus funds for improvement, for education and for giving the family the advantages which country life offers. If it is necessary to borrow funds for financing the purchase, special attention should be given to the type of mortgage which is obtained.

Mortgage Financing.—One of the most desirable types of financing is through a financially sound building and loan association whereby the interest and the amortization of the mortgage are taken care of through monthly payments. Such building and loan mortgages are available in most localities throughout the country. A series of monthly payments can be made which will take care of the interest payments and the mortgage itself so that within a period of from ten to twelve years, in most cases, the mortgage is amortized and the owner has the advantages of a home that is free of encumbrance. For example, if the mortgage amounts to $3,000, subscription to fifteen shares of a building and loan association at $1 a share per month would make it possible to clear off the mortgage in about eleven years. This would call for the payment to the association of $15 per month and interest. Through the compounding of interest, the mortgage can be lifted at less expense than any other procedure.

Another satisfactory plan is to place the mortgage with a bank or financing company or insurance company that will not call the mortgage so long as the payments are met, and at the same time start saving through a building and loan association so as to complete the payments over a series of years.

There is a far greater sense of security in having no mortgage or in setting up a definite and practical procedure for eliminating it than in always having a mortgage encumbrance with its interest payments and the possibility of having it called at an inopportune moment. A home that is free from mortgage can be carried at small cost, especially where the owner is willing to make most of the repairs and attend to the upkeep himself. The demand for outlay of cash for mortgage interest may be financially embarrassing, especially where income is not guaranteed or may be jeopardized through a drastic reduction at critical periods or as the result of emergency expenses in the family, such as are entailed by serious illness.

Taxes.—One of the factors that is frequently overlooked in the purchase of a residence in the country is the cost of meeting taxes. Since taxes must be met if the property is to be held, it is highly important that the location be one in which tax rates are not excessive. On the other hand, an exceedingly low tax rate may indicate lack of progressiveness in the community and lack of facilities which from many angles would lessen the value of the tract as a place of residence. In most localities, the tax rate is based principally upon the costs of building and maintaining highways and schools. Good facilities in both of these respects are highly desirable, and yet excessive expenditures in either direction may so advance the tax rate as to make them expensive luxuries.

In many rural communities, taxing districts are burdened with the costs of building monumental schools or a very elaborate system of roads, undertaken at some time through the flotation of bond issues. The establishment of a sinking fund for payment of interest and amortization of these bonds frequently constitutes a very heavy drain upon the residents of the district. It is, therefore, necessary to determine not only the tax rate in the locality under consideration, but also to know definitely what are the current charges for maintenance of government. Taxing methods vary so widely, even in adjoining districts, that the only method of determining the annual charges for taxes is to secure from the present owner or from the local tax assessor the definite payments that must be made.

As a means of saving trouble later, an investigation should be made of the property under consideration to make sure that taxes have been paid to the date of purchase. This is distinctly the obligation of the owner. Unpaid taxes constitute a lien on the property, and an investigation of the status of the tax payments is essential in protecting the proposed investment.

The Title and Survey.—A great deal of possible trouble can be eliminated by making sure that the title is clear. An investigation should be made along this line by an attorney or agency equipped to secure information from appropriate county offices. Very often the owner has had a recent search made and is willing to pass this on to the purchaser, thus saving expense and delay in tracing back the records over a long period of years. Such study will show whether there are encumbrances or liens of any kind on the property, and these, of course, must be cleared up before any transaction is entered into.

The potential buyer should also have a survey made by a competent engineer to definitely fix the boundaries of the property. Stakes can then be placed, indicating the corners and any irregularities in the outline of the area under consideration, showing the new owner exactly where his property extends. In many sections of the country the buyer is in a position to demand of the owner that such a survey be made at the owner’s expense. This survey is particularly important where an area of considerable size has been cut up into parcels for sale to individuals.

The steps that have been outlined to protect the investment are only those which a prudent purchaser will insist upon before transfer of ownership takes place. Frequently a buyer becomes so enamored with a property that he hopes nothing will interfere with his acquisition of it, and he is apt to mentally minimize the possibilities of a cloud on the title or the exactness of the property lines. So many people have suffered serious losses from failure to look thoroughly before leaping that emphasis is given to these points as a means of securing ample protection for the buyer.

An Income from the Investment.—It is presumed that in most cases the owner of even a small tract expects to secure some financial returns from the land as a means of adding to his income. The plan that is proposed as a means of securing an income from the land should not be too complicated and should be of a type that can be carried on when the owner is necessarily engaged in other work. This, of course, may run the gamut from a small home garden to supply the vegetable needs of the household to the operation of a larger tract on a commercial basis. Furthermore, as we get into the commercial type of production, that may be planned as a means of materially supplementing an income or eventually supplying the entire family income.

Especial attention has been given in recent years to the use of poultry as a means of supplying an income to the family which is willing to use its own resources for taking care of the flock. Another means of securing an income is the growing of vegetables and the sale of these vegetables at a stand erected near the house for the convenience of the traveling public. Many who engage in vegetable growing or egg production on a relatively small scale will find an outlet for their products through associates in some other line of work, who will be glad to buy from their country friends on the basis of quality and freshness that may not be obtainable through their community stores.

It should be pointed out that where the area under cultivation is small, the production must be intensive. In other words, it would be uneconomic for the owner of a small tract to try to supplement his income through the growth of staple crops. He must specialize in some particular phase of agriculture, horticulture or animal industry that will bring the largest possible net returns per acre even though that implies a considerably larger labor cost per unit of operation than would be the case in the growing of the staple crops, such as the cereals. The successful production of vegetable crops or poultry products, for example, and their successful merchandizing, rest primarily on the interest and the adaptability of the individual.

Avoiding Causes of Failure.—To know what procedures to avoid is to be fortified against failure and to be prepared to take advantage of those constructive measures which are conducive to success. A recent survey has been made in an eastern state on the causes of failure in farming, frequently followed by necessitous abandonment of the farm and home. This survey shows that one of the principal causes of failure is the effort to manage a farm that is too large for the operator’s capacity; his inexperience and lack of knowledge constitute too great a handicap on a large acreage. Best results can be secured in farming only by seeding, cultivating and harvesting at the proper time in each case. To a greater extent than is usually realized, success depends upon good management, which means doing the things that need to be done at the right time.

If the farm is large there is a necessity for employing hired labor, and the costs of this labor, especially under inexperienced management, are likely to be out of line with the value of the products raised. In many instances the lack of technical experience can be corrected by dependence upon governmental agencies, such as experiment stations, county agricultural agents and departments of agriculture. These services are available to every farmer, in most cases without cost, and all that he needs is the will to avail himself of such expert help. In the cases of farms that have been abandoned, we find that the operators did not make contacts with dependable sources of information, an indication of the necessity of cooperating with the agricultural agencies or with experienced and successful neighboring farmers.

Still another cause of failure lies in the purchase of a farm at a price which requires the assumption of a mortgage which is too high in relation to the income from the farm. In short, an attempt to operate on an overcapitalized basis will, sooner or later, lead to disaster. Failure to locate on a productive type of soil may easily lead to loss of the investment. If the local conditions, including good roads, school advantages and a healthy community spirit, are lacking, there will develop a feeling of discouragement and mental dissatisfaction which destroys morale and creates the desire to get out from under at any cost.

The Stocked Farm.—The question is frequently raised as to whether a farm should be bought already stocked with work and domestic animals and with farm equipment or whether it should be stocked by the operator himself. This will depend, of course, upon the type of equipment which may be available in the individual case. Sometimes fairly good equipment will be sold with the farm as a means of facilitating a sale, but the value of each item should be determined by someone experienced in prices of such livestock or commodities as may be sold with the farm.

In many cases the buyer has loaded himself with animals or equipment that are ill adapted to the farm or that are of no particular value, and in struggling to get along with them he may seriously handicap the efficiency of his labors. In most cases it will be found a better practice to add stock and equipment as the need becomes definite and the finances of the operator make it possible for him to add them to the farm. In this way he will be fairly sure of acquiring only those items which will be of direct use and benefit to him and will avoid an accumulation of worn-out or antiquated articles which will not meet the requirements he must observe in selecting tools for his work.

Avoiding Fire Loss.—Possibility of loss by fire is an ever-present reality to the owner of a country place. There are two methods of preventing loss, and the observance of both will contribute to the peace of mind of the owner.

In the first place, he should make sure that adequate insurance is carried on his buildings and equipment so that in case of loss through fire there will be sufficient indemnity to permit the rebuilding of the destroyed or damaged structures. Lightning heads the list of the causes of farm fires and is frequently not reckoned with by urban residents who have seen little evidence of its destructiveness. In cities, points of electrical concentration are avoided by diffusion through piping, metal poles and a number of other conductors of electricity. The owner of a country home can secure quite complete protection from damage through lightning by the use of electrical conductors, usually called lightning rods, properly installed. Such equipment does away with 90 per cent of the risk caused by lightning.In installing a system of lightning rods, it is well to observe a few simple precautions. The most exposed parts of a building should be provided with rods and the rod points should extend 3 to 4 feet above the structure. Conductors from the rod point should go in the most direct line possible to the ground and sharp bends in the conductors should be avoided. One of the most essential precautions is to thoroughly ground the conductors. Water pipes on the buildings furnish excellent grounding. The grounds for the conductors must be deep enough in the soil to reach permanent moisture. Lightning rods that are not properly constructed or properly grounded may be a worse menace than if no such protection is attempted. Specific methods of protecting farm buildings from lightning damage can be secured from state agricultural agencies or from reliable commercial firms which make a practice of erecting them.

Another cause of fires lies in unsound chimney construction. By using care and the proper materials in the building of chimneys, fire may be avoided. Chimney bricks should be laid flat rather than on edge, thereby practically eliminating the development of chimney cracks through which sparks can escape into floor spaces, attics and roofs.Fire risks to residences and other buildings can be reduced by building the roof of fireproof or fire-resistant materials. Wooden shingles, while attractive and inexpensive, may become so dry at certain seasons of the year as to furnish tinder for sparks that may rise from a brush fire or from burning buildings in the vicinity. The use of slate or asbestos shingles is recommended for roofs and there are other materials now on the market which have fire-resistant qualities and can be safely utilized. Flying sparks carried along on high winds constitute little menace to those who have equipped their roofs with non-inflammable materials.

It is important to see that electrical wiring has been properly installed, and for this purpose it is safest to secure expert help. If the menace of fire is properly evaluated by the owner, he will naturally take suitable precautions to cope with it, both through utilizing adequate preventive measures and through having available equipment to make possible the smothering of accidental fires which may develop. The application of these available common-sense methods of fire prevention will practically eliminate the fire risk. An ounce of such prevention effort is to be stressed rather than placing dependence on means of fire suppression after the combustion occurs.

Do’s

Keep capital investment as low as possible.

If part of capital must be borrowed, select type of mortgage that can be paid off most conveniently.

Determine tax rate before buying.

Make sure that title is clear and the property lines definitely fixed.

If some income is expected, check on possibilities of location with that in mind.

Plan to secure income from intensive crop and animal projects, e.g., vegetables and poultry.

Use governmental aids to the fullest extent.

Carry adequate insurance on buildings, equipment and furniture as protection against fire loss.

Install protection against lightning.

Be sure electrical wiring is properly installed.

Don’ts

Don’t become heavily involved with fixed financial obligations at outset.

Avoid localities with heavy bonded indebtedness, resulting in excessive taxes.

Don’t expect to get an income from growing staple crops such as grains.

Don’t become dependent on hired labor if it can be avoided.

Avoid unproductive soil and top-heavy investment of capital.

Don’t buy a stocked farm unless the stock is adapted to needs and properly valued.

Don’t neglect to take every precaution against fire.

Don’t forget chimney flues are potential risks.

Avoid roofs of inflammable materials.