Buying rural property
By Melanie Chambers • Bankrate.com

Judy Scott had a lot to learn when she moved to the country. She had some initial reservations when her family left the town of Alliston, Ont., to move onto five wooded acres southwest of Ottawa six years ago.

"I was terrified of running out of water and dying of thirst in the wilderness. I'm a city girl," says the former suburbanite of 28 years. In town, she never thought twice about where the water came from, if the garbage would be picked up, or how she'd get out of the driveway after a snowstorm. But once she moved to the country, it was a whole new story.

Buying a country home may seem romantic, but there are many factors to consider before you pack up your city life. Beside the obvious lifestyle changes, there are tax issues to consider, water and sewer systems are your responsibility and the costs of maintaining a rural property can be high.

So, is country living for you? Read on to find out what to look for in a rural property before you sign on the dotted line.

The basics: water, toilet, heat
In the city, your home's water and sewer lines are hooked up to a municipal system. Because most country properties are too remote to be on a municipal system, you have to make sure these two systems are up to current codes and in good working order.

The water should be tested if it comes from a sand point or drilled well -- most municipalities provide a free testing service. You should also ensure the well is a concrete tube and not a brick, as brick deteriorates and can allow contaminants to leak in.

You also want to find out how much water is available in the well. A drilling company can test this for about $150.

On the septic side of things, gather as much information about the septic system as possible: when it was last been emptied, where it is on the property, its age, its depth and its recovery rate. Also ask about the type of septic field and the water table level in the area.

To get a handle on what it costs to maintain a country house, request recent copies of the hydro and gas bills. "If you're in the middle of a field and there [are no] breaking trees around you, it's a lot more to heat," says Mick Daum, a sales representative for Nu-Vista Progressive Realty in London, Ont. Homes surrounded by trees, on the other hand, don't face the full effect of a cold wind come winter.

Survey the situation
In terms of an overall view of the property, a land survey will reveal all the outer buildings and property lines. If there isn't a survey, you can have one completed for between $300 and $3,000, depending on the size of the property and its location.

Also, make sure you receive a property information statement signed by the seller, which reveals everything about the property that isn't visible: wiring, plumbing, what the property was used for in the past (good to know if it was used for farming or mining) and any issues around the property.

Insurance for rural properties can be costly. If you live further than 10 kilometres from a fire station, have wood shingles or a wood stove, for example, some insurance companies may bump up their premiums or refuse to insure your home at all. So, you may have to shop around for a good deal. Ask your realtor to suggest a company that works well with rural landowners.

Taxes, taxes everywhere
Taxes fell for Deborah Carr when she moved to the country. Living in Moncton, N.B., she paid about $1,200 per year in property taxes. When she moved outside the city, her taxes dropped to $600 annually. "We often like to reflect about the tax rates in Toronto and Vancouver," says Carr.

The main reason for the big difference is that country areas often have a lower assessed value than properties in the city, says Alan Silverstein, a real estate lawyer in Toronto. But that assessed value could change in a heartbeat. If there are plans for future developments, your little slice of quiet heaven can turn into suburbia and thereby raise the value of the land and your taxes.

Similarly, if you have your own water and sewer line but the municipality plans to extend its own systems and hook you up, your taxes will rise. "For any improvements added on, they have the right to tax you," says Silverstein.

Mortgage matters
Besides a few stipulations, a rural mortgage is a "pretty straight-forward transaction, and it looks a lot like a standard residential mortgage in the city," says Susan Brown, vice-president of the Calgary District Bank of Montreal.

Each bank varies slightly, but BMO looks at every situation on a case-by-case basis, says Brown. BMO rural mortgages require a certificate from local health officials proving the water is potable, or safe to drink.

The bank also requires a septic system check -- meaning, they want assurance from the municipality that the septic system is working. For some municipalities, this assurance is stated in the seller's property information statement, while other municipalities have their own paperwork.

Now, with all the financial details out of the way, the big question remains: Are you a country person?

Lifestyle changes and considerations
Driving 20 minutes to buy groceries and using slow, dial-up Internet are typical scenarios for rural dwellers.

To make the most of what country living offers, and to save money, Doreen Pendgracs, of Dugald, Man., suggests buying a pickup truck. It steam rolls effortlessly over gravel driveways in snowstorms, hauls firewood and can take your garbage to the local dump, which saves money if there is no municipal pick-up service.

And the last word on buying a rural property: View the house in the summer to breathe in the fresh air -- or not. Nearby pig farms or other equally smelly animals may ruin that romantic country setting of which you dream. So, check it out before you sign on the dotted line.

Melanie Chambers is freelance writer living in London, Ont.