Buying A Lot In Driggs (Idaho Falls, Sandpoint: condo, homes, established neighborhood)

[WesternRockiesSkier]

Hi All,

I'm in my 30s, single, and currently living in Bozeman. Land and home prices are insane in Bozeman, so I can't afford much besides a small condo.

Which has me really intrigued about Driggs. I still can't afford a home in Driggs, but land seems much more reasonable. My thought process is to two-step it. Buying a plot of land now and building on it later when I have the resources.

Would you guys say this would be a good investment/strategy? I'm thinking Driggs will only go up in value down the road.

Would appreciate some advice!

[AnythingOutdoors]

If you're going to do it, better buy sooner rather than later, because Driggs has already been "discovered." Per the Wall Street Journal: This Idaho Town Could Become the Next Jackson Hole

Your strategy isn't without risk. Wealthy people LOVE to buy property in expensive/nice locations, then make it more exclusive by limiting development. Things like radically increasing fees, tying the permitting process in knots, etc. So you may buy land only to have it nearly impossible to develop w/o spending a huge amount of money. Idaho law is favorable for private property rights and owners being able to do what they want on their land, though not sure how this insects with county and/or city politics.

[WesternRockiesSkier]

Originally Posted by AnythingOutdoors

If you're going to do it, better buy sooner rather than later, because Driggs has already been "discovered." Per the Wall Street Journal: This Idaho Town Could Become the Next Jackson Hole

Your strategy isn't without risk. Wealthy people LOVE to buy property in expensive/nice locations, then make it more exclusive by limiting development. Things like radically increasing fees, tying the permitting process in knots, etc. So you may buy land only to have it nearly impossible to develop w/o spending a huge amount of money. Idaho law is favorable for private property rights and owners being able to do what they want on their land, though not sure how this insects with county and/or city politics.

That's a good point about rich people making it hard to build. I see this crazy bureaucratic entanglement in Bozeman. There are so many hoops and fees to get through before one can build here.

But how about the land itself holding value? In case I face hurdles when I'm ready to build.

Thanks for sharing your thoughts!

[volosong]

I seriously considered Driggs when I was looking for my retirement home. I really like the area and never crossed it off my list, but discovered North Idaho and settled there. My only question to you is how will you support yourself, (and possibly/probably a family in the future)? Most likely, you will have to commute to either Idaho Falls, (a drive of more than an hour), or Jackson, (difficult in winter snow/ice).

[ejisme]

It's probably a good idea and a good investment, but does carry risks. Can you get work in the Driggs area? I assume you work remote now, but will remote work be available 5 - 10 years from now? As AO mentioned above, make sure you can develop the property you can buy. Your local realtor likely isn't the most reliable resource. Spend some time in the zoning and planning office in town and/or the county. Make sure your piece of property is developable to include building a homestead, drilling a well and installing a septic system. Likely the county has an acreage requirement, i.e. 1 domicile per 5/10/20/80/120 acres. If your lot doesn't meet the minimum then you have to seek a waiver, which isn't an easy thing to do.

But, depending on the rules of the land/county/city... it could be a great deal.

[AnythingOutdoors]

Originally Posted by WesternRockiesSkier

That's a good point about rich people making it hard to build. I see this crazy bureaucratic entanglement in Bozeman. There are so many hoops and fees to get through before one can build here.

But how about the land itself holding value? In case I face hurdles when I'm ready to build.

Thanks for sharing your thoughts!

When land becomes essentially unusable it's not worth much. That's the game. Billionaire buys land with a view and builds a huge estate home. Realizes the pristine view and exclusivity of location are a large part of the value. He starts seeing the land around him as critical elk winter range, or habitat for an endanger species or migratory birds (both get the Feds involved). So he organizes a land trust and/or conservation organization. Even if it's technically possible to build, they bog everything down with lawsuits and reviews. They have deep pockets and can outlast the little guys. They fund political campaigns, so local government is in their pocket. For all intents and purposes the land is preserved, which means you can't use it for much except look at it. With the land devalued, their land trust is more than happy to purchase it at a steep discount 'cause no one else in their right mind will.

I know, sounds pessimistic, but similar stories have played out throughout the west.

With this in mind, if you go through with your plan, I would look for lots that are more-or-less ready to build. And make sure it's actually buildable, no wetlands or conservation restrictions. Existing road access and utilities, an exiting well or municipal water. Certainly nothing that requires rezoning (if in city). Nothing that will impact someone's view. In other words, something like a modest lot in/near town. And I wouldn't wait a long time to build, maybe 5 years max before starting the process.

[WesternRockiesSkier]

Originally Posted by AnythingOutdoors

When land becomes essentially unusable it's not worth much. That's the game. Billionaire buys land with a view and builds a huge estate home. Realizes the pristine view and exclusivity of location are a large part of the value. He starts seeing the land around him as critical elk winter range, or habitat for an endanger species or migratory birds (both get the Feds involved). So he organizes a land trust and/or conservation organization. Even if it's technically possible to build, they bog everything down with lawsuits and reviews. They have deep pockets and can outlast the little guys. They fund political campaigns, so local government is in their pocket. For all intents and purposes the land is preserved, which means you can't use it for much except look at it. With the land devalued, their land trust is more than happy to purchase it at a steep discount 'cause no one else in their right mind will.

I know, sounds pessimistic, but similar stories have played out throughout the west.

With this in mind, if you go through with your plan, I would look for lots that are more-or-less ready to build. And make sure it's actually buildable, no wetlands or conservation restrictions. Existing road access and utilities, an exiting well or municipal water. Certainly nothing that requires rezoning (if in city). Nothing that will impact someone's view. In other words, something like a modest lot in/near town. And I wouldn't wait a long time to build, maybe 5 years max before starting the process.

The lot I'm looking at is an established neighborhood within the city limits of Driggs, with lot sizes being about .33 acres. Residential lots on both sides of the property.

[WesternRockiesSkier]

Originally Posted by volosong

I seriously considered Driggs when I was looking for my retirement home. I really like the area and never crossed it off my list, but discovered North Idaho and settled there. My only question to you is how will you support yourself, (and possibly/probably a family in the future)? Most likely, you will have to commute to either Idaho Falls, (a drive of more than an hour), or Jackson, (difficult in winter snow/ice).

Funny you mention North Idaho. I just got back from spending a week in Sandpoint skiing at Schweitzer. I really liked it, but lots are more expensive than Driggs for similar quality. I like how wooded North Idaho is, but not sure how I feel about rain/fog. It was foggy/cloudy the whole 5 days I was there. I'm still considering it, but I think I like Driggs slightly more.

As for supporting myself. I work in sales. My company sells windows and doors. I might be able to work from later, but it's not an option right now. My plan is to buy this land and eventually move to Driggs once I'm ready to build. Probably won't have the funds to build for about a decade, so mainly buying it to build on it down the road. If I can't build for some reason, hoping that it's still good investment, so I can potentially sell it.

[WesternRockiesSkier]

Originally Posted by ejisme

It's probably a good idea and a good investment, but does carry risks. Can you get work in the Driggs area? I assume you work remote now, but will remote work be available 5 - 10 years from now? As AO mentioned above, make sure you can develop the property you can buy. Your local realtor likely isn't the most reliable resource. Spend some time in the zoning and planning office in town and/or the county. Make sure your piece of property is developable to include building a homestead, drilling a well and installing a septic system. Likely the county has an acreage requirement, i.e. 1 domicile per 5/10/20/80/120 acres. If your lot doesn't meet the minimum then you have to seek a waiver, which isn't an easy thing to do.

But, depending on the rules of the land/county/city... it could be a great deal.

I think I would be able to find work in Driggs down the road. I'm not planning on building for 5-10 years (due to lack of funds), so I'm not in a huge hurry about moving down there. My job is paying me well in Bozeman, so I want to keep it for the time being. It takes about 3.5 hours to drive down from Bozeman to Driggs.

[Cnynrat]

Originally Posted by WesternRockiesSkier

Funny you mention North Idaho. I just got back from spending a week in Sandpoint skiing at Schweitzer. I really liked it, but lots are more expensive than Driggs for similar quality. I like how wooded North Idaho is, but not sure how I feel about rain/fog. It was foggy/cloudy the whole 5 days I was there. I'm still considering it, but I think I like Driggs slightly more.

You didn't experience Schweitzer at its best, it's been a really slow start to the season so far this year. That said, we do have a lot of lo-viz days. The recent rainy weather was unusual for this time of year. They say Schweitzer is an old German word that means "Can't see @&>/."

We thought about Driggs before settling on North Idaho. We like the forests here, so that sealed the deal for us. The abundant forests do come with wildfire risk, and that leads to frequent smoky times during late summer and fall. Something to be aware of if you ever consider moving up this way.

Buying land as a long term investment always has its risks. As others have pointed out various external factors can change which affect the value. In a suburban type environment I don't foresee that being a big risk, but you never know.

I don't know what the political environment is like in Driggs, but in general idaho is a place where property rights are highly valued, so I don't think it's as likely that you would see restrictions put in place that create huge barriers to building. The AG's office would take a dim view of that. BTW, I serve on the Bonner County Planning Commission, so I have a pretty good handle on how that all works here.

Dave