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How to Fund Land for Your Dream Natural Home
Tiny Insights from the Countryside.
No.068 — Read old posts on Tinyfarmlab.com
Reading Time 5 minutes
You’ve always dreamed of building your own natural home—
a place that feels like you, nestled in nature.
But the moment you think about the cost of land and construction, your heart sinks.
The idea of taking a loan feels overwhelming,
and your savings seem too small to even begin.
Like many of you, for us, the biggest and first hurdle was not the design or the material—it was finding land and figuring out how to pay for it.
We’ve been there too.
Back then, it felt like this dream of ours would always remain a far-off fantasy.
Small savings,
big fears,
and no clear plan to move forward.
But we did leap.
We covered how to find land in this video.
Today, We want to share what we have learned about funding land.
Both from our mistakes and by interviewing several city quitters on the Tiny Farm Friends podcast.
Option 1: Borrow Land
Find a landowner—this could be a friend, family member, or even someone advertising available land.
Write an email or letter to people close to you sharing your dream. Even if they don’t own land themselves, they might connect you to someone.
Once you find a landowner, you can offer them a deal.
The Deal
Offer to build a small cottage at your expense in exchange for using it for 4-5 years. Later you can rent the same place or include a clause that might allow you to buy that land and house.
Only pursue this if you plan to live in the house and pay rent.
If you intend to use the property commercially (e.g., Airbnb or workshops), explore a revenue-sharing model instead.
For commercial use, negotiate a longer lease—10-15 years—to make the arrangement viable for both parties.
Get the Landowner Onboard
Share your vision and passion for the project.
Show them photos, plans, or examples of similar cottages to inspire excitement.
Guarantee them a well-built, charming cottage they can enjoy after your agreement ends(This could hurt you emotionally).
Plan for the Future
Discuss all possibilities, such as what happens if they decide to sell the property.
Put everything in writing. This doesn’t have to be a formal legal contract but a detailed record of the agreement to avoid misunderstandings later.
By being transparent, fair, and thoughtful, you can create a mutually beneficial arrangement that works for both you and the landowner.
Make a clear agreement, ensuring both sides benefit from the arrangement.
Want to go commercial?
Use the land for workshops, retreats, or Airbnb rentals.
Propose a revenue-sharing model (e.g., 70% you, 30% them).
Negotiate a longer lease (10-15 years) to make it worth your while.
Borrowing Money for the Land and Building Your Home
The ideal scenario is to buy your own plot of land,
but this often means borrowing money.
Here’s what to consider:
Why Banks Might Not Be the Best Option
Banks often impose restrictions on how you build.
There’s a lot of bureaucracy involved, especially in rural areas.
They may refuse loans for natural or unconventional homes in remote locations.
Banks prioritize easy resale, not your vision for a sustainable, magical home.
They might even push you to build larger than what you truly need.
A Better Alternative: Borrowing Privately
If possible, borrow from family, friends, neighbors, or colleagues.
The money stays within your community, and the terms are often more flexible.
Interest rates are usually lower, and loved ones are more understanding if you’re late on a payment.
How to Approach Family and Friends
Have an honest conversation with your family.
Share your dream and ask if they’d be willing to invest or loan you the money.
Understand your family’s financial situation before asking for help.
Host a dinner or gathering where you present your vision to family and friends.
The founders of The Biggest Little Farm raised funds from friends and family to invest in 200 acres of land—an inspiring success story.
Crowdfunding
If borrowing isn’t an option, crowdfunding can work wonders.
Platforms like GoFundMe, Indiegogo, or Kickstarter allow you to share your dream with the world.
People are willing to support projects that resonate with them.
For example, Harsh Valecha raised $15,000 for a food forest in Kerala, with donations from over 500 supporters globally for Gaia Grid.
The key is to share your story with honesty and heart.
Grants and Environmental Funding
Many grants support sustainable building and rural development.
Research what’s available in your region—you might be surprised by the opportunities.
Our Journey
When we started building our mud house,
we didn’t have the money to buy land outright.
So we struck a deal with a family friend.
The arrangement was simple:
We leased the land for 5 years.
Built a structure at our expense.
Agreed to share Airbnb revenue (70% us, 30% them).
But there were things we didn’t plan for:
The bridge to the property was washed away every monsoon,
making it inaccessible for 4 months of the year.We thought construction would take 1 year; it took 3.
In hindsight, it wasn’t the smartest business decision.
But it turned out to be the most rewarding journey.
We learned so much—about building, about people, about ourselves.
We made friends from all over the country.
We won awards, got featured in magazines,
and gained consulting opportunities we hadn’t even imagined.
It wasn’t perfect.
But it was absolutely worth it.
Should You Lease or Buy Land?
Deciding whether to lease or buy land depends on your long-term goals, financial situation, and vision for the property.
Here's a breakdown of the pros and cons to help you make an informed decision:
When to Lease Land
Leasing is ideal if:
You’re Exploring Your Vision: If you’re testing an idea (e.g., building a natural home or running an eco-business), leasing allows flexibility without full commitment.
You Have Limited Funds: Leasing requires less upfront investment compared to buying.
You Need Temporary Use: Perfect for projects with a defined timeline, such as building a cottage you’ll use for 5-10 years.
Commercial Use with Revenue Sharing: You can negotiate a revenue-sharing model with the landowner, reducing financial pressure.
You Value Flexibility: Leasing allows you to move on if your needs change or if you outgrow the space.
Pros of Leasing:
Lower upfront costs.
No long-term financial obligation for land ownership.
Flexibility to leave or renegotiate terms.
Opportunity to test your vision before committing.
Cons of Leasing:
Lack of ownership and control over the property.
Risk of lease termination or sale by the owner.
Limited scope for long-term investments in the land (e.g., permanent infrastructure).
When to Buy Land
Buying is ideal if:
You Have a Long-Term Vision: If you want to build a permanent home, farm, or eco-village, buying provides security and control.
You Plan to Invest Heavily: Ownership allows you to invest in infrastructure or natural building projects without fear of losing your work.
You See It as an Asset: Land can appreciate in value, offering financial benefits in the long term.
You Want Freedom: Ownership lets you make decisions without restrictions imposed by a landlord or lease terms.
Pros of Buying:
Full control over how you use the land.
Long-term security for your vision and investments.
Potential financial growth through land appreciation.
Freedom to build or develop without external restrictions.
Cons of Buying:
High upfront costs for land purchase.
Mortgage or loan obligations, if applicable.
Risk of financial strain if plans don’t work out.
Key Questions to Ask Yourself
What is your timeline?
If short-term (5-10 years), leasing might be better.
If long-term (10+ years), buying is usually a better investment.
What is your budget?
Can you afford to buy, or would leasing free up funds for other priorities?
How flexible do you want to be?
Leasing offers flexibility; buying offers permanence.
What are your goals for the land?
Temporary projects (like a seasonal cottage) work well with leasing.
Permanent homes or farms are better suited to ownership.
Hybrid Options
Lease-to-Own:
Start with a lease and include an option to buy the land later.Co-Ownership:
Partner with others to buy and share the property, reducing costs and risks.
The Bigger Picture
Funding your dream home isn’t just about the money.
It’s about finding people who believe in your vision.
It’s about adapting when things go wrong.
And most importantly, it’s about creating something meaningful—whether it’s a home, a retreat, or simply a place that makes you happy.
For me, the journey was full of mistakes and lessons.
But I wouldn’t change a thing.
What’s stopping you from starting? Let’s talk about it.
Love,
Raghav and Ansh
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What you can watch - The Biggest Little Farm [Official Trailer]
What you can listen to - The Biggest Little Farm: John & Molly Chester | Rich Roll Podcast
The Chesters tell their story in 'The Biggest Little Farm' — a beautiful documentary that evidences the planet’s innate power to heal itself in synchronous partnership with humans devoted to restoring its precious biodiversity.
What You Can Read - Walden by Henry David Thoreau
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