Buying land is one of the best types of investments in real estate. It’s where you can build your home or commercial property. Or you can sell it in the future after waiting for its value to appreciate as real estate assets do.
Especially if you’re looking for a long-term investment, buying land can be good. But to ensure that you’re going to benefit from your land purchase, you should consider the following factors before buying:
Location is a top priority when planning to buy land. Consider the overall community and location. For example, the land from the same locality is pricier if it’s situated in a quiet spot. On the other hand, a lot adjacent to a busy roadway will be cheaper.
Moreover, it’d help if you also considered the land’s proximity to the following:
- Water: Check if the land has access to a river or lake, especially if you plan to build a cabin. Vacationers also prefer a property where you can boat, fish, and swim if they plan to rent your place. However, this proximity could mean more expensive land.
- Neighbors: Again, this factor would depend on your preference. If you want a property that’s secluded, you’d prefer buying land with fewer neighbors. However, if socializing isn’t an issue, you’re most likely to go with land that has residents. Whatever your preference is, you can scour sites offering various land options, such as companies like Teton Valley Realty.
You can’t afford to go wrong when choosing a location, so ensure you got all considerations covered.
Next to location is your budget. Before you sign off a contract, you must first be financially prepared. The location affects the price of the land. Besides the price, you should also expect other expenses related to a land purchase. Some of these are as follows:
- Certificate of occupancy fees
- Survey plan fees
- Agency fees
- Legal fees
Of course, one of the most significant expenses is the cost of building a structure or home on the land. Before starting your project, though, you need to safeguard your land by erecting a fence or landmark showing the boundary of your property. These can affect your finances over the long run, so knowing the expenses can help you gauge your financial capability.
If you can’t afford your prospective land, then try different ways to finance your land purchase. You don’t have to rely on your savings or cash if you can find financial institutions to support your purchase.
3. Zoning Restrictions
While you may have plans with the land after purchasing it, you may not accomplish such plans. There are restrictions that zoning laws implement. The zoning laws provide what you can and can’t do with your land. For instance, you can’t have a sewage processing plant beside a town square. Or business people can’t develop or build a big mall in another person’s backyard.
The point is, you can’t just do whatever you want after purchasing land. Before you buy land and plan what to do about it, you should check out the zoning restrictions of the locality the land belongs to. Doing so will help you avoid liabilities or wasting time and money.
You can find the basics of zoning by going to the zoning offices or searching online about it. While the present zoning restrictions will apply, it’s also best to assess the future. It means you should learn about the scheduled road additions and other long-term land use plans the locality is planning because the zoning restrictions may change after some years as an effect of the plans.
The land’s direction can also be a factor, especially when designing your home. Knowing this will help you take advantage of the sunlight as you can plan where the house faces, avoiding direct sunlight’s negative impacts throughout the years.
Orientation also considers the prevailing wind in the land. Depending on the location of the land, you may want an orientation with easy access to cooling shades and breezes. As such, you can reduce your cooling or heating needs accordingly.
5. Amenities, Utilities, And Infrastructure
It’d be best if you also considered the width of the streets around your prospective land. This aspect will be vital if you want to live in that location, especially if you’re a working adult or a parent. The easy access to roads can help you go to and from work or send and fetch your kids to school.
Besides, you may also have to check if the land has easy access to playgrounds, parks, swimming pools, clubhouses, and other community facilities, all of which will depend on your lifestyle.
Another consideration is whether you can connect to a communal sewerage system or set up your own. You must carefully check this out, as a communal sewerage system can lessen your expenditures.
Most importantly, you should check that the land is an excellent spot for an internet connection or cell site signals. The internet connection can help you with tele-education and setting up a home business. Of course, you’d want to have a land that cell sites can reach unless you want to live in isolation.
6. Hiring An Agent
If you have other businesses to attend to, hiring an agent when buying land is a viable option. An agent can help you find the most suitable land for your investment or personal needs, conduct negotiations, close deals, and meet other real estate requirements. You can free yourself of these tasks by working with an experienced and reputable real estate agent.
Buying land can both be exciting and overwhelming. Unlike shopping at a department store, land purchase requires you to do your due diligence to make the most of your investment. You must assess the land’s location, budget, zoning restrictions, orientation, and amenities. You can do all these, but it may be best to have a professional help you with such so that you can buy land that can yield a return on your investment.