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If you’re looking for a great investment, buying land is a route many choose to go on and have seen amazing results. That being said, it is important to be knowledgeable on what buying land entails and just exactly how you can turn it into a profit. This helpful list will provide you with five key things you will need to consider before going any further.
This may be an obvious one but if you want to know if you’re getting a fair price for the land you’re interested in, knowing what neighboring plots are going for is a great indicator. Are you getting a great deal or are you being overcharged? A well-connected realtor will be able to get this information to you so thankfully there won’t be a lot of grunt work or investigation in making the right decision.
In real estate, location is of major importance. Someone can find their dream home but if the location is not ideal, it can make or break their decision to buy. There are many things to consider when looking at the area:
Regardless of what you’re purchasing the land for, even knowing what other developments are happening close by can have a great effect on the success of your investment.
If it is your first time buying land, you may not realize that the mortgage is a bit different than for a conventional home. First and foremost, buying land is considered ‘riskier’ than buying an already-built home especially since construction is involved. You will have to expect that you will be paying a higher interest rate as well as many other costs associated with developing land. It is smart to be prepared and have a plan on how to finance the development of your land which a specialist can help break down for you. No one wants to have to abandon their project due to lack of proper financing.
In this day and age, internet and phone access is almost as vital as access to water. People need these services to do their jobs, to complete their education, to communicate with family, or to call 9-1-1 in the case of an emergency. Ensuring these things will be functional by the time of project completion is important to consider, which includes point #3 in terms of how much it will cost to have these things set up if they are not already. Setting up a good infrastructure for internet and phone lines early on can save you the hassle later on.
Last but not least, everyone’s favorite: zoning bylaws. For those not too familiar with the legal aspects of things, this is probably one of the biggest pain points. Your plans for your land may be impeded by certain bylaws and restrictions and it’s important to be up-to-date with what you are and are not allowed to do with that land. Don’t be afraid to ask questions and to reach out to professionals for help to prevent violating code which can delay your plans at best and be incredibly costly and time-consuming at worst.
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