Buying vacant land is an exciting process. With vacant land comes the opportunity to customise a property to your personal tastes and specifications. However, buying vacant land also presents its own complexities and difficulties. Whilst each situation is different, these are some general do’s and don’ts to follow when buying vacant land.
DO Scope out your location
In real estate, location is key. This also applies to vacant land. Before buying vacant land, think about what it would be like to live in the area of the land. How is the commute to work? Where are the nearest retail spaces? Is public transport accessible? Will you have appropriate access to other necessary amenities like schools, medical centres or gyms?
DON’T Talk to the neighbours first
It may seem tempting to talk to the people who may be your future neighbours before buying vacant land, however, this act may lead to some unforeseen backlash which can halt development on your proposed property.
DO Research on zoning laws and planning controls
It is important to understand the regulations associated with an area of the land, such as the zoning laws and planning controls. These measures will affect the costs associated with owning and building, the dimensions and specifications of your property and whether or not you can even build property. Carrying out this due diligence before purchasing a piece of vacant land will prevent a potential onslaught of issues.
DON’T Think you can change zoning laws
Whilst it is tempting to try and appeal some of the zoning laws set, this can be an expensive and ultimately futile task. Instead, try modifying your plans to comply with set regulations.
DO Get environmental testing
Environmental testing analyses the structure and stability of the land to ensure that it is suitable for building. Important environmental factors pertaining to vacant land include soil quality and drainage. It is also imperative to check if electric, water, sewer and gas lines run on the land. If not, check in with utility companies to see if the appropriate lines can be built.
DON’T Take out a regular mortgage
Unless your particular situation calls for it, it is best not to take out a regular mortgage on a piece of vacant land. A mortgage typically uses the house itself to secure the loan and therefore it will be unlikely that a piece of vacant land without collateral will be approved for a regular mortgage. Instead, aim to receive a construction loan.
DO Keep track of ALL your costs
Buying vacant land and constructing property can be costly. Keep track of all the costs associated with the land, including hidden costs associated with building costs, land clearing, insurance and zoning laws.
Buying a vacant block of land is an exciting process, but there will be obstacles associated with the process. Doing your due diligence and planning ahead will help alleviate some of the stress associated with this otherwise exciting opportunity. Alternatively, if you need help to simplify the land buying process, our team of friendly experts are here to help! Call us on 1800 184 284 or book a call today!