Top tips when it comes to buying land
Investing in land can feel like a risky endeavor, but with the right mindset and knowledge, it doesn’t have to be.
According to the UK Land Directory, the price of residential land has risen eight-fold over the past 20 years. If you are thinking about investing in land rather than concrete property, there are some things to bear in mind to inform your purchase.
Be realistic about your expectations
Many look to invest in land with an idyllic view of what it will be, and then become disheartened when it requires more effort than they are willing to put in. To have a successful acquisition of land, you need to do your research to understand and mitigate the risks. By analysing the market in your area, you will be able to assess whether the land, legal and survey costs, building costs and the unforeseen is really within budget. Then you need to assess whether your project will make a realistic profit.
Determine the plot’s history
Ensuring that there are no environmental issues before you buy will save you a lot of trouble in the long run. Without this research, there is the potential that you will be liable for any environmental problems once the property is developed in your name, which would make the land very hard to re-sell. Get in touch with a professional surveyor and find out what the land has been used for, why it’s for sale, and other important facts about the area you’re considering.
Examine what the neighbouring land/properties are like
When it comes to re-selling the property for a profit, the adjoining properties in the area could have a large impact. If there are any problems in the surrounding area that are beyond your control, while the land itself may seem a good investment, you could be left unstuck if you’re unable to sell once you’ve developed on it.
Find out the availability of utilities
Although the land might be in a beautiful and scenic area, if there is not access to water, sewer, electricity, phone and (fast and reliable) internet, then it may not be considered a worthy build. As most people buy land to build on you will need to be aware of anything that will make the property unlikely to make a profit.
Determine if there are any usage restrictions
Make sure that you understand the restrictions in place within the city or township, so that you do not end up in conflict with the local council or find yourself forced to pay fines for not adhering to planning rules and regulations. In the main, most restrictions will be understandable and will benefit you as well as the whole area. However, there are times when the restrictions are not in keeping with the plans that you have with the land. Get yourself in the know now and avoid any pains later.
Written by: John Padgett on Friday 23/10/2015