Buying land can be a tricky matter for many people, especially when they’re first getting started. No matter how valuable a property may seem at the time, it may not take very long to realize there were more strings attached than you thought. Before signing a contract, here are a few facts to keep in mind.
Zoning laws
Building in certain neighborhoods may be difficult, depending on the size and configuration of the property. You also may want to consider how future laws will affect your building. For example, consider costs of complying with energy conservation or environmental protection laws.
The state of the land
It’s crucial to know if the soil has been contaminated while the land sat vacant, how fast the tree roots are growing and whether the ground can support certain infrastructure. If the roots are moving close to the property site, you’ll need to factor in the cost of removal.
The neighborhood
Some folks jump on “up-and-coming” neighborhoods, only to find the demand is less than expected. Other times, it might take too long before a neighborhood to become valuable. Think about what you’ll do if you can’t sell for the price you want (e.g., rent, etc.).
Buying land can be a great way to both meet the housing demand in an area while generating profit for you. The key is to consider the most common scenarios (and problems) that may occur before moving forward.
