Lot and Land
Buying a vacant lot might appear to be easier than buying a home but it actually does involve complex decision making. There are many reasons why people choose to purchase a parcel of land. It could be that it is being purchased as a long-term investment or even to start up a business. A buyer must be advised about the restrictions that apply especially if there are plans to build a house on the land. There is plenty to know before investing in property.
Every real estate expert will tell you it is all about location. No matter why you’re purchasing a piece of property, nothing is more important than location. If you’re making an investment, don’t buy land without resale value. Before shopping for a piece of land, you should develop a general idea of where you’d like to make a purchase. You can go for an exploratory drive and use online resources to help you.
It is important to consider access to schools, your job, shopping and restaurants. Basically, you are shopping for a community that meets your needs and that of your family. If you are purchasing land for a business, it is important to evaluate the business value. Another thing to be cognizant of is the fact that you will spend money before there is any digging. What expenses can you expect?
Title insurance is highly recommended. It will protect an owner and a lender in the event of any property loss as a result of liens or encumbrances. Insurance protects a buyer from legal complications. Title insurance is not required but if a mortgage is involved they might request it in order to obtain the loan.
A land survey is important, as well. Every landowner should know the boundaries of their property. The cost of surveys varies depending on the location and the level of professional experience.
Finally, remember that utilities and building costs will be expensive. In some cases, you may have to pay to have electricity and water run to your house before you even begin monthly service fees. On some land, you’ll have to drill a well or install a septic system alongside home construction. If your purchase if strictly an investment, many of these expenses will not apply.
Real estate is an investment of time and money — and the more time you spend preparing, the more ready you’ll be to spend your money wisely.
Source: “10 Things to Know Before Buying a Vacant Lot.” HowStuffWorks. Web. 02 Apr. 2013.
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