What to Consider When Buying Land

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There are many reasons why people look for land for sale in DeRidder. The experts at EXIT Real Estate Consultants say that most people buy land so that they can build a residential property to either sell on for a profit or for themselves. But others buy land as an investment with the intention of selling it on for a higher price at a later date. In this article, we are going to assume that you are planning to buy land to build a home for yourself and your family. The following are a few things to consider before you do.

Your Finances

It is important that you think carefully about your budget and get your finances in order before you start looking for land. You need to know how much you can afford to spend on land before you start searching. Lenders are less likely to provide loans for land purchases, so you will probably need to have cash to make the purchase. Remember, if you are then planning to borrow for a self-build, you will need a construction loan rather than a standard mortgage; you may need to keep some money back to help fund the build. This is because construction loans are usually released in stages, according to the build timeline. Before money is released, the lender will send an inspector to ensure you are at the required stage of build.

Utilities Access

Some people will find a piece of land for sale, assume it is in a great location, and make an offer without doing any additional research. This can be a big mistake, especially if there are going to be any complications in terms of road and utility access. If you do not learn what access is like beforehand, you could find that this is a very costly mistake. You might end up paying a small fortune to get your land serviced, or you could finish up with a piece of land that you cannot build on.

Zoning Restrictions

Not all land is suitable to build on, and this is one of the most important considerations when buying land. You must make sure that your property is suitable for residential development before making a purchase because you cannot assume that it will be rezoned at a later date. Being aware of any current restrictions in terms of development will allow you to make a much more informed decision about whether to part with your cash or not. It may be that you are allowed to build a one-story property on the land but that you are not permitted to build any higher than that. Or it could be that the land in question is for agricultural use only.

Environmental Issues

It is vital that you assess the risk of environmental issues such as flooding or nearby industrial activity. If the area is close to the coast or to a river, it could be prone to flooding at certain times of the year. Nearby industrial facilities could also be an issue, particularly if they deal with things like raw sewage or fossil fuels.

Conclusion

Buying land for a self-build can be very exciting, and finding the perfect plot on which to build often seems like a dream come true. But before you build though you should take a little time to make sure that the land is suitable for residential development. All too often people get carried away with the dream of building their own home and rush to buy a worthless piece of land that will never be fit for purpose.

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