When it comes to real estate, you’ve always got a wealth of options. Whether you’re looking to make a purchase for yourself privately, or you’re looking to do it as a business venture, you’re always going to want to make sure that you spend carefully. Property can come with a high price tag - but land can be even more expensive. While both have their pros and cons, we’re going to be focusing entirely on buying land in this post. Because right now, if you can get your hands on a great plot of land, it will feel like you’ve struck gold! Prime real estate can be exciting, but it’s often better to be able to put your own stamp on things, or to build from the ground up to enjoy healthier margins. And this is why land is always a hot topic.
But at the same time, no matter how lucrative land can be, it can be risky too. You really need to be sure that you know what you’re doing when you’re buying land. Maybe this is something that you’ve always wanted to do? Maybe you’ve always loved the idea of building your own home? Or maybe you’ve already got a property portfolio and now you’re interested in investing in land to keep on building it? Either way, here are some of the key considerations to keep in mind.
1. The Location
Number one - you need to make sure that you’re thinking about the location. And this works in two ways. First of all, you’ll want to think about the location that you want to buy in. Then you can start to see what’s available. But on the flipside, if you’re searching for available land, then you need to do some research on the area that it’s in. You’ll want to make sure that you’re investing in somewhere that’s got potential to give you a good return.
2. The Surroundings
But that’s not all - the surroundings matter too. You’ll want to ensure that you’re considering the local amenities, because having certain things near to the land will make it more valuable (not only cost wise for you to buy - but also for resale when your project is complete). But also make sure that you check out anything negative, like works that are going on, land issues, or troublesome neighborhoods.
3. The Environment
Also, think about the environment that it’s in too. Here, we’re thinking more in terms of the countryside. Is there weather issues or problems with the local area? When the land is at a great price, you’ll really want to make sure that there’s nothing like flooding that could become a problem.
4. The Potential Return
Your next thing to be thinking about is the return that you could get. And, of course, this is definitely more applicable when we’re talking about investing, rather than just for personal use. But you need to think about what the land is costing you, what the cost of renovation work will be, and then work out what kind of return you’re going to get.
5. The Potential To Build
From here, you do then have to be relatively sure that you’re going to be able to build on the land. Sometimes, the land will be sold with the permission - and this can make it more appealing (but also more expensive). If no permits are currently present, then you could be taking more of a risk. If the land is in a city where other developments are taking place, then that could be a good indication that things will be okay.
6. The Cost
Then, of course, you’ve then also got the cost of the land to consider too. Sometimes, you can be looking at a lot to pay up front. Just take a look at the land values by state to see what you could be up against. While NYC is bound to be more pricey, you could find something more favorable by just comparing boroughs or up-state options.
7. Your Goals
Finally, you also need to make sure that you’re keeping your overall goals in mind at all times. If you’re doing this to make a profit, then don’t take things to a personal level. Because when you start to become too personally invested in a project, you can overspend and lose sight of what you’re trying to do. But if it’s your home, then don’t be afraid to invest. After all, you want to enjoy the space, and trying to cut costs to make a profit isn’t what you should be focusing on here.
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