A rule of thumb in buying a lot is to know what you are getting yourself into. A lot could be a perfect investment, but only if you have researched it. It is important that you do not get scammed by some of the pitfalls in lot investment.
Buying a lot first gives you a lot of freedom. You can build a business or home on it, or resale the lot at a higher value when it appreciates. However, some lots are not ideal to buy because of their location and the costs involved. You have plenty to know, especially the key factors, before buying a lot. Here are five things that can help you make a wise decision when choosing which lot to buy.
- Acquire Building Permits
You have to check if your location requires a building permit. It is important to acquire building permits before construction starts. A construction permit helps you protect the land and keep your building codes. It even includes electrical and plumbing works. Even though this is a complex task, these permits and paperwork guarantee that you have a solid and legal investment.
You have to check the drainage and soil quality of the land before buying them. It is no good if the land becomes swampy after heavy rain. You can detect the map out of the elevation and potential flood areas around the property. When you safely determine that the land does not go underwater, you can decide whether to pursue that piece of land.
Surveying is done to check the potential basic cost of the lot-buying process. Professional surveyors have to look your property and use a plat to determine and mark the exact boundaries of the lot you plan to buy.
If the land has been surveyed before, you have to do a new survey to have an updated definition of your property line. You have to prepare a decent amount for the cost of survey.
- Costs Involved
Everything involves money in real estate. You have to spend your time and money wisely. You have to expect what expenses may incur when buying a vacant lot. But your expenses do not stop there. You have to note that utilities and building costs are expensive.
When you invest in a property lot, you must consider its location to know if it will satisfy your purpose. If you want to start a business on that lot, choose a lot near your target audience. Meanwhile, if you want to build your home on that lot, it is best to check the amenities available around the neighborhood. It will be a shame if there are no groceries, schools, or workplaces near.
It is important to observe due diligence when buying a lot. You have to research more to ensure that building your dream home or office becomes a reality. The key factors in buying a lot are its location, drainage, road access, and zoning restrictions.