Trading and/or investing in land can at times be a daunting task. When you begin your initial investment, you’ll start to see that there are quite a few steps involved and procedures that need to be adhered to. However, even though purchasing land on its own may not supply the ease or instant gratification of purchasing a home outright, land investments can indeed be quite lucrative. In the past, land has appreciated in value every single year and continues to be a really great way to subsidize your income. To get started however, you need to know a few basic principles when it comes to choosing the right investment.
Beginning Your Search
Once you’ve decided to invest in a plot of land, there are several different outlets you can use to narrow down your search. Many people’s first choice is to consult with a real estate professional. By doing so, you can communicate exactly what you’re looking for and pay a commission to the agent to do all of the heavy lifting for you. Although this may be a viable option to most, in some cases this can be a costly endeavour and will really depend on the type of market you are exploring. Another option is to carry out the search yourself by exploring the vast amount of online resources available to land buyers. By searching online for your land investment ahead of time, you can create a “shopping list” so-to-speak of potential properties that meet your criteria and would be worth while visiting.
Choosing The Right Location
Location may be one of the most important decisions when it comes to building or buying a home, as it is the only real factor that can’t be transformed. Location determines not just the way the property may be used (zoning) and ease of access to public utilities, but it also determines the overall value in line with the surrounding areas. There’s no replacement for a great location, so when you research a potential investment, be sure to spend some time in the area and take note of its proximity to local markets, schools, public transportation and popular landmarks. This will give you an idea of value and saleability of your property.
Understanding Zoning Laws
When you invest in land ownership, it’s important to know that not every property has the same building restrictions. Understanding the zoning laws and regulations of each town or city your property is located in, will ensure you are able to make use of the land the way you want. If you are set on purchasing land in a specific area, make sure you contact your local government or municipal sectors in order to ensure you don’t start a building project that goes against any local laws or building codes.
Check The Cost Of Utilities
Business professionals that purchase land for a living, including contractors, land developers and designers, understand the ins and outs of building homes. In large developments, most builders will be able to bring in utilities like natural gas, standard electrical and water hookups. However, when you invest in certain properties, you may need to ensure the availability of these utilities ahead of time. For example, many land plots will require you to incur the costs of drilling wells for water sources and installing septic systems for sewage. These costs are usually standard when investing in property, but it’s always good to know them ahead of time to ensure you stay within budget.
Making The Sale
After all other considerations are made, the final factor is to secure your investment while staying within your budget. Although its true that land availability can be here one day and gone the next, you should never feel rushed into purchasing. That being said, once you’ve decided on a property you know you love, you shouldn’t be afraid to make an offer either. Set yourself a budget and stick to it. Some people feel pressured into accepting the asking price of a property, but if you find a property within your range, it doesn’t hurt to make an offer at the lower end of your budget. From there, you can increase your offer up to your maximum allowance. By doing so will ensure you get the best value for your purchase, and give you the financial room you need to build on your land investment.
Nigel Walters is a great blogger who likes to focus his articles on investment, stocks and the property market. He has written for a huge amount of online magazines such as Innovo investment. In his spare time he enjoys meeting his friends and discussing investments and stocks.
