Finding houses or apartments for sale near me that have been put up for resale may not always be the best way to go. One’s preference may be to buy a new property in the locality of one’s choice may be unaffordable. Also, the older the house, there may be problems in the house that will require investments for repair work. However, the processes are very different, whether you plan to buy a teardown and build a home or buy an apartment in new housing development.
When you buy a house, you buy the land, whereas, with an apartment, you share the land ownership with other apartment owners. Also, by investing in the piece of land, one has greater flexibility to design their own house and see it built as they envisioned it. There are many things to consider while buying land – location, size, utility convenience, zoning, permits, etc.
Here are 5 Points on Buying land for investment
Are you searching for land for sale in the city, suburbs, a good school district, or farmland? This will play a crucial role in determining all other factors related to prices, regulatory requirements, and types of loans and rebates you can expect, among other things. Purchasing land and then constructing a house on it, or buying a rundown home, then demolishing it and rebuilding a place in its stead are both heavy investments. Thus, the location must be sought, keeping in mind that this is a long-term investment. You must align the site you select with your lifestyle choices – city, suburbs, or country. Are you okay with the commute, or are you planning to build the house as a retirement house?
However, before finalizing the land, one must know their finances. What is your credit score? How much down payment can you make? How much loan are you eligible for? Will you be able to make the monthly EMIs?
Furthermore, when planning for land purchase, one must even plan what portion of the budget will be allotted towards construction. When budgeting for land purchase and house construction, it is essential to balance both values. A good land-value to home-value ratio maximizes the importance of both. The rule of thumb is that the land should cost between 20 to 30 percent of the finished home value, though this can vary where the situation demands.
How much land do you need?
How many acres of land you buy depends on whether you are looking at a low-maintenance property or want plenty of space and privacy. You can plant trees and bushes for privacy, even on one or two-acre properties. If you want to be part of an active social circle, interact with neighbors, or live close to the urban centers, then you can think about land for sale in the city or suburbs. When deciding how much ground you must purchase to build your house, factor in the number of rooms, number of residents, the size of the house, outdoor amenities, and other aspects of the home you are planning. Accordingly, you can plan land purchases per the house you are planning to build.
Zoning Laws and Deed restriction
The local zoning laws determine how you can use a piece of land. The land is zoned as residential, industrial, commercial, or otherwise. The zoning ordinance enumerates the rights and restrictions on aspects. Such as the size and location of the various buildings on the property. Studying how the land has been zoned before purchasing it is essential because getting a piece of land rezoned is very tough and probably impossible.
Deed restrictions are another set of restrictions on land use. They apply limits to aspects such as house design, placement, number of permissible trees on the property, type of animals one can keep, and number or type of vehicles one can park in the driveway, among other things. Deed restrictions have vast implications on arbitrary matters, such as the color of the door to your house. Their larger purpose is to ensure that the aesthetics of the locality are maintained, the drainage and water systems are not overwhelmed, and the locale is kept beautiful. Understand the deed restrictions of the locality before purchasing property there.
Where to search?
The regional realtors are the best resource persons for anything from apartments for sale near me to buying farmland on the outskirts of the city. One can browse online on the real estate agent’s website, where there are alternatives to add advanced filters to choose one’s preferred location, budget range, and similar aspects.
Opting for regional real estate agent’s services will help speed the process and understand the legal requirements.