Looking to purchase a plot of land? Whether you’re buying land for personal use or as an investment, there are a few important things to consider. Below are some of the biggest considerations worth making.
What is your budget?
You should start by considering just how much land you can afford. You may have savings or you may be planning to take out a land loan. Most people rely on a land loan, which is much like a mortgage – there will likely be a down payment that you need to pay upfront for this.
There are many sites that you can use to buy land, which contain plot listings. Shop around to find plots of land within your budget.
If you’re planning to develop the land straight away, make sure to factor development costs into your budget. This could include the cost of clearing the land, the cost of designing any buildings on it and the cost of constructing these buildings.
What location is right for you?
The plot of land needs to be in the right location to meet your needs. If you’re buying land to build a home, then it needs to be a location that you’re willing to live in. If it’s for investment purposes, you need to consider who your end customer will be – if you’re renting out the land for events, you’ll need to make sure that it’s an attractive space for event organizers.
Ideally, you want somewhere accessible. If the plot of land is too remote, it could cost more to transport supplies and equipment there. It could also cost a lot of money to install mains plumbing or electrics (although you may be able to rely on off-grid systems).
Do your research to make sure that there are no hidden problems with the location such as flooding or pollution. This could ultimately affect your development plans, which leads onto the next important consideration.
How will you put your land to use?
When choosing the best plot of land, you need to consider your purpose. Some plots of land will be better suited for building a home on. Others may be better suited to farming (the condition of the soil may even affect exactly what crops you can grow).
It’s important research into planning permission to see what developmental rights you have. Some land may not be legal to build upon due to being protected. In other cases, you may be able to build property, but there may be various restrictions as to what you build and what parts of the land you build on.
Consider the fact that neighbours may also protest certain developmental plans. This is particularly the case in heavily populated urban areas, however it could even be an issue in more rural areas.
How much land do you need?
You should also consider how many acres you will need. More acres will typically mean a higher price tag. However, in some cases, you may need a lot of acres to carry out your purpose.
It’s worth researching exactly where the borders of your land are so that there’s no confusion. Make sure there is a clear diagram that outlines this and don’t be afraid to ask about fences, footpaths or trees on the perimeter to see if this falls within your land.
