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Ready to Buy a Lot? Check These Tips First

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Buying land is such a huge investment. You have to dig deep into your financial resources to afford a property. You need to apply for a loan. You need to get your finances in order before being approved for that loan. But your finances are not the only thing that matters when buying land. You need to look into the actual property that you plan to invest in. You have to choose the property carefully so that your money won’t be wasted.

Location

Consider a piece of land for sale around Whittlesea. You want to first choose the location where the land is. You want this location to be two things: valuable (whether today or in the future) and close to you. There’s no point investing in a property that’s thousands of miles away from you unless you plan to move there in the future. It will be harder to maintain the property when you can’t even visit it in person.

Being Buildable

Is the property buildable? This does not only refer to the local government allowing you to construct a building on your land. It also refers to the characteristics of the land. Does it have a sloping angle? Does it have high acreage? You should also look at the amenities available to you. Is there already a plumbing system? Can you tap into a nearby electrical tower? Are the roads leading to it paved?

Restrictions

What do you plan to do with the land? If you are going to construct your dream home there, you need to look at the conditions that might put certain restrictions on your plans. For example, is the land inside a restricted subdivision? If it is, you have to comply with the rules of the property owners’ association. They are going to be very concerned with maintaining the value of the property. Some homeowners’ associations have rules for pets, the color of your home’s exterior, and the front lawn.

buying lot

Zoning

Call the local planning and zoning department once you have your eyes on a property. Zoning classifications include residential, mixed-use, industrial, commercial, and agricultural. For example, the property you want is residential. That’s fine. But what about the surrounding land? If the surrounding land is commercial, you can expect high-rise buildings to be constructed there in a few years. If it’s agricultural, a farm can start operating there anytime.

Taxes

Be wary of areas that impose high property taxes. As a general rule, the annual tax bill on your property should only be between 1% and 4% of the property’s full market value. If it exceeds that percentage, then you are paying too much.

Flood Zone

How sure are you that the property is not in a flood zone? You should check this with the broker and the local government. Properties in a flood zone are expensive to insure. Also, you don’t want to deal with flooding problems in the future. Although beachfront properties are expensive, they also face a host of risks. Make sure that you are ready for these risks if you are to invest in properties near bodies of water.

Obviously, you want to be aware of red flags in the property that you plan to buy. You should research well before you have a look around the property. Time is precious. You shouldn’t waste your time looking at properties that you will eventually discover are near flood zones or industrial areas.

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