When you are about to purchase a piece of land, it is important to ensure that you go for the best deal at all times. Then you can ensure that you are receiving maximum returns out of your investment. Here are 20 important factors that you need to be mindful of as you spend your money to buy land.
1. Have time to do your research
You will need to have enough time to do your research before you buy a piece of land. Then you will be able to understand all the options available out there to consider before you commit to making a purchase. During the time you spend on research, you should focus on the accessibility, zoning restrictions, and numerous other expenses that you will have to deal with in the long run.
2. Learn more details about the location
Secondly, you should learn more details about the location of your land. This is one of the most important factors that would contribute to your purchase. You will need to make sure that you are buying a piece of land that is in the right location. Otherwise, you will not be able to get maximum returns out of your investment in the long run.
3. Orientation of land
You are purchasing the piece of land with a purpose. Hence, it is important to be mindful of orientation as well. For example, if you want to construct a home in the land you bought, you will come across the need to reduce the impact that you have to face from direct sunlight. Moreover, you will also come across the need to refrain from encountering the greenhouse effect. This will help you to stay away from encountering overheating problems in the summer.
4. Quality of soil
Depending on the purpose of using the land, the quality of soil will play a major role. Therefore, it is important for you to keep your eyes open and learn more about the quality of the soil before you buy the piece of land. For example, if you are trying to construct a property in your land, you should ensure that you have appropriate soil that ensures the stability of it. Otherwise, you will have to spend a lot of money unnecessarily to prepare the soil. By doing a simple soil test with the help of an expert company, you will be able to get a better understanding of the quality of the soil.
5. Understand zoning restrictions
Zoning restrictions are the restrictions that are implemented by the government. These restrictions clearly define how you will be able to use the piece of land for your purposes. It is important to adhere to zoning restrictions as you spend your money in purchasing a property. Otherwise, you will have to deal with numerous challenges in the long run. You will be able to discuss with your real estate agent or the property owner and learn more about zoning restrictions. Or else, it is even possible for you to do your own research on the internet and learn more about it. Make sure that you adhere to the zoning restrictions at all times before you purchase the property.
6. Focus on the future zoning restrictions as well
There can be changes to the zoning restrictions in the future. For example, the municipality can come up with the decision to change all rules that are related to the power lines. You should be mindful of the potential of such changes is taking place. By having a chat with a real estate lawyer in the area where you are going to buy property, you will be able to have a better understanding of this. Or else, you can also search the pattern on how zoning restrictions in the area have changed in the past and get a better understanding of what changes that you will have to expect in the future.
7. Size of the land
The size of the land you purchase would determine how you will be able to use it. You should have a better understanding of the purpose of buying land before you make a commitment. This will help you to understand that you are purchasing a piece of land that matches your preferences. In other words, you will have enough space to go ahead with your project. For example, if you are going to buy a piece of land with the objective of having a medium homestead farm, you should ensure that it is at least 10 acres in size. Likewise, you should analyze all the requirements that you have with the size of the land and make an informed decision to buy.
8. Don’t ignore government taxes
There are numerous government taxes that you will have to spend as you purchase a piece of land. For example, you will have to deal with transfer duty, which is also known as stamp duty. Likewise, you will also have to pay land tax. This will be the amount of money that you should be paying for the government for being the owner of the property. The exact amount that you have to pay in the form of government taxes would vary depending on the location and the price of land. That’s why you should understand the exact figures and take them as a part of your calculation when determining the return out of the investment.
9. Analyze the market trends
By analyzing market trends before you purchase a property, you will be able to make a better decision about buying it. This is because you will be able to uncover numerous useful insights by conducting an analysis. For example, you can see how the price associated with the properties in the region have varied along with time.
10. Be mindful about the amount that you are going to invest
As you look for a property to buy, you should always have a clear understanding of the amount of money that you are going to invest as well. Purchasing land can be a great long term investment. However, you should make sure that you stick to a budget and go for it. Then you can refrain from spending more money than you should. This will eventually assist you to get the return out of your investment according to the way you planned.
11. Take a look at your income and savings
If you have plans to get a mortgage, you will need to take a look at your income and savings as well. In case if you fail to continue with making the payments, you might have to deal with numerous challenges. Hence, it is important to focus on this fact and try your best to refrain from encountering such challenges in the future. You should also take a look at the time that would be taken for you to cover up the investment you make.
12. Save some money without spending all your savings
Some people tend to spend all their savings on the purchase of land. When you come across a financial emergency, you will have to deal with numerous challenges. This is why you should keep some money with you, instead of spending all your savings on the property. This will also help you to ensure that you get an appropriate return out of your investment.
13. Don’t ignore the hidden expenses
We often see how numerous hidden expenses are associated with the transaction you do to purchase a piece of land. It is important to be mindful of these hidden expenses and keep yourself ready to deal with them. Then you will be able to stay away from encountering any surprises. That’s because you are aware of the hidden expenses and you are in a position to pay those expenses as they arise.
14. Focus on the cost of maintenance
After purchasing land, you will not usually have to deal with a lot of maintenance expenses. However, this can vary based on numerous factors. For example, there are certain situations where you will have to keep on spending your money on maintenance expenses. If there is a building at the property you buy, you will have to deal with more maintenance expenses. Likewise, you should be mindful of all the expenses that you will have to bear and get ready for them. If you are not ready, you should not commit to purchasing the land.
15. Always keep the future plan in mind
You will need to keep your future plan in mind as you spend your money to buy new land. There are numerous reasons why people invest their money to buy a piece of land. These reasons are based upon the future plans. Likewise, you will also have plans in your mind. You should take a look at the long term experience that you can have with your land and ensure that you are in a position to get all the future goals catered with it, without encountering any challenges.
16. Price of land
You will obviously have to take a look at the price of land that you are about to buy. You should never agree to the price at the very first instance. Instead, you can take your time and do research about the prices of similar land in the neighborhood. This will help you to get a better understanding of the market price. While keeping the market price in mind, you can do some negotiations with the real estate investor or the property owner. Then you will be able to secure the best possible deal.
17. Access to the roads
If the land you buy doesn’t provide convenient access to the roads, you will have to deal with numerous challenges. Hence, you should make sure that you don’t face any such inconveniences as well. The land you purchase should always provide convenient access to the roads. Then you will be able to go ahead with your development work accordingly. This would even be a major factor that comes into play when you are about to sell your property in the future. If there are no roads, you will have to sell it at a much lower price.
18. Take a look at the drainage
If you are planning to use the land for building house rentals, agricultural purposes, or for any other reason, you will need to be mindful of drainage. This is where you should focus more on the water and sewer issues. That’s because we often see people struggling with these issues. You can also get in touch with a health inspector and get the assistance to conduct a perc test. This will help you to understand the rate of drainage. This will help you to figure out how to get an appropriate septic system to your land as well.
19. Analyze the climate
You will also need to take a look at the climate. In other words, you should be focusing on the temperature changes throughout the year, seasonal changes, and the yearly rainfall. That’s because the climate of the environment is going to create a major impact on the way how you are going to use the piece of land. For example, if you are going to use the land for agricultural purposes, the climate will create an impact on the crops that you grow.
20. Due diligence
Last but not least, you should focus on due diligence. You should never avoid this as you purchase land because it would be equivalent to committing a crime. You will need to conduct due diligence before you purchase land. This will help you to get a better overall understanding of the authenticity associated with your property.
These are 20 of the most important things to be mindful of as you purchase a property. Always keep your eyes open on these factors and go ahead with making the right investment as you buy a land.