WHAT TO KNOW WHEN BUYING LAND

Written By Jennifer Wilson

Is buying land a good idea? In most cases the answer is yes. Some like to purchase land as an investment. Here are a few tips to think about when purchasing land as an investment.

  1. The loan process can be tricky. Most lenders require at least a 20-50% Downpayment and higher interest rates for raw land.
  2. Be knowledgeable when looking for land or hire a Realtor who is. Visit the property. Get the proper tests done like soil drainage and topo survey.
  3. Figure out what you can do with the land. Can you divide it and resell it to developers. Can you develop and use it at a later date. Or is it better to leave it untouched and resell it when values rise.
  4. Factor in taxes.
  5. Look for Easements on your property.
  6. Expect additional expenses that may be needed to maintain the property

If you are looking to purchase land for your personal use, here are a few additional tips you will want to consider.

  1. Is the land buildable
  2. Are there currently any utilities at or near the property.
  3. How accessible is the property
  4. What is the property zoned for. Does it match what you intend to use it for.
  5. If there are trees to be cleared, do those trees have any value

Buying land can be complicated and sometimes a very slow process. Depending on where you want to purchase and what you want to use the land for, it make take awhile to find the correct property. Consider hiring an experienced Realtor who has extensive knowledge in helping their clients purchase land.

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