It may seem risky to buy land in Canada, given the present economic situation and flat property prices. On the other hand, for a smart investor who wants to redevelop, or even build new, buying suitable land can be a good investment. Here are some tips for buying land in Canada.
Understand your needs.
- Land can be bought for various reasons, and many see it as an alternative method of investment. Often this is safe in the long and medium term, compared to the volatile property market.
- Empty nesters who are secure may want to buy land for building a house according to their requirements. Some buy land for gifting and developers are always interested in land to build homes or apartments to make fast profit. The purpose can be different but land is required by all. The basic for a successful land deal is proper research to diminish the risk.
Four questions to ask yourself.
- Intention – why do you need land?
- Use – is the land suitable for your needs?
- Cost – is the land within your budget including building, survey and legal costs, along with contingency?
- Resale – can you sell the land for a profit?
The exact cost of land for sale is based on several factors including size, location, closeness to transport links and planning permission advantages. You will always have to pay more for land that comes with planning permission. Land value is relative to the present situation of the property market, which makes the current cost are more competitive as compared to a year back. According to Strutt & Parker, land experts value of the rural Greenfield land has doubled over 2006-08, jumping the general downturn trend.
Find the suitable plot
Typically land for sale is categorized as either Brownfield or Greenfield.
Brownfield is a plot that was or is occupied by a permanent construction and is empty with a potential for redevelopment.
Greenfield is undeveloped land including countryside, parks and forests.
The first thing to do when looking for land is to get in touch with a real estate or land agent. They are just one of the options as you can also look around and inquire from local developers about plots on sale. Present day, the property market is seeing significantly weaker sales as compared to the year before. Several small developers who are over-committed with projects, and not able to complete them, are finding buyers to offload land at cut throat prices. You can even check online for great land deals.