Buying a new property, be it a house, building, or piece of land, can be quite hectic if you don’t approach it in the right way. There are many cases of people investing a lot of money in such property, only to realize shortly afterward that they made the wrong choice. Also, others lose their hard-earned by dealing with shady characters.
For these reasons, you have to do some research of your own concerning what’s required of you before you buy any property. And on this account, you’ll find this article helpful as it highlights five key factors to consider before purchasing your next property.
- Costs Involved
When buying land to build on, you should expect to spend on additional items, such as insurance policies, related taxes, survey costs, and so forth. These can set you back a large sum of money, especially if you don’t plan and carefully budget for them. For this reason, you should make an accurate calculation of the total expenses and then come up with a solid financial plan to allocate the funds efficiently.
Don’t forget to factor in the costs of building your home on the newly purchased property. If you’re wondering how to go about the process, you can use reliable online cost calculators, like one from Boutique Home Plans and other reputable websites. These calculators are designed to perform calculations for the costs you’ll incur when building your home. All you’re required to do is feed it with basic information such as the size of the house you plan on building, and it’ll use this information to calculate the expected costs accurately.
- Legal Considerations
Before being granted ownership of a land parcel to build on, you have to go through all the required legal channels and obtain the necessary documents. Among them include:
- Title deed
- House plan approval
- Land use certificate
- Encumbrance certificate
- Commencement certificate
Additionally, you’ll require building permits for all the structures you intend to set up. These permits have an underlying framework of standards set by the government, which ensure that you construct robust structures.
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Therefore, prepare yourself for plenty of paperwork. However, this shouldn’t deter you from the buying process as in the long run, the documents ensure you make a legitimate investment. You may contact a credible realtor to guide you through the documentation process.
Before you buy that land parcel, take its location into account. Research on factors such as:
- Neighborhood: Don’t only focus on the land, but also on the surrounding community. Look at who your future neighbors will be and choose the land whose social environment you’ll comfortably fit in.
- Security: You don’t want to end up living in an insecure environment. Therefore, consider the safety and crime rates of the area.
- Centrality: Unless you intend to stay in a remote countryside, you should buy a property close to a town or other critical amenities and infrastructure, such as schools, hospitals, roads, electric power grids, water distribution systems, and more.
- Zoning Restrictions
Zoning laws are the by-laws that classify an area as either commercial or residential. For your home, you’ll need a piece of land in a residential area. You can go through zoning records for your piece of land, which you may find online or from the zoning office of the area you want to construct in.
Additionally, research on the area’s long-term land-use plans, especially future road construction. This is important as you may build a house on the land and after some time, the government builds a busy highway right next to your house. Therefore, save yourself all this inconvenience by going through the zoning guidelines.
The size of the land will affect the scope of your projects and the plans you may have for future land development. If you want to set up a mansion, you’ll go for a bigger size of land than if you want to build a bungalow. If you plan on rearing a horse or two, the land size will also determine whether you can have outbuildings, like a barn. And if a swimming pool is on your list of wants, you should consider enough land space for the project.
Buying a property to build a residential house is one of the most significant investments you can make. As the property owner, you’ll be in charge of your assets and this will give you a sense of liberation. To be successful in your purchase, you need to consider a few factors, such as the cost of building, legal considerations, zoning restrictions, land size, and location. Getting all these into perspective ensures that your newly acquired property meets the needs you’ve been dreaming of for a long time.
Shella Havier is a real estate specialist. She’s been in the industry for 10 years. She conducts webinars to share her expertise. Shella enjoys reading books and drinking coffee during her free time.