Tips for Buying Land to Build a Home
Buying land in Canada is always an exciting and profitable investment option for investors. With land, there is always the potential to gain from long-term capital appreciation and also generate a steady flow of income through rental or development. With the kind of robustness the Canadian economy currently enjoys, coupled with the healthy state of the real estate market, any investment in land could surely be a big value proposition for the future.
However, investing in land comes with its own set of risks that investors should understand before making a purchase. Changes in zoning regulations and the presence of stringent environmental rules are two of the major considerations that buyers should weigh on before moving ahead with the transaction. In addition, investors must research the market extensively, understand all the legalities with buying a land and then commit the resources.
Working with a real estate agent is another key factor that investors must consider before buying land for sale to build a home. Assessing one’s financial situation, investment targets and risk tolerance level are some of other aspects to analyze before investing in land.
In this blog post, we will explore the many tips for investing in land to build a home.
Let’s get started then…
Research the area – Buying land is a significant real estate investment decision, and it should never be rushed. It is crucial for investors to thoroughly research the area, assess its potential, and then proceed with the buying decision. The key is to evaluate the area on different parameters, such as crime rates, transportation, growth potential, and availability of amenities. Conventional wisdom suggests that buyers should not invest in land to build their home unless the area meets their needs.
Understanding zoning laws – Knowing the zoning regulations in the area is one of the topmost priorities for investors looking to buy land in Canada. These laws exist to differentiate between residential, commercial, industrial, and other properties. Understanding the zoning laws can help investors know what types of structures they are allowed to build on the land, how big the structures can be, and where they can be located on the property. Real estate agents can be helpful in discovering the zoning laws that apply to specific areas, for example when searching for industrial land for sale.
Check for utility access – Buying land in an area with proximity to utilities is always a smart decision. If access to utilities such as water, gas, power lines, and phone lines is good, developing the land or building a home in the future could be easy. However, utility access can be a problem in remote areas where buyers often need to install their own utilities. This could make the purchase unviable from a financial point of view. In addition, investors should also check whether the land is connected to well-maintained roads, as access to utility services could be a big hassle down the line.
Review recent surveys – Conducting or reviewing recent surveys is one of the key requirements when someone buys land. With surveys, the buyer can easily know the land’s legal boundaries and easements. The survey will also give a clear picture of the land and may also reveal potential issues such as drainage problems. For buyers, it is imperative to rely on the latest surveys only that are not older than two years max. In case the recent survey is not available, the buyer can consider conducting one by hiring a professional firm and paying them according to the land size.
Know the restrictions – Buying a piece of land in Canada can come with certain restrictions and buyers should know them before making a purchase. Land in some areas may restrict owners from constructing a fence while some lands may put limitations on the number of vehicles the owner can park or the maximum height up to which a structure can be raised. Buyers should also consider the environment and its impact on the home. It’s prudent to check for any conserved wetlands or other natural features that might put some restriction on developing on the land.
Seek professional help before buying the land – Real estate agents and a lawyer are two professionals that could help a lot with land buying decisions. While an agent can help find the perfect listing and provide help through the entire process, a lawyer will add value by checking the legality of the deal. A lawyer can review contracts and check potential legal issues with the land. Both the professionals can ensure that you get the best land to realize the dream of building a home someday.
Final Thoughts
Land investment is always a smart decision that not only gives great flexibility but also promises big returns for the future. An investor can also maximize the value of land purchase if they are ready to research the market, consider all the aspects, and involve a team of experienced professionals.
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