There is a lot to think about when buying a plot of land. This can lead many people to make costly mistakes. Before you just jump head first, you should take a few things into consideration first. Below are just some of the big blunders to avoid when buying a plot of land.
Considerations Before Buying a Plot of Land
Taking out an expensive land loan
If you do not have money when buying a plot of land in cash, you will have to take out a land loan. Land loans work in a similar way to mortgages – you put down a down payment and then pay them off in installments with interest. It is important to shop around for land loans so that you get the best deal. Some will have very high interest rates, which could result in you paying off your loan for a longer period. Mortgage brokers may be able to help you find the best deal.
Choosing the wrong size/shape of land
Land comes in all shapes and sizes. It is important that any land you buy is the right shape and size for your needs – you do not want to realize afterwards that your land is too small for your needs or too awkwardly-shaped. Taking a look at a map will help you to get a clear idea of where the boundaries are. If measurements are not provided, you will also want to measure the land to get a good idea of the dimensions.
Some plots of rural land can be very remote. If you’re building a home, you need to be sure that it is not too far away from civilization. At the very least, there should be a road connected to the land. Consider whether the main water connectivity and the main electricity are also important (if you are planning on living off-grid, this may not matter so much when buying a plot of land).
Not checking zoning restrictions
Zoning restrictions will dictate exactly how you can use your land. These are always worth looking into – you do not want to be buying a plot of land only to find out that you legally cannot build on it or legally cannot farm on it. You can find out about these restrictions by contacting your local zoning board. Finding out this information is usually necessary anyway when applying for a land loan.
Failing to maintain your land
A lot of people make the mistake of buying a large plot of land which they cannot maintain. Make sure that you have the resources to maintain it so that it does not become overgrown. There are services that you can pay for such as brush clearing. This could save you time compared to doing it yourself.
Not researching into local hazards
Be wary of suspiciously cheap land – there could be hidden hazards ranging from flooding to sinkholes. A land surveyor will be able to inform you on any risks. Insuring your land against disasters may be possible, however in high-risk areas it could be very hard to find an insurer willing to approve you.
By taking these things into consideration before buying a plot of land you can save your self from making some very costly mistakes. Choose carefully and take your time to choose the best possible plot of land for your family.
Do you have any suggestions for ways to avoid costly mistakes when buying a plot of land? Feel free to leave your suggestions in the comments box below so you can help others to make the correct choice for their family.