If you are thinking of making a land investment, for building a home or for business; it is very important that you study as much about it, as possible, before you buy it. Its value has a reputation of appreciating over the years. So, buying land is almost always profitable. However, the rate at which the value appreciates, is totally dependent on the rate of development around the area. So, make sure that you choose it smartly.
Tips on Buying Land
Land remains the most sought after asset in the world. All things can be manufactured, but land can’t. It is the most sound investment to make. It is a more secure investment than stocks or bonds. However, investing in terra firma can be quite a tricky business. There are many issues to deal with and many things to watch out for. It can be a complicated business and one needs to carry out the whole business very carefully. Here are some tips, for those who came in late, in search of their promised land.
Location, Location, Location
When it comes to buying land, there are three important things to think about, which are location, location, and location. Yes, location matters. First of all, if you are clear about what purpose you are buying it for, your search is simpler. It helps when you know exactly what you want. See that you have electrical connections around your land so that you can get one easily, when you go into the construction phase. Water supply is another thing to look out for.
If water ain’t there, not much is going to grow there and life will be difficult. Ensure that your land is easily accessible by road. This is very important, as otherwise, transporting building material during construction becomes difficult. Also, it’s good to choose land, that is close to your place of residence. Otherwise, commuting will consume a major part of your time. Be ready for a lot of travel, to choose your promised land. Start with real estate advertisements in papers or approach real estate agents.
Check Topography and Surface Features
Check the topography of the land carefully. Avoid marshes and lowlands, as they are difficult to build upon. Hill slopes are also tough terrains to build upon. If you intend to buy it for agricultural purposes or otherwise, it is a good practice to get the soil type and quality checked.
Check if the land has an underground base of bedrock, that can hold water. If the bedrock’s there, possibilities of finding water underground are greater and may solve your water needs, in times of scarcity. If you are buying it for residential purposes, you must think from a landscaping point of view and evaluate it accordingly.
Ensure Title Clearance
Ensure that the land title is clear and there are no legal problems associated with it. Get the legal papers checked for authenticity. Many adventurers who were careless, have been conned by false papers and duped out of their life’s earnings. Take legal advice and professional help in making your purchase agreement.
Research market prices in the area before going into a deal and agreeing on a price. Get a real estate appraisal. This way, you can ensure that you are paying a reasonable price. It is better to pay for the land in cash directly, instead of going for real estate loans. Loans can be very costly and can put a lot of financial burden. Saving money and buying your land within that budget, is a better option.
Land dealings are never simple. Rounds of negotiations and bargaining go on for days, before a price is agreed upon. The process can be even more complicated, when estate agents are involved in the process. Be patient and persistent. Ensure that everything about the deal is carried out through proper legal channels and consult a real estate attorney.