Property Investment: Things to Consider When Buying a Vacant Lot
Buying a vacant lot is the most misunderstood and overlooked real estate investments worldwide. There are many real estate investors who do not really recognize the benefits of owning a land in raw form. Here are the important things to need to watch out for before deciding to purchase a vacant land:
1. Know the exact purpose of you buying a vacant land. It is only when you know what the land will be used for, the best benefit and value of your money’s worth. Zoning classification helps you get the best value of the land with the help of the local zoning department. Zoning classification includes commercial, industrial, agricultural, residential and mixed use.
2. Considering the topography of the vacant land you are intending to buy is crucial as this is a basis whether you can build some structures like a home or a business establishment.Check out cliffs, valleys, mountains, ravines and other unpredictable elevations in the area.
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3. Take into consideration, the annual tax associated with the property. It is fair to have a reasonable annual tax of one percent to four percent. In some instances, annual taxes are higher than the actual value of the land itself, so careful observation and research should be thoroughly done.
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4. Check availability of public utilities such as power, water, waste, gas, phone and internet service. This is for you to know if reasonable living is possible, so you can build your home in that land someday.
5. Gain knowledge and understanding regarding building setback requirements. Know and understand the exact land size or dimensions. You may consult the local zoning authority for the vacant land’s zoning information. Knowing the property restriction will also help you a lot.
6. Know the natural resource rights of the vacant land. The timber and water resources available in the land may not be directly yours. State laws and governing policies are existing for the legal use of these natural resources, and permissions or special permits are required to be able to use them.
7. It is important for you to investigate the previous uses of the land. Your dwelling plans and crop production plans may be ruined if contaminants or harmful substances are embedded on the ground as this is unhealthy for plants, water and wildlife. This poses a great danger in food production, water system, you and your family’s health and security.
8. Know the surrounding properties. Even if the actual vacant land has good features, but if the surrounding areas are not then it is just a complete disaster.
Do your extensive research and consult the right people when you are planning to buy a vacant land. For other related articles, you are invited to come and view our website.