If you are interested in purchasing development land for sale there are several considerations you want to take into account before investing. Of course development land can be highly lucrative, but you wouldn’t be the first person to buy land that they later find can’t be developed and lose a lot of money because of that.
Choosing Development Land For Sale
Using online land agents you now have a lot more choice when it comes to selecting development land. You can choose land in most US states and even see aerial photos and plans for the land before visiting them so you can whittle down your choices first.
Bear in mind it is inadvisable to buy land without having seen it first. And that you should also consider the surrounding as well. The infrastructure around the land including vicinity of conveniences such as supermarkets, town centers, doctors, dentists and hardware stores can greatly affect whether the housing you develop will actually be in demand on completion. Considering the surrounding land usage will also give you a first impression of what will likely be allowed to be developed on your piece of land. If you land is in an arable area surrounded by farms and ranches it’s highly unlikely you’d be given permission for a factory, or housing estate. Whereas a suburban location with good facilities and road access will likely be surrounded by other housing estates and retail outlets, therefore it would indicate the local planning offices will sign off your plans.
Its true in life with most things that if something seems like its too good to be true, then it probably is. If someone is selling a piece of land very cheap and say that it will likely getting planning permissions for x, Y and Z then don’t take their word for it. If it really could get planning permission for development easily they would have done it themselves or they would be advised by their agent to sell at a much higher price.
When calculating what you can afford to buy for the development land its worth considering not only the building costs but also factoring in planning and development time, and use of professionals such as planner, architects and lawyers to get you the approvals you need to commence building. Also take into consideration whether the land already has utilities such as phone, electricity and water supplies. If it doesn’t then your local utility companies may charge you to connect to the grid. Some may not as they may be willing to invest in connection due to the potential income from residential or commercial usage, but if your land is remote or planning isn’t completed the utility companies may want some investment from you as well.
While lucrative, land development can be time consuming and frustrating dealing with planning permissions so why not also look for land that already has planning permissions in place, this could save you a lot of time and money at the outset.
To read more on topics like this, check out the budget category
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