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VWB Blog > Home Improvement > Buying Land: What You Need to Know
Home Improvement

Buying Land: What You Need to Know

VWB Blog
Last updated: May 11, 2020 10:24 am
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It is a common piece of advice that people should invest in land. That is understandable considering how land increases in value over time. But not all property purchases are equal. Some increase in value slower or might even have problems.   If you want to ensure that you are not wasting money, here are some tips on making the right deal:

Buy at the Right Place

All real estate purchases depend on location. You might be able to buy acres of land for cheap but the land might be useless if it is in the middle of nowhere. The first thing you should check for is access to the property. If there are major roads right beside it, then your property might be worth something when development is done.

The problem would be if there was no easy way to reach the property. You might have to build your road. Another concern would be the zoning laws in the area. Some local governments restrict what sort of buildings can be built on a particular property. You might have to look into it before finalizing the purchase.

Be Aware of the Additional Costs

You will be paying for the land but you also have to be aware of the additional costs of buying land. If you only have cash ready for the purchase, you might not be ready for the added expenses. Preparing a bit more will ensure the deal goes through more easily.

Being aware of these costs will allow you to prepare for them and add them to your calculations when buying. Some of these costs include buying title insurance to protect your investment and to work with a reputable land surveyor for the property you bought.

Have Some Patience and the Funds

When buying land, you should look at the long term. It will take years before you see a good return on your land investment. Selling quickly, you will end up losing 50 percent of the land’s true value. If you are looking for quick money, then you should invest in something else. To see you through, you should have money besides what you invested in the purchase. It will also help with land development.

Know the Dangers of Your Land

Owning property means you need to know the potential problems with it. There are several environmental issues you have to prepare for and the land survey would tell you about it. For example, knowing whether your property is prone to flooding would be a good idea. It lets you plan around the issue so that any developments won’t experience any damage. The situation is similar to the chances of mudslides and other natural disasters.

Get Some Help

Professional land agents provide all the assistance you might need. They can do the legwork, research, and even some of the negotiating. Find someone who has a good track record so that you know you can trust their skills.

Buying land should not be a hit-and-miss thing. Don’t put down money and hope that you get a good deal. It is always a good idea to perform due diligence before making a big purchase. Take the right steps and you can be sure that your investment won’t be a waste.

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