4 Key Factors to Consider When Buying a Piece of Land

by Jeremy

The land is one of the valuable assets due to its finiteness. Humans don’t just live on it. They also carry out economic activities on it.

This, coupled with the increasing population globally, land everywhere keeps increasing in value, attracting an upsurge in demand.

Since land appreciates constantly, most people consider it one of the best investments. Because of this fact, it is easier to make costly mistakes. This is why it is imperative to consider the following factors when buying any available land in southeast Melbourne:

4 Key Factors to Consider When Buying a Piece of Land

Zoning Restrictions

Before buying a piece of land, research zoning restrictions for the surrounding area and your property. Councils usually have strict regulations concerning what land can be used for.

If the land next door may develop into a six-story apartment building or a warehouse, it may not be a good option for a retreat away from home.

You might as well want to ensure there are no plans of building a highway or any other infrastructure through the nearby area or your land.

Fair Market Value

Getting land with a fair value is not simple, especially when you are not versed in real estate deals. Every piece of land has value. But to get land with a fair value, you must ensure you compare different properties with the same value or enlist the services of a realtor.

If the land isn’t flat, consider preparing a simple analysis of what it may cost to design it before you build and subtract the price from the total cost when bargaining. Though if the property is well-fenced, zoned, and documented, the land’s value may not be cheap.

Your Budget

Purchasing a piece of land can be expensive, based on the property’s location. You have to count the costs before acquiring a new piece of land.

For instance, there could be extra expenses, which may come even after buying the land. This may include agency fees, certificate of occupancy fees, survey plan fees, and legal fees, to name a few.

Afterward, you may need to erect a strong fence to safeguard and secure your property. All these expenses come with the buying of new land. And that is why it will be best to draft your budget and let your financial capability guide you.

Available Utilities

One of the important aspects to look at when buying new land is the availability of utilities, like electricity and water. In some places, the seller might have already installed those utilities.

You may also add them yourself at a cost. Since many individuals purchase land to build on, this information in your mind may ensure you include some of those costs in the budget for proper planning.

The Takeaway!

Buying a new land might initially feel a little unfamiliar and take you out of your comfort zone. However, your research and considering some of these factors will go a long way to making the right buying decision.

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