Land can be an excellent investment and the first step toward building your dream home. Moreover, when you own land, you can pass it on from generation to generation – making it one of the best investments you can make. Purchasing land is a significant financial investment that should not be handled lightly. Without research, a thorough checklist and due diligence, a plot of land can turn into a money pit, a labyrinth of paperwork and legal fees. We’ve all heard of buyer’s remorse, so here is a checklist for evaluating land to purchase in Tanzania.
What is a plot of land?
In real estate, a lot or plot is a tract or parcel of land owned or meant to be owned by some owner. In certain countries, a plot is considered real property, whereas, in others, it is considered immovable property. If you’re a first-time land buyer, the process of buying the right plot can be quite a daunting task. As such, we have put together these tips on what to consider when looking for land.
A checklist for evaluating land to purchase in Tanzania
Be clear about why you are buying the land
Perhaps you see land as a better investment than stocks and shares or other assets. Perhaps you want a site to build your own home, or perhaps you want to become a smallholder. You certainly need to have a long-term plan for the plot because it will determine what and where to buy.
Know the different types of land on the market
Land which has never been developed is different from land which has been built over previously. They are distinct markets and, in some respects, subject to different planning requirements.
Research the market
The value of land varies greatly based on its size, location, and quality. With this in mind, spend time researching the market. You’ll need to get a sense of the market and what you can afford to pay for your piece of land. There is usually plenty of land on offer at any one time, albeit not all of it is advertised publicly. If you’re willing to move swiftly, land auctions are another alternative.
Have the right people by your side
With land purchases, there may be hidden issues ranging from boundaries and rights of way to flood dangers and overhead electricity lines. When surveying a piece of land, there are numerous variables to consider. As such, it’s a good idea to have the correct specialists on hand to assist you with each component of the examination.
Check the potential growth of that area
The “location, location, location” mantra applies to land as much as to properties. Keep an eye out for areas due to benefit from improved infrastructure such as transport links. If you’re not familiar with the area where you’re looking, spend some time getting to know it to determine if it meets your criteria.
Construction requirements
For most people, the whole purpose of buying land is to build property. Be wary of restrictive covenants or other legal restrictions on your freedom of manoeuvre. In summary, planning difficulties are so intertwined with your decision to purchase the land that you must hire a solicitor who specializes in this field.
Final thoughts
Buying land will probably feel a bit unfamiliar at first and may take you out of your comfort zone. But do your homework, do not lose heart and you will find the perfect piece of land.
