There are a lot of benefits to buying land. Buying land is usually a sound investment because the land won’t go anywhere and you can improve upon it in the future. Besides the primary rule of location, it is important to learn everything you can about a piece of land before you buy it. Aside from learning all you can on paper, go see the land, and inspect it for yourself. Keep an eye out for these red flags when buying land. You’ll want to avoid these problems!
Red flags when buying land
When you first start out looking for land to buy, you’ll most likely start online. If the land has been up for sale for a long time, the photos may no longer be accurate, and there could be other buildings or roads, where there never used to be. If the land has been up for sale for a long time, the photos may no longer be accurate, and there could be other buildings or roads, where there never used to be.
Check that the land has public roadway access. Some plots are fully surrounded by neighbouring land, and the only access is via a pre-agreed upon easement with a neighbour. This is fine in some instances, however, what happens if the neighbour stops maintaining the road on his property that leads to yours? Or some other issue arises. If you would have to utilize the neighbouring property to gain access, assure there are right-of-ways and easements that you could easily utilize!
Covenants and restrictions
Covenants, conditions, and restrictions are a set of rules governing the use of a certain piece of real estate. When you’re considering buying land, learn as much as possible about that property. The seller, or real estate agent, should be able to give you any information on covenants, conditions, and restrictions in place.
Availability of utilities
When purchasing land assure there is good water for human consumption. If there is water on the property, have it checked. If not, get reports regarding the depth of the groundwater table in the area and analysis of nearby water. Furthermore, find out about access to other basic utilities including electricity, gas or propane, internet, and television.
A land zone is how the local governmental authority determines how a specific portion of land can be developed. Although the plot of land you purchase could be zoned for residential use, the area around you might be zoned for less than ideal neighbours. Take a look at the long-term plan for the area and decide if you’re comfortable with the thought of who might move in next door.
Former property use
Find out what the current owner and, if you can, previous owners have used the land for. With commercial land, you can order an environmental report, which you may need for your loan anyway. Check into soil and water samples. No matter the potential use for the property, don’t buy contaminated property!