Youre thinking about buying land, either as an investment or as a plot on which you can design your own house. Before you start looking at anything, you want to think about the ultimate question in this type of purchase, namely: location, location, location! Are you a city slicker or a country body? Do you want the mountains, desert, or oceans? What about overall development - lots of neighbors and amenities or going it in the wilderness?
There are many other factors in the location of a parcel like safety, access roads, education, overall culture/community, public works (water, electric) the regional history etc. Sit down right now and make a wish list of what you consider would comprise the best piece of land. That list is your starting point. You can use it to scour land listings or take it to a realtor who offers land buying services. Note: if you decide on the second option, this person should be knowledgeable about the zoning laws and all the local and legal necessities for developing a piece of land (or reselling it in the future).
Why Buy Land?
Buying land allows you to build a custom home in a space that offers all the environmental perks you want. Its a highly personal buying choice where you design your vision literally from the ground up. For green home buyers, buying land means being able to create a home focused on sustainability and earth-friendliness.
Some people also choose to buy land as an investment option. They buy a parcel looking to the future when that land appreciates, at which time they will sell (or hold it even longer hoping for prices to continue to rise).
Land Buying Risks & Drawbacks
There are numerous little details that professional developers use when looking for a place to build. They review zoning ordinances. They check to see if there are unusual sights, sounds or smells that might be off-putting (an adjacent farming community is one example, as is being on a major bus route noise wise). They survey the area for hazards (like waste dumps or hungry alligators). They review easements, utility availability, and check appraisals to make sure the asking price is reasonable.
Most buyers are not professional developers and might not think of all these fine points when theyre buying land. Thats where your biggest risk lies. If you have specific plans for your plot, make sure all the regional laws, codes, ordinances, etc. support that goal. If not, youll have to find out what steps youd have to take to fulfill your plans. In some cases the extra hoops just arent worth the time, effort or money to jump through. Look in a different location for buying land where you have as many of the right conditions as possible.
By the way, land loans can prove a little more difficult to obtain vs. a traditional mortgage. Some experts recommend a cash deal (with proper paperwork) when practicable.
Rent First; Buy Later
Unless theres an urgent reason to buy now, a person thinking of setting up home on a new plot of land might do well to rent a place in the region first. This gives you a chance to test drive that community and find out if this really is a dream spot to put down roots.
Networking:
If youre intent on buying land, use every network youve got to find available plots that fit your specifications. Let trusted business acquaintances, family, friends, etc. know about your quest. What this does is improve your chances of dealing with a known seller instead of a complete stranger. You can also get a lead on a hot piece of land before the price gets too high.
Overall really think about your reasons for wanting to buy land. Dont leap before you look. It can be a wonderful treat to have a space and watch it grow, but buying land can also end up being a real headache. Do your research, get expert input, and then make your decisions accordingly.