As with any investment, be it a new car, a start-up business venture or building your dream house from scratch, there are many things to consider before taking the plunge. An uninformed decision may lead to regret, stress and financial loss. On the other hand, if you take time to weigh in all the factors relevant to your purpose, it would greatly lead to the right choice.
Are you a property investor or homeowner looking for property to build from scratch? Here are important things to think about:
Purpose of Purchase
Focusing on your purpose or vision for the property you intend to purchase will help you avoid distractions that might divert your attention from your original plans. Making a checklist of your requirements for the property will help keep you on track.
Do you need a commercial space? Residential? Are you building a ranch? A farm? Location is very important in realizing your purpose for the property. If it’s for a commercial space, foot traffic is a prime consideration, so land that’s situated near a major road or highway is preferential. But then again, if it’s commercial but targeting online customers and offering delivery services, a remote place would also work. Warehouses, cargo bays and such do not need to be along the highway to generate sales.
Tear Downs vs. Vacant Lands
For investors looking for land to build high-rise residential spaces like condominiums, vacant lots in prime and strategic locations would be hard to come by. The most logical thing to do would be to look for tear downs. Distressed structures that would need to be demolished and cleared to be able to build from scratch. It would be more pricey than vacant land but if location has higher priority over money and sound feasibility study projections point towards substantial income generation, the land, along with the new structure, will more than pay for itself in the long run.
Meanwhile, investors looking to build communities that offer nature views, quiet landscapes and a break from the noise pollution of the cities would greatly benefit from fresh and affordable vacant lands. They may be slightly away from the city or even off the grid but they offer more possibilities. Zoning ordinances that set orientation of property or size and height limits may also be more relaxed than city regulations.
Pros and Cons of Tear downs:
- New structures increases appeal of the property
- It will be compliant to new building codes
- The new building can be built with energy efficient systems
- It will have existing provisions for power, water and sewer systems
- You need to spend money on demolition and clearing services
- There might be problems with existing sewers, water systems, power lines that needs fixing, updating or worse needs totally new installations
- Disruptive to the community
- Might still need to adhere to architectural theme of the neighborhood
Pros and Cons of purchasing vacant lands
- Its’ a clean slate to work with
- No costly and potentially disruptive demolitions
- You can plan for the structure without worrying about existing water systems, power systems or sewerage.
- It could be lower priced than distressed houses
- You will have more legroom for creativity
- You need to check if the land can be connected to major roads and public utilities like gas, water and electricity.
- Rezoning might take time before you get permission to build anything on the property.
Whatever you decide on, make it work for you. Land Prosperity can help you find your potential dream property – FOR LESS. Whether it’s vacant lands or Tear downs, we have the best properties for you.
Contact us now to discuss your requirements.