Suppose you’re the adventurous type who wants to buy a piece of nature or may even want to speculate on some real estate development in an urban area. In that case, you need to know the basics of how to buy land, as it’s a completely different set of rules than purchasing a house. You need to consider many things, such as access rights, availability of utilities such as water and electricity, easements, and land-use restrictions. Remember, everything you think and expect has already been resolved when you buy a home.
Experts who know how to buy land will tell you that initial planning is essential. You must spend a lot of time at your local planning and zoning department studying long-term land use plans for your county, checking zoning arrangements, and planning to develop schools, parks, and even landfills or malls. If in doubt, ask one of the planning officials for help; At this point, you can’t afford to make assumptions or take risks.
Check the zoning.
The next step on your “how to buy land” checklist is to confirm that your development is allowed. You have to check if the land you want to buy is in an existing subdivision and if so, check the restrictions. For example, there may be communal easements, which means you cannot build on them. You want to avoid ending up with an expensive piece of land where you can’t make your dream home.
Restrictions control the use of your intended property. These can range from the types of pets you can have to whether you can park your boat in the driveway. Beware of surcharges from organizations such as gated communities, where you will be responsible for maintaining the road since you own the road. Of course, if you think this all sounds like a huge hassle, you should start worrying even more; no limits means anything is possible; consider having your pool next to this new treatment plant! Find out if a community of owners exists, if membership may be required, and if they charge any fees.
Find out funding.
About financing. Problems arise even for those who need help to buy land Melbourne successfully. Unlike the highly competitive mortgage market, financing of land transactions is often done locally. Most of the funding for the land comes from the seller himself. A typical deal might require a 20 percent down payment, and the seller has a note of the balance.
If your land is affordable, you can take out a loan against an existing property or apply for financing from a local bank that knows the area. In any case, it is important to ensure that you have sufficient funding to purchase and develop the land according to your needs.