With the price of real estate soaring, purchasing land may seem like a second-best option for the potential investor. In reality, investing in land is actually an excellent opportunity in the current economic climate, with trends showing that the average price of farmland is increasing at a far greater rate than that of property. Before you make the decision to invest, however, it is important you consider a number of different factors.
- List your objectives: While some see investing in land as an alternative investment, others are interested in self-build endeavors. Whatever your intentions may be, make sure you weight the costs and potential benefits to determine if the risk of purchasing land is worth it to helping you achieve your goals.
- Determine your budget: The price of land will vary depending in its size, location, proximity to transportation, and whether or not the area has been granted planning permission. Find out how much you are willing to spend and compare the price of your prospective plot to the price of plots in the area to determine if you are getting a good deal.
- Find the right plot: Land is classified as either Brownfield (derelict, vacant land) or Greenfield (parks, countryside, or forests). Since finding a good plot can be challenging, it may be wise to consult with both a land or real estate agent and an attorney to find a piece of land that fits your objectives. Private inquiries, auctions, and utility companies may also be good sources.
- Consider the location: You should always consider a piece of land’s resale value when making a decision. Areas in close proximity to amenities, transport links, and other types of amenities are usually safe choices. Conversely, if a plot is in a rural location, it will need to have some unique feature in order to have a profitable resale value.
- Have the land surveyed: Be sure to conduct a proper survey and inspection of the land before making a purchase. With a surveyed parcel, you have a guarantee that the acreage will be exactly as described and all risks, environmental hazards, and public right of way issues will be made known. Likewise, boundary lines shown on a survey map should be pinned and flagged on your property.
- Make sure the land has planning permission: If you plan on developing the land, make sure your proposed developments are approved by the local authorities. The last thing you want to do is invest in a plot of land and find out that your plans are ruined by local restrictions.
Simplify Your Land Investment with Schern Richardson Finter Decker
Like any sort of real estate investment, purchasing land can be a complex endeavor with numerous risks and legalities attached. At Schern Richardson Finter Decker, our knowledgeable Phoenix real estate lawyers can help take the guesswork out of your transaction and ensure your best interests are guarded every step of the way.
To find out more about what our AV Preeminent® Rated attorneys can do for you, call (888) 464-9958 or contact our office online today.