As an income-generating adult, one of the best things you can do is investing in real estate. You can rent a house or apartment as a practical solution for your housing needs. If you have enough money, you can buy townhomes for sale in Eagle Mountain, which you can reside in, rent out, or resell.
On the other hand, some people opt to buy land only. While it may not be a practical choice, unlike buying a house, buying land can be one of the best investments you can ever make. In the words of Lex Luthor in the classic Superman movie back in 1978, people will be in constant search for land. Some would be willing to pay thousands of dollars just for land for whatever purpose it may serve.
What to consider before buying land
However, there are some things buyers need to consider when purchasing land. Buying one doesn’t stop there; in fact, it will just be the beginning of your journey as a landowner. Also, there are a lot of things you can do on a purchased plot of land. Here are those things to think about before buying a parcel of land.
1. Think about what you are going to use the land for.
As mentioned, there are a lot of things you can do on a parcel of land. It can be developed into a residential or commercial property. You can build a house or a commercial space out of the said piece of land. If you have hectares of land, you can even build a mall, a hotel, and resort, farm, or any other public establishments.
2. Consider if you need land in the first place.
There are reasons why you want to purchase land. Some buy land and then resell it at a higher price. Some would prefer buying land and wait it out until they can use it in the future for their personal use. Meanwhile, some would buy land, build a structure like a house or a commercial building, and then sell it out. It depends on your purchase objectives.
3. You may not be approved for a loan for land purchase.
In most cases, banks won’t approve loans for a home purchase. Therefore, you may have to buy the land in cash. You may be fortunate if a lender allows to loan you as much as 50 percent of the total land value.
4. Make sure to do land inspections.
This includes hiring a surveyor to check the soil quality and other tests that will determine the land’s eligibility for structure building. For example, a land where a gas station used to stand may not be allowed to build a house on that same lot.
5. Make sure to consider utility access.
It depends on the area development around the said piece of land. In some cases, you may have to spend on building infrastructure to make the land livable in case you want to build a residential or commercial structure there.
Buying a piece of land is a good investment. You can be flexible with it — either you can keep it for your own or use it to earn a profit.