Just like with any other real estate purchase, buying vacant land involves a number of important decisions. To start, there are many reasons you should consider buying a parcel of land. It’s the more affordable option if you’re looking into having your very first asset. In addition, if you’re thinking about buying a house, it’s mainly for a place to live in. You might have to choose from already-built ones as well. But, with land, you’ll have more freedom. You can either build your own home or turn it into a commercial space. However, it comes with a number of restrictions. If you don’t check all of these before making the purchase, you might not be able to build your dream house on it at all.
Here are three of the most important considerations you need to keep in mind when buying a piece of land:
Understand all the costs involved
Owning real estate means investing both time and money. This means the more time you spend making the necessary preparations, the more prepared you are to spend your hard-earned money on this purchase of a lifetime. So, apart from the down payment, what other expenses should you expect when buying land for sale in Whittlesea, Victoria or any other city in Australia?
It’s highly recommended considering getting a title insurance plan. This will provide both property owners and lenders the protection against loss or damage, which may occur due to liens, encumbrances, and defects found in the property title. Title insurance may work as your shield against any possible legal complications that go with owning a property. It may not be a requirement when making a property transaction, such as when applying for a mortgage or bank loan, but financial institutions may suggest getting one to protect the investment they’re making as well as your own.
Purchase land with already installed utilities
If you’re looking to invest in property and keep it in great condition without much alteration, then utilities aren’t much of your concern. However, for everyone else, it’s an important part of the whole buying process. Whether you’re buying land to build a home or a commercial property, you’ll need access to utilities – gas for heat, electricity for power, water, and phone lines and Internet connection for communication.
When the construction starts, you’ll want some or, if possible, all of these available in the property you just bought. To completely address this concern immediately, consider purchasing a vacant land that already comes with utilities.
Consider how much road access you’ll have
You might think this no longer needs a discussion, but surprisingly, many buyers tend to overlook this factor. It may not be a common problem if you’re buying vacant land in an urban area. However, in the countryside, it’s possible for a property to be cut off from major thoroughfares. In some cases, they’re only available through private access, which can cause a number of problems.
In addition, if the vacant land isn’t accessible to public roads, this can mean it also doesn’t have access to both city sewage and water. You might need to get these built yourself, which will definitely add to the costs. Keep all these things in mind before signing that contract.