Thinking about purchasing land?
Many people buy raw land in order to develop it later, perhaps as a vacation propety or a home for retirement. Self-directed investors will sometimes purchase a lot or an acreage to hold and sell later without developing it further. What you intend to do with it and your expected return on investment will determine which type of property is most suitable for your needs.
The utility of land for sale is as varied as the geography on which it is sited. If you want to build a home, ideally the parcel will have at least one location where a home may be constructed easily without the need for dramatic changes to the topography. The shape and size of the property also need to fit your plans as these affect buildablity, resale, and enjoyment of the outdoor spaces. Ask youself how much space you need between your home and neighbours.
Some land is cheap or undeveloped for a reason. Deal-breakers can include zoning issues, poor drainage, the need for excessive fill, and environmental concerns. It’s important to research a property, from the tax assessment to zoning and planning, to ensure that it’s suitable and developable. Undevelopable land may not increase significantly in value over time.
The cost to develop land can vary from county to county. The most significant start-up costs are water, sanitation, power, and other utilities. Some of these can be mitigated through the use of off-grid strategies such as septic systems, water wells, and solar power. If these alternative systems are allowed in the zoning, the owner-builder is well-situated for an eco-friendly house.
Carrying costs until you build, or for the duration of your buy-and-hold investment, will include property taxes. Check with the tax department to make sure there are no surprises as land is taxed at different rates depending on use.
Financing your owner-built home is not difficult if you have good credit and have at least 50% equity in the property. For people who aspire to get on the property ladder, an inexpensive piece of land can be purchased and paid down with relatively low monthly payments until the homeowners are ready to build. For some, this is a wonderful opportunity to create value early in their savings regime while being able to look forward to a new home at some point in the future.
Questions? Contact us today for more information on land for sale in the South Georgian Bay area.