Land in a raw condition can be more attractive after developing it. Many investors buy raw land, develop that and sell in better price. This way, they make handsome income.
There are some questions to ask when buying land for development to be safe in your investment return. You need to ask what zone is belonging to the land and what type of development you can do here. These two are the most important questions. In addition, you have to ask title history, tax, bank issues, pricing etc.
In this post, you will see the set of questions related to land buying in short.
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| A common question to ask during land purchase is about its upgradation history. Image: Rachel Claire |
Questions to Ask When Buying Land for Development and Why
The buying decision of land is an exciting thing for you. The relevant questions to ask when you are set to be involved in land development after buying that are given below.
What is the zoning position for the land? This question will determine what types of development are allowed on the land. Is it commercial or residential will be clear in this line.
How to predict this property? To predict land development you have to be wise. This question might get answers from them who are selling the land but it will require personal study in this regard.
What are the environmental restrictions on the area? This includes things like wetlands, endangered species, and floodplains.
What is the current condition of the land? This includes things like soil quality, drainage, and street to the property.
Also read: How to Buy Land for Development
How much is the estimated budget of development? This includes things like infrastructure, land development permits, and building houses.
Is there a potential market for the developed land to sale? This includes things like demand, competition, and pricing trends. Among all questions to ask when buying land for development, it could be the 1st priority because you want to make money reselling it later.
Do the land have any bank issues: If the land is already related to development loan, you may need to rethink about your budget and finance.
What are the risks associated with the development? This includes things like legal challenges. Be careful about this question. If any suit, case etc. are there, you will face some extra time consuming matters. Any injunction will prevent you to use the land.
How fair is the chain of titles: The chain of title means the ownership records. Its changing history. You need to get this papers.
What utilities are needed to add to the property? Know what utilities are available and what are not. You have to know how to bring utilities in vacant land if needed any of them to add.
See also
In addition to above mentioned questions, you may also want to ask specific questions about the particular land you are considering to acquire. For example, you may want to ask about the history of the land, the development history, and current weather issues. Search a list of land for Sale to compare these things.