The decision to buy land or property is not one to be taken lightly. Land can be extremely expensive, representing a considerable investment in both time and financial resources. If you're thinking about buying land or property, you should ask a few questions yourself first.
1. Why Are You Buying This Property?
Is your primary interest in the property to create a personal residence, to have a vacation home or as an investment? While these interests may overlap, you may need to explore different considerations based on your priorities. Easy access to your property may be a plus for a personal residence but not for a vacation home. Proximity to a tourist attraction may be good for your investment property, but not so much for your personal residence.
2. What Is the Property's Investment Value?
Even if you aren't buying a property primarily as an investment, it's still important to understand its value. You may decide to sell the property down the road and it's good to know up front what you can expect in this regard.
3. Can You Afford This Property?
Most people will need to get a mortgage in order to purchase land or property. While some may fear the hardest part of the process is getting the mortgage loan, the reality for many is that the hardest part is paying it off. If you are not able to pay your mortgage loan, your property may be foreclosed on, leaving you without money, without property and with bad credit. No matter how tempting a piece of land or property may be, don't borrow money to buy it if you don't know how you are going to pay it back.
4. Is the Land Surveyed?
It's hard to know if you're getting exactly what you are paying for when buying land, especially if you are buying a great deal of acreage. A certified surveyor can tell you and show you the exact boundaries of the land you are considering, so you can purchase with confidence.
5. What, if Any, Are the Zoning Restrictions on the Land?
It's important to know local zoning restrictions. If you're planning to build on your land, you don't want to find out that your plans violate local regulations after you've started, or even after you've bought the property. Find out up front what you can and cannot legally do on the land and make sure this fits in with your needs before buying.
