Vacant Lot Property Investments: Things to Watch Out For When Purchasing a Vacant Lot
The most misunderstood and overlooked real estate investments worldwide is buying a vacant lot. There are a lot of real estate investors who don’t fully recognize the benefits of owning a land in raw form. Here are the important things to need to watch out for before deciding to purchase a vacant land:
1.Know the future usage of the land you are thinking to purchase. You’ll know the best value of the land if it suits your needs and purpose. Zoning classification helps you get the best value of the land with the help of the local zoning department. Zoning are classified as commercial, industrial, agricultural, residential and mixed use.
2. Take into consideration the topography of the vacant land you are intending to buy, as this is the basis for structural building like your dream house or a business establishment.It is also important to check the unpredictable elevations in the are such as ravines, cliffs, valleys and mountains.
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3. Take into consideration, the annual tax associated with the property. It is fair to have a reasonable annual tax of one percent to four percent. Beware of high taxes imposed on vacant lots, because some have a higher tax compared to the actual value of the property.
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4. It is important to also check the availability of public utilities such as power, water, waste, gas, phone and internet service. Of course, you purchased a vacant land thinking you can build your dream house or a business building someday.
5. Gain knowledge and understanding regarding building setback requirements. Know and understand the exact land size or dimensions. You may ask the local zoning authority for these building setbacks requirements. You might also want to inquire about property restrictions that may apply.
6. It may also help understanding how natural resource rights works and how it affects the land you are planning to purchase. The trees or water resources may not be directly yours. The legal use of these resources is dictated usually by state laws and governing agencies, and permissions or special permits are required to utilize them.
7. It is important for you to investigate the previous uses of the land. Contaminants might be embedded beneath the grounds of the land that may pose a major problem for you if you decide to build building or house structures in the future. It affects water system, you and your family’s health and security.
8. Know the surrounding properties. Of course you wouldn’t want property with underground mining underneath or on top of a huge sewerage food or chemical factory.
Research and invest in the right vacant lot. For other related articles, you are invited to come and view our website.