When it comes to investing in land and property, buying undeveloped land can go one of two ways.
You could either strike gold or purchase land that will garner a huge return, or you could buy land that may be best suited for a murky swamp. So the question then becomes: how do I make a good investment when purchasing raw land? Well, the answer lies in being able to avoid a number of common mistakes that people make when purchasing land.
Most of the time, people buy into a certain plot of real estate without doing the proper amount of research or due diligence.
Some people are just too eager. Here are five common mistakes to avoid when buying raw land.
- Don’t buy unsteady ground. You would be surprised to learn about how many land buying deals end up going south because the buyer purchased land that wasn’t solid. This actually happens all the time. No matter if a real estate agent or partner tells you that the ground is solid, you always want to survey. The real land may be multiple feet under landfill or manmade soil, which will cost a fortune to remove and excavate.
- Don’t buy land where there isn’t water. Land without water doesn’t have any use. Of course, if you buy land closer to a major city, you will have a great variety when it comes to water sources, but when you are buying land in more remote locations, the sources of water start to dwindle. Ideally, you want to have a documented, proven source of water for any land that you purchase. If there isn’t a well or a groundwater source, you probably want to keep searching.
- Don’t buy land that makes it impossible to install or connect a plumbing system. Again, raw land near a city will have more opportunities to hook up a plumbing system – and it will be easier. However, if you start going further into nature, it will become harder and harder. Of course, you could simply install a septic system, but there could be a number of challenges that make installing a septic system difficult – the land may be too hard or there may be restrictions. Ideally, you don’t want to buy land where you can’t install a septic system.
- Don’t buy land that won’t allow you to build what you want to build. If you want to build a home on your land, but there are restrictions against building residential properties on said land, it will be difficult to get any use out of the land and your investment will be worthless. Before you get into this predicament, you want to find out what you can and can’t build on a certain plot of land.
- Don’t buy land that is predicted to be something else in the near future. Sure, the world may be covered in water in the next million years, but right now, most of the Earth’s surface is safe. However, when you are looking for raw land, you want to make sure that the plot you purchase doesn’t have an immediate shelf life – some plots are located too close to water and carry the risk for flooding or submersion. In the end, having the land evaluated by a company like Hunter Finance before you put any money down is vital.