Buying a house or an apartment is a task in of itself but buying land, is a whole new ballgame. It requires sharp acumen, great insight and immaculate timing. Often times it ends up paying far more than what a normal house or apartment would. In order to avoid that, this is your Land Buying 101.
If you are interested in buying land, read on below and let Saiban Associates help you out by highlighting factors that you need to keep in mind when out hunting for the ideal sweet-spot to build your future home on.
Zoning and future plans
When buying a house, the zoning is not an issue however when you buy a vacant plot, it could potentially make or break the value of the land. Before buying a piece of land, visit the Lahore Development Authority’s office and seek out details about the legality of the land you intend on purchasing along with the details about zoning and future plans of the area the land is situated in. another proactive thing would be to ask about the plans of the surrounding societies or areas as well since they can be a pretty good indicator of the future value of your land.
This becomes especially applicable if you are buying government land. You need to pay attention to the deed and see if there are any restrictions regarding the sale, purchase and usage of the land. Often times a particular piece of land is intended for a specific purpose and cannot be used for anything else such as agricultural land. It cannot be used for commercial or residential activity. Make sure that you read through the documents.
Regardless of whether you are new to the realty market or a veteran, you would be aware of the saying: location, location, location! This is absolutely true. One of the major aspects of this is the ease of accessibility associated with the piece you are buying.
If your property is on the main road, it would have no issues with regards to the access. If it is in a rural area or an undeveloped area, make sure that you factor in the cost of access or a road within the amount. Ask around and visit the local development authority to ask about accessibility options.
The other most important thing to keep in mind is the provision of utilities. In large planned developments, it is the responsibility of the developer to provide the amenities such as gas, sewerage, electricity, water, security and so on. If you are not buying the property in a planned society, you may need to do these on your own.
One of the major things that people often forget is to include the land development cost in their finances. A lot of people thing that buying land is the end of the story. However, this is not the case. If you want the land to sell at a profit, some amount of development needs to take place on it. This means you need to factor in that cost in your financials. This would include the cost of amenities, making the land usable depending on its condition and so on.
Make sure that these things are catered to and you will hit a goldmine in terms of potential return.
So, these were some of the most common things that need to be kept in mind when you go out to buy land. Have you faced any of these scenarios? What are some of the other things that you include in your list? Talk to us in the comments section below.