Buying land can be a great investment, whether you're looking to build a new property or redevelop an existing one. However, it's integral to know what to look for and how to handle the people involved in the buying process.
Here are a few things to consider:
People can buy land for many reasons - for long-term investments, short-term investments or to redevelop for a quick sale. For those concerned who are looking to buy a property but are concerned about the unpredictable nature of the property market, purchasing land can be a good alternative investment. Whatever your reason for investing in land, you need to do research to eliminate any potential risks. The most important things you will need to ask yourself are: why you want to buy the land? Is it suitable for your plans? Does it fall within your budget (including the cost of the land, building, legal and survey costs - as well as any other potential costs which are currently unaccounted for)? And finally, will you be able to make a reasonable profit?
As mentioned above, budgeting for your investment is extremely important. The value of the land will relate to the general state of the property market and it can also vary according to a few important factors. Location, size, distance to transport links and planning permission will all influence how much the land will sell for. As a side note, land sold with planning permission is always more expensive than land without. Obtaining planning permission can be a time consuming process.
As is the case with property, location has a huge influence over how much a plot of land costs. Location is an important factor to consider when you are thinking about the eventual resale too. When it comes to location, you're more likely to make a bigger profit if the land you buy is within close proximity to transport links and amenities. If not, and you’re wanting to buy in a rural area, you will need to market the property by highlighting its exclusivity and uniqueness in order to achieve a good resale.
Once you've set your sights on a specific plot of land, you'll need to get a qualified land surveyor to perform a survey. They'll assess any factors that will impact the final cost and resale; this will help you to establish whether or not it will be a good investment. This will also mean that if the title deeds of the land are outdated, they can be updated so that you can negotiate the final price more easily.
The legal procedure for buying land is actually less complicated and long-winded than buying property. It will need to be carried out by a solicitor or lawyer who specialises in land transactions. One thing to be aware of is that land can be snapped up quickly as more people are turning to land investment as an alternative to buying property. Always select a reputable lawyer who has a track record of getting things done in a timely manner! When selecting a lawyer, personal recommendations are extremely valuable, but if this is not possible, do thorough research online to find the right lawyer for you.
Once your lawyer is selected, ask lots of questions and use their knowledge to your advantage - this will allow you to secure the best price possible. Once your lawyer is happy that all legal implications have been taken care of and you have the necessary approval to purchase, the purchase can then go ahead.
Please bear in mind that If you're buying land at an auction, the buying process will be sped up considerably so you will have far less time to carry out your research and legal work.