The first thing to consider when buying land is its location. There is a great difference in the price of land depending on whether it is located in an urban area or the countryside. It may often be difficult to obtain planning permission to build houses on land in the country, especially if the land is green belt. Thus, it may be possible to buy land cheaper in the country. This could primarily be due to supply and demand; fewer potential buyers available. A thorough appraisal of any land, especially its location should therefore be conducted prior to parting with any cash.
The surrounding environment must also be taken into consideration. Smell and ambient sounds play important factors in determining the feasibility of the land for further development. It is not expected that people will trade odors of fumes in urban areas to the agricultural smell of pig dens!
It is also important to identify any zoning issues which could affect the land you are considering to purchase. Certain greenbelt land cannot be zoned and sold as development land. As an investor, you need to be aware of this and ensure you do not buy land that is protected under this scheme.
The geodetic structure should also be identified. This is also necessary to minimize the damage that might result from hazards affecting more particularly the soil. Soil component structure will reveal important information that will determine the feasibility of further development.
Access to the land by way of existing routes and roads is of paramount consideration. Land with good access routes is more likely to achieve planning permission for new build properties than land that is in the middle of nowhere.
Services such as water supply and electricity are also important points that need to be considered when purchasing land. The state of these services must be studied in order to determine if development of the land is likely to be possible.
When buying land, you can either purchase plots with planning permission approved or use a long term approach of buying land with no planning permission in the hope of obtaining it further down the line. Obviously the latter option will provide greater returns associated with the greater risk levels.
To reduce your risk, it may be advisable to purchase an option to buy that land at a prescribed price for say within 2 years. The 2 years should be enough for you to determine whether or not you are likely to obtain planning permission. If planning permission is likely to be granted, you purchase the land. Otherwise, you dont go ahead with the purchase. This way, you only set to lose the option fee and not the entire purchase price of that land.
Buying land is an increasingly popular form of investment for many people. Naturally, as with many serious financial investments there is a great deal of research that is needed before poring funds in. Hopefully the following information will give investors the essential knowledge of how to succeed in the world of land buying.
The most important factor when buying any piece of land is its location. Whether the piece of land is in the countryside or in an urban settlement will mean the price varies greatly. For instance, a plot in the country may be susceptible to planning permission restrictions meaning that as an investment it could turn out to be a poor profit making opportunity. This usually means that land is cheaper in the countryside, although it is harder to develop. Of vital importance is to have an independent appraisal of any plot before buying.
Also important is to look at the surrounding area when thinking of buying land. For instance smell and ambient noise are likely to affect any development plans. Examples would be a plot near a water treatment plant or next to a major road; both these factors would definitely affect the achievable price once development has occurred.
Additionally there may be zoning issues that affect the development opportunities. Land that is zoned as greenbelt will not be suitable for investment as in most cases any building will be restricted, if allowed at all. This is why as an investor it is important to research any piece of land thoroughly to ascertain whether any legal barriers may prevent making a profit. As part of this extensive research a soil survey should be made, this can reveal much about the development opportunities of any piece of land.
An essential piece of information to consider before buying land is the existing routes and road access. This is important because a piece of land that has excellent road links will be more likely to achieve permission for development and new builds than a property that is in the middle of nowhere and only has a dirt track reaching it.
The amenities present at the plot should also be considered. Preferably a piece of land should be connected to both the electricity and water mains supply. This will not only make it more suitable for development, but will save a great deal of money, as having a plot connected privately can be extremely expensive.
If securing planning permission sounds like too much of a chore to be a quality investment opportunity there are many plots that are sold with planning permission already gained. While the price of land with planning permission will be greater, the risks related to the investment are far smaller. As with any investment however the risk reward balance is vital, normally the higher the risk, the greater the profit.
Understandably so many people are choosing to invest in land because the UK is heavily populated and as a result, housing projects are being built across the country. Speculating in land however is not without its risks, it is hoped though, that with a logical and methodical approach it will possible to secure a plot that has a high chance of making profits. This means taking into account location, zoning issues, transport links, the amenities present and the chances of securing planning permission. If all of these factors are researched and studied thoroughly it should be possible to become a successful land speculator.
Both Javaid Kiyani & Thomas Pretty are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Javaid Kiyani has sinced written about articles on various topics from Real Estate, Property Agents and Management Software Solutions. Dr Javaid Kiyani is a successful and Internet Marketer. His vast knowledge of. Javaid Kiyani's top article generates over 12100 views. to your Favourites.
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