Dont buy land without checking some key facts first. Firstly, check what sort of development is permitted on the land. Planning regulations may rule out residential development for example, whilst commercial uses may be limited to certain sizes or purposes. Knowing what you can put on your land helps you when negotiating the purchase and when planning for the future. Also check whether there are plans for any developments similar to yours nearby. If one plot of land is for sale, its possible that there are several on the market and selling your development will be harder if it faces competition close at hand.
Residential
If you decide to build a residential development, you need to obtain appropriate funding and have your plans passed by the local authority. This applies whether you are building a single property or a multi-dwelling site. You must have planning approval before you start and you must make sure that you can connect the relevant utilities to your site. Careful planning before you begin a development is crucial to its overall success.
Commercial
There are several uses for commercial property. You could decide to build a warehouse or storage facility where you can rent units to local businesses at a reasonable price. If your land is in a good location, you might think about creating a leisure or retail development, which raises good rents but may face opposition from local residents during the planning process. Alternatively, you could build new office space, attracting local companies through targeted marketing, clever use of space and ease of access.
The use you make of your development land has an effect on the returns you can make from it. Its important to consider your options before you buy the land, because a development finance company will want to see your plans and your forecast returns before it lends you any money for your project. Use your experience and the expertise available to you to make the most of your development land.
