Are you planning to buy undeveloped land? Well, there are endless possibilities to explore. The first step is researching the location and the land you are planning to invest in. But what if you are planning to buy raw land? Is it the right choice to make?
When it comes to real estate investments, several families plan to buy lots for sale in Summerland BC to construct single-family homes or multiple units. But buying land with an established infrastructure and non-building land for residential purposes are different decisions. The latter will not have existing buildings, roads, or utilities. Ideally, you need to buy non-building land that is close to roads and highways to ensure that is accessible and within your reach. But there are pros and cons you need to consider when investing in it.
Undeveloped land can be a great opportunity or a risky investment. Here are the reasons why. It is a huge investment, so you need to weigh both options before reaching a decision.
Pros:
Just imagine that the raw land you buy when investing in Summerland real estate is like a blank canvas where you can construct the house:
· Get the best deal
One of the biggest reasons why real estate investors are keen to buy undeveloped lots is that it is cheaper in rate than a land with several properties. Moreover, you can consult with Summerland builders later to construct your dream home if the location shows good prospects. The property taxes to pay for raw land are visibly lower than the developed one. Usually, taxes are based on the value of the land and hence it is cheaper.
· Get good returns
Want to know what the upsides are for buying an unbuilt land? Calculate the price of a Summerland property for sale in one of the best locations today that was once unbuilt and get valuable returns. All you need to consider is the timing of purchase and the location to get incredible returns. If your land without improvements is part of a large scale residential development project, you can expect high returns. Be it equity multiples or ROI, purchasing it should be an attractive option for those who are keen to invest in real estate.
· Flexibility of construction
As undeveloped land is sold as it is, you will enjoy the flexibility of construction within the zoning limits. So, make sure, you consult with Summerland realtors to know what the zoning laws are. Just calculate the size of the lot you want to buy and the types of homes you aim to construct to make sure the investment is worth the money you spend. For several units of residential projects, you will require more lot compared to single-family homes. Just check the widespread development at Hunters Hill where home-sites are surrounded by green acres to allow the residents to reconnect with nature.
Today, you can get a feel of the land remotely. Thanks to the satellite images and videos. As the unimproved land is vacant, you will get a real feel of how it would feel when owning a home on a piece of land.
· Buying is easy
The process of buying undeveloped land is easier than the other options. You can buy the land without worrying about mortgage rates as most financial institutions would not offer financing.
Cons:
· Getting permits and approvals
Zoning regulations determine whether you can build a house. Therefore, you need to research thoroughly when buying vacant lot. Zoning also determines the number of lots you can place or whether it offers promises of good returns. Just check the deal for Summerland property for sale and it is easier to determine whether taking the hassles of permits and approvals is worth the money you spend.
· Lack of infrastructure
The lack of infrastructure in raw land like plumbing, electrical, and roads are some of the aspects to consider when investing in raw land. Apart from this, you need to arrange for construction crews to begin work and turn it into a home-site.
Generally, buying a land is good investment but undeveloped land would never fetch the desired returns immediately compared to what you would get when your property is for sale in Summerland BC. Eventually, the idea of buying vacant lot depends on the individual. You need to consider all the factors wholeheartedly and assess your situation before buying undeveloped land.
