What To Know Before Buying A Vacant Lot
The reasons for buying vacant land are varied – maybe you want a spot to one day build your dream home, you feel want to snatch up some property in a popular location before it’s all sold, or maybe you’re looking at a relatively safe investment where you can park your money for a while. Regardless, buying a vacant lot is still an important and sometimes complicated decision that should not be taken lightly. There are plenty of things you should know before you invest in land. Here are some key elements you should consider before signing on the dotted line – everything from projected expenses to potential zoning restrictions, land surveys and easements or rights of way.
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LOCATION
The old real estate adage has stood the test of time for a reason. Nothing is as important in real estate as location, location, location. If you’re buying to build, you need to be sure the location will be convenient. If you’re buying as an investment, you need to be sure the land holds resale value. Before you start looking for land you should have a good idea of the area that you’d like to focus on. Make use of online resources such as municipal websites, take a drive around the area to see what lies nearby, do what you can to educate yourself. If you’re happy with both the lot and the surrounding community, you’re off to a great start.
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ZONING
While you may own a property, municipal zoning bylaws will determine what you can and cannot do with it. If your buying a lot to eventually build on, you’d better make sure bylaws will allow for the kind of home you’ve been dreaming of. This shouldn’t be too difficult and your Realtor® can help you find aerial mapping images and approximated images of any zoning and/or conservation restrictions that may come into play. Your Realtor® can also find you the contact information you need to get in touch with the appropriate governing bodies so that you can get first-hand information instead of relying on a third party’s opinion.
See Grey Highlands Zoning information here.
See West Grey Zoning information here.
See Chatsworth Zoning information here.
See Town of the Blue Mountains Zoning information here.
See Southgate Zoning information here.
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PERMITS
Like it or not, just about everything these days requires a permit or approval from one governing body or another. Need to put in a well? You’ll need a permit. Need to install a septic system? You’ll need a permit. Dreaming of a McMansion? Building restrictions may not allow for that type of home on the lot you’re considering and if they do…you’ll need a permit. You may not need that permit for years but you can speak to someone in the appropriate office to make sure there aren’t any foreseeable obstacles that would prevent you from some day fulfilling your plans. Getting your ducks in a row ahead of time is the best way to ensure you’re making a solid investment.
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ROAD ACCESS
This may sound like something that doesn’t require much thought but road access can sometimes present an issue in rural areas. If the property is not accessible via a public or municipally-maintained road, you may face problems you hadn’t even considered. In some cases, property owners are only given building permits once an agreement is in place that outlines who will be responsible for creating and maintaining the access road – and in some cases all expenses may be passed directly on to the property owner. What happens if the lot in question is landlocked? Then you’ll likely need a lawyer to help you formalize and register an arrangement with your neighbour that grants you guaranteed access to the lot via an easement over your neighbour’s land.
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UNDERSTAND ALL COSTS
Whether buying a home or vacant land, treat your real estate transaction as an investment. If you spend time properly preparing, you’ll be better positioned to make wise decisions. Be sure you know all of the potential costs associated with buying real estate. Does the seller have a current and complete survey they can share with you? If not, you might want to buy Title Insurance to protect you against future title issues. Will you need to get an up-to-date survey done in order to eventually build? Does hydro already run into the property or will you have to pay to extend lines into the lot? If the property is in a rural location, is there already a well onsite? What about a septic system? None of these expenses are small and all should be taken into account when budgeting and determining the current/future value of the property.
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