When buying or leasing land, it’s crucial to consider a range of factors that can significantly affect the usability, value, and profitability of the property. Here are some key considerations to keep in mind:
Before purchasing or leasing land, check the zoning regulations and land use restrictions to ensure they align with your intended use. Zoning laws dictate what activities can be conducted on the land, such as residential, commercial, agricultural, or industrial uses.
INFRASTRUCTURE
Evaluate the accessibility of the land. This includes existing road access or any legal access rights that may be needed. Infrastructure like power, water, sewage, and internet services are also crucial and can be expensive to develop if not already in place.
ENVIRONMENTAL CONCERNS
Conduct environmental assessments to identify potential contamination or protected areas (like wetlands), which could restrict development or incur cleanup costs. This step is crucial to avoid future legal and financial liabilities.
SURVEY
Ensure a current survey of the property has been conducted. This will confirm the precise boundaries and acreage of the land, helping to avoid disputes with neighboring properties.
FINANCING
Understand the financing options available for buying or leasing land, as these can differ significantly from other types of real estate. Some lenders may have stricter requirements for land loans, including higher down payments and interest rates.
FUTURE DEVELOPMENT
Investigate planned developments or changes in land use in the surrounding area, as these can affect the property’s value and your intended use. For example, new commercial developments can increase traffic and boost land value, while new industrial areas might detract from the appeal of residential developments.