Things that you need to take note of while buying vacant land are similar to buying a factory. Sometimes you will find that there will be someone around you that just bought a house but struggling to repair a property that is falling apart. It can look like a good deal during the transaction, but you realize the fixture and fittings are falling apart.
Have you ever come through this scenario? If not, the lesson you can learn from this is that don’t buy a house without doing any homework. It may differ when you buy vacant land, but the rule is similar. You need to know what you are getting yourself into.
It is an important and complex decision when buying vacant land. There can be many reasons to buy vacant land, such as building your own factory. Many restrictions can be applied to vacant land. If you are not careful, you won’t be able to build anything on the land.
Buying Vacant Land #1 – Building Permit
When you intend to buy vacant land and build your own factory, a building permit plays an important role in this process. Everything you are going to build requires a building permit. You must deal with government zoning before you start construction and obtain building permits.
It can be a hassle when applying for permits, but construction permits can help to protect the land and ensure that you follow the building codes. These building codes ensure that your building structure is safe and won’t collapse like a house of cards.
You will want to get ready for all sorts of permits as the construction progress. It can be from plumbing to electrical work. But with all these permits, you will have a solid legal investment after completing the work.
Buying Vacant Land #2 – Flooding
With the nasty weather nowadays in Malaysia, certain areas can get flooded easily. Unless you are looking for swampy areas, you wouldn’t want your place to get flooded. This powerful destructive force can destroy your building or cause water damage which you wouldn’t like this idea.
You will need to do some homework to check if your vacant land is in a flood area. First, you will need to check the plats. Doing some research can determine if that area is a potential flood area.
Buying Vacant Land #3 – Surveying
Another important thing to take note of buying vacant land is surveying. It is a basic cost when you intend to buy land. You wouldn’t know where the boundaries line up with the land when you look at it on the map. This is where you will need the surveying.
Professional surveyors will research and use a plat to determine and mark the exact boundaries of your vacant land. The survey should be visible with markers identifying the corner boundaries. You may even come across the survey when you are verifying paperwork for your vacant lot.
Even if you come across some previous survey document, you will want to ensure that it is the latest version. If it is too old, getting a new survey will help you to define your property line. It is important, especially if you are getting into legal matters. Surveys can help to plot out property boundaries.
The cost of the survey can be affected by several factors, such as the size of the property, the amount of time used for the survey, and how much research the surveyor need to do. The type of survey will also affect the cost.
Buying Vacant Land #4 – Road Access
You need to take note of road access when you plan to buy vacant land. It might sound like a no-brainer, but it can be a complex issue when buying vacant land. It is not such a big problem in urban areas, but if the vacant land is located in the countryside, the access from a major road can potentially be cut off, and you can only access it via private access.
This can create several problems, such as you may not have access to the water or sewage, or it isn’t accessible via public roadway. You may end up with a septic system to handle the basic utilities, which will be an additional construction cost.
No matter if you are doing business or for investment, it is important for easy access to your place. Access from the public road can guarantee a route to your land, but things will get complicated if it involves a private road. If your vacant land is landlocked, the typical solution to solve this is to arrange with your neighbor for guaranteed access through their land.
Buying Vacant Land #5 – Utilities
Utilities are a must-have element for business; you must take note when buying vacant land. Utilities include electricity, water, lines for internet and phone. You will want all these in your area before the construction begins. If you don’t want to worry too much about this, find vacant land with all these utilities.
If you can’t get the vacant land with utilities installed, you will have a few things to take care of. Be prepared to pay for the cost. You must deal with the power company to connect your property to the nearest power line. This goes the same for phone companies.
Water and sewage can be slightly complicated. If your vacant land isn’t close enough to water and sewage lines, you will need a septic system to gain access, and this means that there will be an additional cost.
Buying Vacant Land #6 – Location
Location is the most basic thing you must consider when buying vacant land. If the land has no resale value, don’t buy it for investment purposes. If you are setting up a business, don’t buy land isolated from potential customers.
Before getting yourself a piece of land, you should have a general idea of the purpose of getting the land. Consider the type of business that you are setting up, such as is it near to your potential customer? Is it easily accessible?
When buying vacant land for business use, you will need to carefully analyze a prospective location’s business value. This is something you should have in your mind while you are choosing the vacant land.