Unless you are involved with the property industry or buying land for investment, it is not every day that you will think of buying land in Johor Bahru. There are many things to note when you are considering buying land, especially if you are a newbie.
It can be exciting throughout the process of buying land but also overwhelming. There are a lot of steps throughout the process. If you search through the info on buying land, most of the time will be talking about what steps you need to follow or take note of, but there is not much advice on what you should avoid.
If you are serious about buying land for investment or your own use, besides knowing what documents you need to prepare, you will also need to know what not to do. Even if you are experienced in buying land, you may make a mistake. So let us go through some things that you should avoid during the process of buying land.
Buying Land #1 – Not Researching For The Right Type Of Fund
Funding is one of the common things that people will think about when they need to buy land. They will consider whether they have enough funds for the down payment or can afford to pay it in the long run. Getting a loan is also a way that people will think of to settle their funds.
These are common questions people will ask themselves before buying land. If you have good credit, you have a high chance of getting a loan from a bank or credit union. Getting a loan is not your only option. If buying land is for business, consider discussing with your partner if you can share the cost.
Another option that some sellers will do is financing. Discuss with them if you can pay for it in installments over a period. The land will be entirely yours after you fully pay off the sum.
These are some options you can consider when you are buying land. Remember that you can look for other options instead of relying on a loan.
Buying Land #2 – Accepting High Interest
If you decide to take a loan, make sure you take note of the interest. You wouldn’t want to overpay when it comes to the interest rate. Some lenders will give you a high-interest rate and add to the overall price of the land.
You may want to check with a few banks or lenders when finding a loan. Compare the interest as finding a low-interest loan should be your priority, or you will pay a bunch of interest instead of saving money.
If you apply for a loan with high interest, it will be harder for you to repay it. You will also be earning less profit from the land in the future. If there is someone around you who has done it before, check with him and learn more about it. You can get more tips than you can imagine.
Buying Land #3 – Ignoring the Inspection
Inspection is something that you cannot ignore when you are buying land. Think about it, you didn’t have a look at the land or send a professional for an inspection before you bought the land that you thought was perfect land. But when you first arrive at the land after buying it, you find it is not what you want, and you can’t do anything on it as you planned.
You can avoid this situation. You must look at the land before buying it, as you have some plans you would like to make on the land. For example, if you plan to do farming, you will need a soil test. If you plan to build a factory, you will need a perc test. Don’t forget about the zoning code in the area.
The zoning code decides what you can do and what you can’t on the land. You need to understand the rules and regulations before you buy the land, or else you won’t be able to make use of it. It is important to learn about the zoning code before you make a purchase.
Buying Land #4 – Forgetting About Natural Hazards
Some people ignore the natural hazard, but it is important when buying land. Natural hazards can determine many things, such as insurance options and the price of the land.
The most common natural hazard is whether the land you are interested in is in a flood zone. Land in a flood zone tends to have unstable soil. If your land is close to a fault zone, you will be at risk for wildfires. If you face these problems, you will want to discuss your options for insurance with the professional.
Natural hazards can affect many things, including what you intend to do with the land or any activities you intend to do. You will want to understand your potential issues before buying land.
Buying Land #5 – Not Working with the Right Agent
Choosing the right agent will help you to avoid many mistakes. It is important to find the right professional to help you with the process of buying land.
The process of buying land is different from buying a home. Working with a company specializing in buying and selling land is better. A company with a wide wage of choices will be better as you can compare which will be better for you.
Besides that, the company will help you find the land that suits your need or hunt for one in the market. It will also be easier to discuss the payment options.
It can be great to buy land for investment. It is an important decision to make as you don’t want any trouble in the future. The most important thing is to buy one that meets your needs and avoids further trouble. Think of the purpose of buying the land and what you can avoid. Go through all these common mistakes that people will make, which will help you with your decision.