Now Is the Time to Invest in Vacant Land
In a buyer's market such as this one, you almost can't go wrong in investing in land - whether it's purely for investment purposes or for your "dream home someday..."
Even though there are many choices on the market, you still need to do your homework to make sure your money is well spent!
It's tempting to shop by price tag, and, often, price is a good place to start. However, remember that many other factors can add, or detract, value from your purchase.
When considering purchasing vacant lot(s), be sure to find the answers to the following points. I, as your Real Estate Agent, would be happy to complete this research for you and provide you with all the answers you need to help you begin reaping the benefits from investing in this great buyer's market!
- Lot Size: When comparing pricing, be sure to compare price per acre, not price per lot, lots of course range in size and you want to make sure you're comparing "apples to apples"
- Covenants, Codes, and Restrictions (CCRs): Be sure to carefully review the complete CCRs for the community, to make sure that the community is designed in a way that is accommodating for your lifestyle - that the neighborhood's "rules" aren't going to hinder your expectations in any way
- Community: Do some soul searching - is being a part of a complete "community" important to you or do you prefer to be outside the bounds of a neighborhood-type development? Check to see what neighborhood the land is a part of.
- Flood Plain: Enough said. Know, for your own sake and in the interest of resale value, what flood zone the property is within. Subsequently, be sure to check to see what type of flood insurance coverage may or may not be required.
- Wetlands: Know that in the state of FL, you can own wetlands, but environmental laws protect those lands from being cleared, even if they're privately owned. So, before you are enticed by a large parcel of land, know just how much of that land is usable land.
- Zoning: How is the land zoned? If you're looking to build on it, be sure it is zoned for single family residential use. I also suggest you look at the zoning of the land around you - just because your land is zoned for a particular purpose, doesn't mean the adjacent land is as well.
- Square Footage: What are the minimums and maximums allowed in terms of square footage for homes built on the land? Does this meet your objectives?
- Neighborhood Amenities: Some communities provide certain privileges to its homeowners, such as access to homeowner's parks, nature trails, community pools, etc. If this feature has value to you, make sure you consider the amenity factor!
- Taxation District: In this market especially, it is easy to get enticed by a purchase price tag. However, remember that you will incur additional fees on your land as you own it - including insurance and taxes. Check the taxation district of your property - some areas are districted for higher property taxes than others and if you're keen on the bottom line, taxes will surely impact that!
- Required Build Out Time: Just because it's vacant land now, doesn't mean that it is intended to stay that way. Does the land you're considering have a required build out time and/or date for when building must commence by? If so, make sure these set timelines align with your timeline!
- HOA (homeowner's association dues): In the same way that you want to consider insurance and property tax expense, you'll also need to figure in HOA dues, if any. Know how much they are, and how they're collected (annually, monthly, quarterly, etc.)
- Road Access: What type of access do you have to the property? You may have a preference over paved/non-paved roads; city, county or private roads.
- Drainage and Storm Water Management: You may want to review the drainage system that's been designed for the land. How is the area set up to handle large amounts of storm water versus normal rainfall? A smart plan for drainage will hopefully eliminate worry over erosion, wash out, unsightly standing water, etc.
- Location, Location, Location: And last but not least, remember location, location, location... both from your personal perspective and, if resale value is a concern, from a potential future buyer.
Ready to start shopping? Make your dollar work for you and invest in vacant land. Click here to let me know what you're looking for and I'll do all the homework for you:
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