You need to identify what land will be the most suitable for your new project. How do you know which one is the best? Here are five things you should consider before developing land.
1. What Are Your Personal Goals?
It is essential to be clear about your goals. If you intend to use the land as a retirement home, location becomes critical. You most likely will not want to live in the middle of nowhere but rather close enough to larger cities where shopping and medical facilities are readily available.
- Do you plan to use this land as a retirement home or a vacation property?
- Do you want to make a profit or break even?
2. What Do You Want Out of This Project?
As with any project, what’s the purpose of developing this land? Are you building on it for your purposes or plan to move on after making money? Are you planning an extensive development that could last for years, or do you think about a short-term project that can be finished within one to three years?
3. What Is the Land Intended to Be Used For?
The land may be intended for a single-family home or a significant commercial or industrial development. This will dictate the scale of development needed, which affects the budget and level of effort required.
It will also affect the type of municipal zoning required. A residential lot is treated differently from an industrial one, so you must understand the various options before moving forward.
4. Should You Buy Land Now and Wait for Development?
As long as you have the resources to hang on to a raw property for a while, holding land for future development is often a good idea. This can be especially true if:
- You cannot afford the proper development of the land at this time. If this is the case, it can often make sense to buy raw land and develop it later.
- You are waiting for an improvement in the economy. In many cases, real estate markets start with commercial properties before they do residential ones.
5. How Do I Get Started Developing My Land?
Developing land is a complicated but exciting endeavour. If you’re considering developing land, consider several factors before getting started.
- While it may seem obvious, the first step in developing land is to review zoning rules and determine whether your desired project is permitted.
- Find a reliable builder. The success of any project depends on finding a good contractor who will help turn your vision into reality.
Before developing a piece of land, there are several factors to consider. The temptation to make a quick profit may be great, but the consequences can be far-reaching and long-lasting, so making a sound investment is vital. The six key points above guide you before beginning your venture into the development world, but don’t stop here before settling on a specific piece of land for your project. Consider seeking advice from industry experts like Stefan Soloviev.