Buying Property to Build
Tuesday, July 29, 2008 at 11:16AM The ideal piece of land cannot be purchased without due diligence. Say you notice a lot for sale in a suburban area that looks like a perfect place to build your dream home. Buying undeveloped land can provide an opportunity to build a house that will meet your needs, but ou will need certain information before you sign on the dotted line.
Most suburban areas have zoning regulations which govern the type of structure that can be erected, the dimensions, and even the material used on the exterior. Historic preservation groups work with builders in many areas to ensure that any new constuction fits in with the existing buildings. If you want to build out of the city limits, check the availability of public utility services and the cost of bringing those services to the site. Local planning and zoning boards can provide you with information about proposed development that could change your quiet country lane into a busy street.
It is a good idea to consult an architect and a zoning expert to confirm that your vision will work on the property you have selected.
Reader Comments (2)
The Real Estate Market Starts Climing Again
During the past couple of years we've all seen a tremendous change in real estate in the country.
This change actually has spread all over, businesses loosing money while gas prices are extremely high.
The real estate market has become a big issue for all of us out there, we've seen many homeowners loosing their homes and struggling to find a home to rent because of their credit.
What happen to us?
Remember the bubble 4 years ago?
That's exactly the answer, from years of prosperity and times of spending, traveling and investing in stocks and real estate, we are now experiencing another bubble but this time the bubble is going in a different direction and we are wondering what to do.
So real estate was going down and it's still going down, some economists say that it will get stable in 2 years from now.
The sellers market became a buyers market, and today we all know it by now.
Investors and renters that saved their money for better days to buy to make money are in the market today, that's making the real estate market busy.
Real estate agents that learn how to change with the market also learned how to make money from the changes, these real estate professionals are making lots of money and while we are all struggling for business they're making the business.
Today you can get a home directly from the banks for almost half the price.
I've seen homeowners that are so desperate that they're willing to give their homes for free, just come and take their loan and continue their payments.
On the other hand, investors are looking to buy homes in bulk, they can get homes $.50 on the dollar.
Some banks like bank of america and countrywide are selling hundreds of homes in bulk to investors at a discount prices.
So real estate agents are busy getting hundreds of listings and reo's from banks, then they're selling these homes at a low price to future homeowners and investors.
It's definitely a buyer's market like we had in the early 90's, so if you're an investor or a homeowner.
This is your time!
I totally agree with you about this market being the best to invest in. Here in central Indiana, we've got a lot of new construction being built. What I've seen here is that a lot of people who built 3 to 5 years ago didn't plan for tax increases. We pay taxes in arrears, so people who buy new construction live very tax cheap for 12 to 18 months. Also, many buyers got 3-2-1 buydowns on their interest rate. This would enable buyers to qualify for their new house with much less income. Combine the two (taxes increase and interest rates going up 3 points) and you have the reciepe for foreclosure and short sales.
Saavy investors are buying as much as they can now. Newer homes can often be bought for significantly less than it cost to build 4 years ago. Add to that that the rental market is much stronger now. (All the people who used to be able to buy if they could fog a mirror now can't get mortgages - hence the need for rental property.)
If you need to sell now, don't despair! Homes that are in the best condition and are priced fairly ARE selling. We've had numerous listings sell in less than 30 days, and some over list price. It's all in preparing your house for the market and being realistic with the price.
Thanks for your comments! We'd love to hear from you again soon!