If owning a rural property appeals to you, you’re not alone. Buying land for the first time is an exciting moment in anyone’s life, and you’re likely looking forward to the fresh air, adventure, and endless possibilities that come along with it. Of course, buying land for the first time isn’t always straightforward, especially if it has never been used as a residential property (or hasn’t been used as one for years!). In this article, we take you through 3 mistakes to avoid when buying land, so you can avoid the possible pitfalls that come along with purchasing your dream acreage.
Not Checking Zoning Requirements
There are several good reasons for checking the zoning requirements on a property before you purchase it. If you are purchasing land intending to build a house on it, zoning by-laws will have something to say about it. Zoning by-laws set out the kind of buildings that can be built, as well as the sizes they can be, and where they are allowed to be located on your property. Thinking of building a tiny house? Your property’s by-laws may not permit it.
RuralOnly.com tells us more about the importance of checking zoning requirements before purchasing a plot of land:
“When you’re planning to use the site for business, make sure the property’s zoned for that industry. Some municipalities keep hotel-type businesses a required distance from residential areas, so you have to make sure all your plans will work with the legal restrictions of the area.”
Other ordinances and mandates can include strange rules you’re not familiar with, like having to build a seawall if you are close to the water, or to build far enough back from the property’s edge.”
Accepting High-Interest Rates That Increase the Land’s Price
If you require a loan for buying your land, it’s important that you shop around for lenders in order to secure the best interest rate. While it may be tempting to go with the first lender that approves you, you may also get offered an interest rate that is substantially higher than you could get offered elsewhere. If you put in the extra effort to find a low interest rate, you may end up saving a substantial amount of money in the long run.
Realtors Land Institute explains why it’s important to shop around for the lowest interests rate when taking out a loan for your property:
“Land loans usually have short repayment schedules, so you will need to repay the lender within five years. Let’s say you borrow $100,000 at 3% interest. At the end of five years, you will have spent about $7,812 on interest. At 6%, the total interest comes to nearly $16,000. The extra 3% more than doubles your interest payments. Fight for a lower interest rate when buying land. Otherwise, you will find it much more difficult to repay the loan or earn a profit from the property.”
Skipping on Hiring a Real Estate Expert
Want to save money by skipping on hiring a real estate expert? This may end up costing you much more in the long run. Not only can real estate experts help you save far more money in the long run, but they’ll be able to take a significant amount of stress out of the process of purchasing land.
MakeTheirDay.com tells us more on why hiring a real estate expert will help save on costs:
“On the one hand, doing the land hunting and buying yourself instead of hiring a real estate agent can save you money. However, not hiring a real estate expert can also cost you a lot in the long run. After all, these people are considered “experts” in the field, which means they can help you with your concerns about real estate.”
Are you ready to purchase your first acreage? With over 30 years of experience representing buyers and sellers in the British Columbia market, we can help you find available properties in your price range that suit your needs. Contact Cascadia Pacific Realty, Ltd today to get started!