As an urban dweller, you’ve probably thought about how it would feel living outside the city limits. As much as it is a scary proposition, there could be benefits of buying land to build your dream home. Land costs have dropped significantly over the last couple of decades.
All it takes is to go through Reward Homes exclusive house and land packages to have a feel of what you could get should you decide to go through that route. One of the biggest challenges to buying land in the country is the closing element. It could even be tougher trying to obtain a mortgage for your dream home. It is important that you also look at the drawbacks of buying land before you commit financially.
Renting Before Buying
It will be a good idea to rent a house before you can think about purchasing the land. This is particularly important if you’re not familiar with the area you intend to build the house. When you rent, you get to interact with the community to have a sense of the area. It is then you can decide if it is the right environment for you and your family. There are some neighbors who might not be too happy when a stranger is settling in their midst. Resale value is smaller in the country compared to the city because there are not a lot of potential buyers.
Construction Loan
A construction loan could be the best option if you’ve found a piece of land that you like and you’d like to construct a house. You could look for short-term loans so that the funds are dispersed periodically depending on the stages of the construction. It should be noted that construction loans can be a challenge to obtain and usually involve a ton of paperwork. The home plans should be as detailed as possible to improve the chances of securing the loan.
Buildable Land
Building on vacant land is not a straightforward process. There are lots that are buildable while others are not and this should be the first consideration to have in mind when searching for land. Zoning ordinances, subdivision regulations, permits, and building codes are some of the challenges that you will face.
The health, state, and federal regulations will also have to be taken into consideration. That it is why it is important you do your homework before you buy any piece of land.
Building Permit
After finding out if the lot is buildable, you’ll need to discuss with the local municipality on all the permits that you will require for the construction project. The jurisdiction will vary from one city to another. In almost all cases, there is a standard practice to be followed. You will need to consult with a building inspector before you break ground for your new home. You can check out these professionals at your local courthouse. Make sure you’re working with someone who is reputable and experienced with job.
Land Clearance
One of the challenges will have to do with the land itself. A land with a lot of trees and vegetation will need to be cleared before any work commences. This could potentially inflate the total cost of the project depending on the landscape.
Weighing the Options
You’re likely to face the question on whether buying or constructing is the best option for your budget. New construction and a modular home are the same standards when it comes to long-term value. It will be challenging to have a modular home delivered if it is a rural setting. You should discuss the cost implications before you make a decision.
Utility Services
This could be easily overlooked as there is a common assumption that utility services are readily available regardless of the location. There could be a problem with the water table. This means that digging a well will not be possible if you don’t want to rely on municipal water services.
It could also be expensive to bring electricity and cable services to the newly constructed house. A propane tank might be a necessity depending on the circumstances of the availability of essential utility services.
In most cases, you will pay for the land in cash because getting a loan for such a purchase can be a tricky endeavor. There is a chance that your loan could be approved if it is near utility services and there are not a lot of extra expenses when building the house.
