Are you thinking of buying land to build on, and perhaps create something wonderful for your family and future generations? This could be a fantastic idea for the right person, but buying land is not for everybody. There are many considerations to make when it comes to buying land, so here, we’re going to break down the pros and cons for you.
Pro – You Have More Control Over your Destiny
When you decide to buy land, whatever the reason, you’re completely in charge. You make the decisions, and don’t have to worry about land-rent contracts or terminations.
You have the opportunity to make improvements, build something you can really use and enjoy, and will potentially increase the overall value of the land in the future. Have a look here for perhaps a little more inspiration on what you can do with your own land.
Con – Buying Options For Land Are Limited
At the moment, buying options for land are limited.
There isn’t all that much land out there to buy, and so you might not find something that’s just right for what you want it for. You shouldn’t just buy land for the sake of it – you need to make sure it’s suitable for the plans you have in mind.
Pro – You Have The Opportunity To Make More Money In The Future
If you make some good decisions regarding the land, you have the opportunity to make more money in the future. Once planning permission has been approved on your land then you will likely see a significant increase in its value.
You can then choose to self-build, and potentially sell on for a larger profit, or you could sell the land with planning permission. The latter will still help you to make a little money, although not as large of a profit.
Con – Land Is Expensive
If it was easy to buy land then everybody would be doing it. Financing can be hard to obtain, with a lot of paperwork in place. Not only that, land is expensive. It can tie up your available capital and reduce your cash flow significantly.
Pro – You Can Treat It As An Investment
If you’re interested in making the right investments for your future, buying land could mean long term appreciation, allowing you to build equity.
Con – More Responsibility And Potential Issues
Before buying land, you need to be aware of the responsibility and potential issues you’ll be expected to take on. You’ll need to consider water, soil, environmental, and any zoning issues that could crop up. Planning permission is essential for both residential and business accommodation.
The process is never fast, either, so you could be waiting a while for certain things to get approved.
Buying land is a huge decision to make and not the right decision for everyone. However, if you know exactly why you want it and you’re confident you can make it happen, it could be the right decision for you.