Benefits of Purchasing Land

There’s a reason it’s called “real” estate. When you own the land, you have the foundation to dream, plan and build your new home when the time is right. Purchasing land is far more affordable compared to buying a property, particularly when you’re buying land now, to build on it later when you have a larger budget. This ensures that you won’t be priced out of the property market in the future. One of the key benefits of buying vacant land is that it is almost always cheaper than buying a property. Unlike buildings, which gradually fall into dilapidation if they are not maintained, vacant land will usually remain in the state in which you bought it unless an external force, like erosion or earthquake, has an impact on it.

Low maintenance

Another advantage of purchasing vacant land is the very low maintenance that is required, compared to keeping a property in good condition. You don’t need to worry about repair work, renovations or finding a plumber. Besides having to clear the area to keep the land in a reasonable state, there’s very little else you need to worry about. Vacant land also requires less of your time and less stress, making a land purchase a passive long-term investment purchase.

Appreciation

If purchased correctly, then your land could see significant appreciation. This usually happens if the land is in an undesirable area, but the area around it goes through some development and becomes a very desirable place to live. This is particularly true in areas that have been pointed out for development, which can lead to price hikes overnight. Tip; Purchase land one to five years before you plan to build. Pre-buying the land allows you to benefit from value appreciation, rather than paying that higher value later.

Although there are a great number of advantages of purchasing land, it’s also important to consider the difficulties. Firstly, you need to do your careful research and buy the land in a good location, one that might likely appreciate in the coming years. You don’t want to buy some land in the middle of nowhere, only to find out that you cannot sell it later and you’re stuck with it.

Buy the land. Build later. Either way, purchasing the land first with a view to the building later provides the opportunity to construct a home that accurately reflects your tastes, preferences, and lifestyle.