Buying land in the UK has been popular among new and established investors for some time.
The goal is to get on the country’s increasingly elusive property ladder by building a home in a desirable location. For others, it is about purchasing land to be sold at a profit, or with more extensive property development purposes in mind.
There are several key questions that should be asked by any prospective investor prior to committing to a land purchase anywhere in the UK.
Why do you want to buy land?
You need to have a defined objective in mind; buying land as something of an impulse purchase rarely breeds desirable outcomes. Along with having a defined objective in mind, you also need to ensure it is realistic and have fully considered how you intend to achieve it.
How much local research have you conducted?
Extensive research of the local market is paramount, particularly when purchasing land with the intention of generating profits. This will give you a clear indication of whether the sale price of the land is fair, along with the extent to which it is likely to prove profitable long-term. The services of an experienced local land agent can prove invaluable at this stage.
What kind of growth potential does the land have?
This is the same as considering the long-term desirability of any given location when purchasing a property. Research should be conducted into any planned or current projects that could influence the value and desirability of the land on sale. Examples of which could include new transport links, nearby property developments and any planned adjustments to local infrastructure.
In what kind of condition is the land?
It sounds obvious, but it is nonetheless essential to have the condition of the land scrutinised on an in-depth level; irrespective of how it looks on the surface there may be issues affecting the viability of your intended purpose. Examples include whether it is suitable for supporting the foundations of a building, whether the ground has been contaminated with chemicals etc.
Has the survey been conducted by a reputable and reliable professional?
Not all land surveyors can be trusted to provide the same high-quality, high-accuracy services. Some will simply breeze through the process and bill you accordingly, while others will check every possible detail with meticulous care and attention. Their advice will ultimately influence the decision you make, so you need a reliable and reputable professional in your corner.
Have I considered access rights?
Accessibility should also be considered aswell as whether or not shared access or a public right of way could influence its future development. This will be clarified and communicated by your surveyor as part of their comprehensive survey.
Why is the land on sale?
It is also important to question why the land has been put on the market in the first place. If it has such fantastic investment and development potential, why is it being sold for such an affordable price? Remember that when a plot of land is on sale for a price that seems too good to be true, it usually is.
Can you get the funding?
Finding the funds to complete a land purchase may be tricky depending on your track record and credit history, rather than go through a traditional lending stream you may want to consider development funding such as a fast bridging loan to complete the purchase.
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