In the real estate arena, agents will often guide you towards buying a standalone residence, condo, or even a commercial place. While all three scenarios can represent appealing investments, what if you really want something a little different, and have the resources to start from scratch? In such a scenario, buying a tract of undeveloped land may be just what you’re looking for.
Indianapolis, Indiana, has long been touted as one of the nation’s most successful urban planning stories. Starting in the 1970’s, the city’s urban planning programs have fueled its transformation into a highly modern, structured metro area, and this is expected to ramp up even more with the Plan 2020 Bicentennial project. Part of this program’s zoning strategy includes identifying which residential lots are to be partitioned. In short, investing in a good-sized lot of undeveloped land through outfits such as the Tim O’Connor Team from Berkshire Hathaway Home Services could become a great option for people looking to purchase real estate.
Choosing the Location
Every aspiring homeowner searching for available real estate should remember that location is the key to their future success and quality of life on the property. While some parcels may be found in a gated community or an off-the-beaten-track locale, buyers must be sure that title to the land is clear. Even then, the entire property has to be fully inspected by a local land surveyor and environmental assessment specialist.
Sewage disposal and water access is often an issue when acquiring new property. The New York Times’ Jay Romano says that the soil must be positively tested for effective coverage if you plan to construct a self-contained waste-water treatment system such as a leach field. You will also need to consult the authorities on flood zones and wetlands proximity, as well as easement status. This information is important, particularly if the lot you’re interested in was originally part of a larger lot that was re-zoned.
Any plan to purchase property must include a review of your finances, and how much you can afford to pay upfront and what needs to be financed. C.J. Hughes of This Old House says most local lenders allow land-purchase loan applications, and are familiar with the surrounding area. Be advised that some lenders will require down payments of up to 50%, with full repayment expected in no more than 15 years.
Purchasing a large parcel of undeveloped land can help you realize your dream of home ownership, but you have to take that first step. Call your property dream team today, so you can discuss the type of land that best suits your wants and needs.
What to Look for When Buying Vacant Land, This Old House
Avoiding Pitfalls in Buying Raw Land, New York Times
Indianapolis offers impressive urban planning lessons for Cleveland, The Plain Dealer