Home Arrow HOW TO BUY V A C A N T L A N D. I M P O R T A N T D O ’ S & D O N ’ T S YOU N E E D T O K N O W ( A G U I D E F O R N E W INVE S TORS )

HOW TO BUY V A C A N T L A N D. I M P O R T A N T D O ’ S & D O N ’ T S YOU N E E D T O K N O W ( A G U I D E F O R N E W INVE S TORS )

On The Surface

Finding and buying a piece of  vacant land sounds easier than  buying or building a house.
However, buying land can be  tricky and time-consuming for  many reasons. If you’re planning  on buying land, here’s whatyou  need to know before you start  scouring properties and how to  avoid making a big financial  mistake.

Why Buy Vacant Land

Staking a claim on vacant land and  raising a house is a Nigerian dream  that goes back hundreds of years.
Whether it’s to build a tiny house or a  larger dream home, some pioneering  spirits are willing to take a chance to  create exactly what they want. But not  everyone buys land with the intention  of building a house on it. Plenty of  people buy land for more  unconventional reasons.

Other People Buy Land  As an Investment

This is common in real estate  markets where land values  maintain a slow and steady climb upward.
Buying and holding on to land for two to three years can yield a solid  profit, especially if you do something to improve the land while you own it. However, this can be risky, especially  if the market takes an unexpected nose dive after your purchase.

Do's and Don'ts of Buying Vacant Land

Finding a great real estate agent is  imperative when you’re looking for  vacant land. A good agent from
Adriano Properties will educate you
about the area and research what each  parcel is zoned for and what it’s really worth. A great agent can also keep you
from making a financial mistake.

Understand Zoning Laws

Every town, city, and municipality has  zoning laws that regulate what land can and  can’t be used for. These laws protect every  landowner and homeowner’s investment  and ensure the area is growing in the right  direction. It’s important to understand  zoning laws so you buy land that’s zoned for  your desired purpose. Imagine you want to  buy some land and start a self-storage  business. You find the perfect-sized lot just  outside of a busy downtown, and you’re  ready to make an offer. However, the land is  zoned residential, not commercial, which  means you can’t legally operate a business  there.


Residential

Areas zoned residential allow single-family  homes, apartments, condos, duplexes and
co-ops. If you work at home, you may face  some restrictions in residential zones. If you
telecommute, you likely won’t have a problem.  However, if you have customers that come to  your home for business reasons or you employ  staff, you might find yourself in violation.

Don't Assume You'll Get a Bank Loan

Many banks won’t grant you a loan to  buy land. If you’re lucky enough to get  a loan, you might not be granted more  than 50% of the land’s value. Banks see  land as a risky investment, especially if  you plan to use it for unconventional  living or working arrangements. If  there’s no house on it, then it’s considered a red flag.

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