Whether you're looking for a long-term hold or passive income, buying land can be a rewarding venture.
To ensure a successful and informed purchase,
it's crucial to consider the following factors:
1. Zoning Restrictions: Before making any commitments, check your county's zoning regulations to understand the permitted land uses and any restrictions that may affect your plans. Building a large shed or tiny home (typically under 200 sq. ft.) is a popular strategy, but make sure it complies with local ordinances.
2. Research the APN Number: Obtain the Assessor's Parcel Number (APN) for the property you're interested in. You can contact the county assessor's office or conduct an online search to gather essential information about the land.
3. Key Factors to Understand:
a. Restrictions: Familiarize yourself with any restrictions imposed on the property, such as building codes, covenants, or HOA regulations.
b. Servitude or Easements: Determine if there are any existing servitudes or easements that grant access or usage rights to others.
c. Recent Sales: Research recent sales of similar properties in the area to gauge the market value and make an informed purchase decision.
d. Flood Zone: Check if the land is located in a flood zone, which may impact insurance requirements and potential use.
e. Surveys Completed: Find out if the property has been surveyed to ensure accurate boundary lines and avoid any encroachments.
f. Neighbors: Gather information about neighboring properties to assess potential impacts on your investment.
g. Future Developments: Investigate upcoming developments in the area to gauge their influence on the property's value and attractiveness.
4. Usable Acres: Determine the amount of usable acreage on the property, considering factors such as topography, accessibility, and any areas unsuitable for development.
5. Utilities: Evaluate the availability of essential utilities such as water, electricity, and sewer/septic systems. Understanding the costs and feasibility of connecting to these services is vital for your investment plans.
6. Taxes: Research the property taxes associated with the land. Understand the current tax assessment and any potential tax increases that may affect your investment's overall profitability.
Additionally, ask yourself the following valuable questions:
- Are you a project manager or have experience in the business you have in mind for the land?
- Have you thoroughly considered the potential drawbacks and mistakes associated with your chosen venture?
- Do you have a phased approach for development, especially if you're buying raw land or planning a homestead?
By carefully considering these factors and asking yourself meaningful questions, you'll be well-prepared to make an informed and successful land purchase.
Remember, investing in land can be a rewarding opportunity, but it requires careful planning and due diligence.
If you have any further inquiries or need assistance, please feel free to reach out.
Hospitality and glamping business idea research for raw land.
artificial intelligence (a.i.) and Google searches were used by George Ohan to compile this information on July 17, 2023.
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