A Few Things to Consider before Buying a Vacant Lot
Location
Nothing is more important than location when you are purchasing a piece of property. For investments, do not buy land with no resale value. And if you are looking to build a house, be sure that you are allowed to build on the land. Before shopping for a lot, develop a general idea of where you would like to build your home by considering access to schools, employment, grocery shopping, amenities, etc. When you are shopping for land, you are also shopping for a community. Go for drives, and use online resources to help you make your decision.
Being aware of all costs involved
Even though purchasing title insurance is optional when applying for a bank loan or a mortgage to buy property, it is something to consider. It protects homeowners and lenders against “challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title, which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.” (RBC Royal Bank Mortgages).
Another possible cost could be a land survey if the lot you are interested in has not been recently surveyed for the planning, mapping, and defining the legal boundaries of the land ownership. However, since the costs of surveys vary depending on location, the internet is a great resource to explore options and provide a general idea of the cost.
Finally, you may have to pay for utilities (electricity and water) even before construction of your home is completed.
Zoning Restrictions
Make sure you are allowed to build your home on a lot even before buying it and trying to begin construction. Zoning laws govern what can or cannot be done with land. Also be sure to be aware of the long-term land use plans, such as road additions, that dictates future construction around your new home.
Installing Utilities
When construction begins, you will want to install utilities (electric for power, gas for heat, phone lines for communication, wells and septic systems for water and sewage, etc.) for your new home, if it is not already installed in the vacant lot. This will also add to the building costs.
Building infill homes is a rising trend in inner city Calgary because of the location, and accessibility to amenities and existing utilities, that end up in considerable savings. If you have any questions about building a home, contact your luxury home builder Sunset Homes to speak to our team of knowledgable professionals.
