Home Improvement

What to Do Before Buying Land?

Real estate has always been known as a safe, low-risk investment. A teacher used to say: “The land does not spoil like a tomato, nor does it go out of style like clothes.”… Another said: “It is not a business of head, but of patience.” 

Both were very right, it is not a risk business where you can lose all your investment, nor something that requires studies in quantum physics to understand; But it is a business where you can not be in a hurry, and the ticket to enter the game is quite high. 

The amounts of investment in real estate are not a game, and therefore, it is necessary to do a good ” due diligence ” before buying.

Considerations you should know:

Legal : We must understand the real possession of the land, that is, if it is in the name of several people, that all are aware and agree. That it is free of lien; up to date with their tax payments, registered with the Public Registry of Property, etc… Those are some simple requirements, but any lack can bring down the operation.

Guidelines : Not all lands have the same permits, even in the same area the permit may vary depending on the size, or where it has its frontage, previously acquired rights, restricted land uses, etc. 

If you have a use in mind, it is important to review the feasibility in Urban Development.

Value : It is important to have a real appraisal of the land. Many can leave with the feint of the value of their land for what they have sold to someone close, but your land may have some limitation. 

It is important to carry out a comparative analysis, by residual value, by replacement cost, and by market value.

Restrictions : There are lands where construction is not allowed, in part or all of the land; Incredibly, there are people who sell them as if they were, and the problem comes when asking for a permit. 

Slopes above 45 degrees, water damage, national parks, and road damage are just some of the hidden features that can make your project unfeasible.

In short, it is a matter of a little more experience than knowledge. It is important to approach people who dominate the subject so as not to be surprised. The amounts of investment in real estate are high, and any error or omission is expensive.

At vsconstructions we have advised our clients when buying and selling, knowing the aspects that affect the value and potential of each piece of land. If you plan to buy, sell or contribute some land, we can gladly guide you.

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