Finances: 5 Things You Should Know Before You Buy Land

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One of the key tactics when investing for the future is the acquisition of assets, more so fixed assets. One of the most sort out assets is land. Now while land is considered a solid investment, you need to know what to look out for in order to find what will serve you well. You need to do your diligence to ensure you get what you want. It is a long term investment and not something you can purchase then get rid off in a jiffy. Here are some things you should know to avoid ending up with underdeveloped land with numerous risks.

Know what you want and why

Just like everything in life, you have to know where you are going, to chart out your path. Figure out your purpose for choosing land as your investment of choice. Do you need it for commercial or agricultural purposes? What is your budget? Additionally, as you calculate your budget, include the finances you need to keep up with payments like tax obligations. Working out all these issues eases the workload moving forward.

Buying land. Image from https://www.constructionkenya.com/1033/buying-land-in-kenya/

Know the restrictions

Land is a deceptively complicated asset. Looks beautiful on the outside but hides a lot beneath the surface. Find out what restrictions are imposed on the land before you purchase it. For agriculture, carry out a soil test to determine how arable the land is.

You should also look into easement. These is the legal right of someone to use your land for a specific purpose. For example, KPLC has the right to use your land due to the cable lines that pass through it. There are various forms of easement and is important you make yourself aware of those that pertain to your land you are unaware of some of these conditions before you acquire the land, it may disrupt the ideas you had for it.

Know your surroundings

When you move into a new house, it’s important to know who your neighbours are. Get to know the surrounding real estate. Figure out if your neighbours affect you now or in the future. For example. It can be hard to build a spa in a school zone. Schools can get a little noisy due to the activity. These details also determine your resale value when you decide to sell. Surveying the area is the only way to know if the land is a good fit for you. There is no use in purchasing land that will end up being cumbersome in the long run. Lifestyle: Home Buyers Guide To Buying A New Home

Find out what are the available utilities

Whether you are purchasing land for commercial or agricultural purposes, it is very important you understand what amenities are available. These include things like water, electricity, internet connection, and sewerage facilities. You can not run a commercial business without proper sewerage systems. Additionally, if you need to seek out bank financing for a project on that piece of land, these details are very important.

Zoning

This is land regulation that permits various extents of use based on map zones which separate land from one piece to another. Zoning regulates issues such as building height, plot coverage, and ratio. There are different variations of these regulations. This is done to protect already established business or residents from harm due to upcoming developments.

Zones in the country are divided into commercial and industrial zones. Commercial zones have office blocks and businesses. Industrial zones have manufacturing shops and plants. Knowing what zone you want to operate under help in deciding where to buy your land. Future changes also affect your property. It is best to consult a housing finance expert to help you understand all the nitty gritties.

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