Re: Purchasing Land - Posted by RR
Posted by RR on January 26, 2008 at 10:38:34:
In most cases you never want to purchase vacant land unless you plan on building on it or utilizing it in some other manner right away. Buying a piece of vacant land thinking that you will someday build a getaway vacation home or something like that seems like a decent idea, but most peoply who buy in these cases don’t ever build on them because future circumstances, relocations, loss of job, health or financial hardships, etc., get in the way and they never build on it. Meanwhile you are paying a mortgage on this site plus property taxes twice a year for a site that you aren’t currently using and may never use. In addition, if you decide to sell the lot or worse, need to sell the lot for financial reasons, the lot may prove difficult of impossible to sell. Most vacant lots that people put on the market to sell, unless it is in an area that is growing rapidly, sit on the market for YEARS without ever getting any offers and the value of the land, in most cases doesn’t appreciate in value. Unless of course the area is becoming a hot area.
Likely, renting the lot is not going to happen because the land you are buying may be far removed from the lake or other local amenities and most campers will prefer to camp in established campsites.
The other precaution, assuming that you are considering someday building a home on this site, is to investigate cost to build on this site. Can you get public utilities their, will the site accomodate a septic or other waste system, are there restrictions on building there (if it is in a national forest area there may be), etc. You may find that buying an already built home in the area is less expensive than building your own.
So if I didn’t dissuade you enough, good luck, but my suggestion is that you clearly understand why you want to buy here, and what your intentions and timeline for using the site are. You should also contact other homeowner’s who have purchased land in this area prior, hopefully from the same company, and ask them if they regretted their purchase. The company you buy from should be able to provide you a list of previous buyers. If they are unwilling, watch out. Of course they may only supply you with people who will give glowing recommendations.