Popular Mistakes People Make While Buying Land

Land ownership can be a great investment, as long as you enter the deal with awareness of all of the risks and pitfalls.

By conducting careful research, investors can take advantage of low property prices and purchase land that will be worth much more down the road.

Before i tell you the common mistakes that makes people loose money while purchasing land, i would also like to summarize most of the land related questions that my readers have been asking concerning the same topic.

Below are summarized Q & A concerning land matters:

Is it better to buy land or property?
If the current housing market just isn’t offering what you need, then purchasing land and having your own home built according to your specifications may be a much more viable option.
Buying rural land also affords you more freedom and less intrusion from nearby neighbors and costly HOAs.
Why Buying land is a bad investment?
Most knowledgeable real estate investors agree buying land is not a good idea. There’s just way too much risk. …
Most knowledgeable real estate investors will agree buying land is not a good idea, and this includes buying small and/or potentially investing in a large land deal. There’s just way too much risk.
Do you pay taxes on land you own?
Property taxes are based on the assessed value of your land and any buildings on it. As long as you own the propertyyou continue to pay real estate taxes or land rates.
Is buying land and building a house cheaper?
Whilst building a brand new home can take some time, and you’ll have to budget for more than the cost of the land and the build.
It can still end up being cheaper than buying an existing house.
How can I make money with 10 acres?
Ways to Make Money Off Your Land Almost Immediately
  1. Rent plots to groups looking to build a community garden. …
  2. Start blogging about your newest farming adventures. …
  3. Sell local honey at farmers markets. …
  4. Sell plant seeds online. …
  5. Offer indoor or outdoor storage. …
  6. Create fishing lakes or ponds for local fisherman or groups to rent. AND many more things. You can consult your property manager on the best venture to take depending with the niche.
Can I buy land and not build on it?
The benefits of investing in land can be substantial but only if you play your cards right. Land (raw land) refers to undeveloped land usually without a property built on it.
If you’re not building, banks see it as a “speculative investment” and may not approve your home loan. Discover how to qualify.
What should I check before buying land?
6 Things to Consider Before Buying Land to Build on
  • Location. The absolute most important factor to consider before buying land is its location. …
  • Property Setbacks. …
  • Zoning Requirements. …
  • Natural Hazards. …
  • Easements. …
  • Utility Sources. ETC
How long does it take to buy a land?
Typically a land loan appraisal is between 2 to 4 weeks. It is not uncommon however, to sometimes have to wait as long as 6 to 8 weeks for a land appraisal to be completed. 3.
The title work usually does not require more than a week to complete and be ready for closing. However, it might take longer in some countries. Check out with your country land department.
How long does a land sale take?
Is there a typical time frame between offer and closing? Lewis: Well, between offer and closing is going to vary, depending on your negotiation time.
So, between buyer and seller actually agreeing and actually getting a contract, until closing, that varies between 30 and 90 days, usually, in my experience.
What are the risks of buying land? Environmental Issues!

A third risk of buying raw land is you do not know what lies beneath the soil. You could encounter high levels of radon or asbestos.
The soil could be unstable and unfit to build on. If you build on soil that is not stable, it could cause the foundation of your property to crack.
How does buying land to build a house work? Construction Loans

If you already own the land, you may be able to use equity as collateral for the loan. If you’re using the construction loan to purchase the lot and build the home, the closing of the land purchase and the construction loan will take place at the same time.@ Denis hope i got your question right!
What is the cheapest type of house to build? Contemporary House Design for a Narrow Lot

The cheapest house to build doesn’t have to be small. With two stories of living space, this contemporary house plan would work great on a narrow lot.
The super-simple design and open floor plan give you a spacious feeling, while cutting back on costs.
Does land ever lose value?
Land, although a tangible fixed asset, does not depreciate. Land cannot get deteriorated in its physical condition; hence we cannot determine its useful life. It is almost impossible to calculate land depreciation.
The value of land is not constant on a long-term basis – it may enhance or may as well deteriorate.
How can I make money by buying land? How to Make Money Buying Land Using These 7 Ideas
  1. Sell the land. You can hold on to the land and sell it in the future. …
  2. Boat storage. A simple way to make money off of your land is to allow others to use it for storage. …
  3. Foresting the timber. …
  4. RV storage. …
  5. Campground. …
  6. Solar energy. …
  7. Horse stables.

 

Is it smart to buy a lot of land?
Zillow Tools. Most knowledgeable real estate investors will agree that buying land is not a good idea.
There’s just way too much risk. … Most knowledgeable real estate investors will agree that buying land is not a good idea, and this includes buying small parcels of land and/or potentially investing in a large land deal.
Can you build a home for 50k?
Yes, it’s definitely possible. Without the benefit of financing, you can still build a basic 3 bed/2 bath house around 1000 sqft to code for that much in rural areas or even a little larger in the most undeveloped areas.
With financing, you can build a 4 bed/3 bath house around 2500 sqft.
What size house can you build on 1 acre?
You could technically fit almost 44 single-family homes on an acre (assuming each house is 1000 sq ft per floor and there is no space between them).
However, in practice, you get an average of between 2-3 single-family homes built per acre in most subdivision building lots.
Why do you pay taxes on land you own?
Yes, your real estate taxes are based on the value of both your land and home and any other structure you have on your property.
The value is adjusted annually. You will also owe the tax even if you no longer owe any money for the land or home you built. This is how your local government will be able to continue providing essential services to the area where your land is located such as electricity, roads, security , sewerages etc.
Is buying land profitable?
While it may not be the most glamorous real estate investment, buying raw land can be a good investment.. if you understand how to invest in land properly like a real estate developer. 
Land investments can produce high returns, passive income, and large profit margins.

More women are investing in Land which is a very good thing. However, remember statistics show 8 out of 10 people get conned while buying land.

Here are the most common mistakes people make while buying Land in Kenya;

 

1. Failing to secure a copy of the Original title deed from the seller: Remember this the way you will know the original owner of the Land, the acreage and whether the land is encumbered.

 

2. Failing to conduct an official search at the Land registry: This is the best way to know the status of the land. However most people skip this part.

 

3. Failing to do a land visit of the land they intend to buy: I know you have heard stories of people who have bought land that is full of rocks or does not even exist.

4. Failing to involve the right professionals in the land buying process.

 

5. Failing to do the necessary research or conduct due diligence:

Remember Leaseholds reverts back to the government after 99 years if it is not reapplied for by the original owner.

Ensure you do your research to avoid buying Land that has reverted back to the government.

 

6. Dealing with brokers instead of seeking out the actual land owners.

 

7. Assuming that sellers from the village or remote arrears cannot be cons: There is a reason 8 out of 10 people buying Land in Kenya get conned.

 

8. Paying the whole purchase price of the land from the beginning: There is a reason the law stipulates you pay 10%at the beginning then the rest in 90 days.

 

9. Hurrying the land Buying process: Again there is the reason the law gives a completion period of 90 days.

 

10. Failing to secure a spousal consent: A spousal consent is required both for obtaining a Land Control Board consent and transfer.

So ensure the spouse is in agreement with the transaction from the beginning. This is for married sellers of course.

CONCLUSION

for sale sign

Land Searches and inspection of the title, Preparation of offers and price negotiation, Sale agreement and deposit payment, Payment of land rates, Transfer documents and consent to the transfer, Payment of Stamp Duty, Registration of transfer, Exchange of documents, should always involved your most trusted lawyer(s) and a family person who is of trustworthy to you to help you throughout the entire process.

It will be more blessing if your kids or spouse(s) get involved too from the beginning. This will help to avoid try and errors which might be a life regrettable mistakes. Don’t be the next victim on the line.

No matter how the seller looks genuine or you have known him or her, just always know money and property knows no friendship or blood: it can be your dead wish too if mishandled.

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