6 Common Mistakes Made When Buying a Plot of Land for Homebuilding !
Thursday Jul 14th, 2022
Planning to build a house and want the best return on investment?
Building a new home is a very niche business. If you plan to build a house for yourself / personal use and resell it in the near future, obviously, you expect significant profit after selling.
Here, you can find the six most common mistakes you should avoid ensuring your home is sold fast and for the top dollar.
1. Not analyzing the market condition in a particular area.
Understanding the chosen area's business condition/trade/market flow conditions is essential.
2. Buying in areas lacking reputable schools, sports clubs, or any unique types of entertainment such as golf or yacht clubs.
People like to live close to some unique place, even if they don't use it. And occasionally, there is a buyer who seeks that feature.
3. Buying a lot on a street with no new homes.
You might be interested in a neighborhood with new infrastructure, but for some odd reason, a few of those streets still have not been revitalized. Demolishing an old house and building a new one on this old street could give the house less value as its value can’t be compared to the surrounding area as it is singled out. This could reduce its market value and not perform as well as it could.
4. Buying the cheapest lot in the area.
Sometimes, builders believe they have saved money buying the cheapest lot. This is usually not the case. If, for example, lots with ravines or lots with a swimming pool are valuable in the area, a lot without them will be at a disadvantage.
5. Not considering proportions.
Keep your eyes open for the proportion of the lot.
You should keep in mind that if most of the lots in the area have a deep backyard and an expansive front yard, you should try to keep these proportional. A house with an un-proportional lot could be less valuable.
It is essential to visit the building department in the municipality and get all the available information about the lot you plan to buy. You may encounter unforeseen circumstances like an underground river in the backyard or some restriction on the type of dwelling allowed.
If you would like more information about how to buy the right lot for a building project, please call
416-735-3158 to arrange the time for a free, no-obligation consultation with me.