It is a new year (2021) and I thought I should begin with the most important information everyone should know before we start actualizing our resolutions. I was going through Twitter and, among the things, most people are talking about their biggest goal this year being investing in land.
There is no doubt that a majority of these people, if not all, are first-time land buyers. Other than land being the most rewarding asset to acquire, it also has the highest risk factor. To avoid the risk, you need to know your way around the business. Be ready to learn from those experienced in the business. Buying land as an individual can be a very risky affair since you can easily fall into the hands of predators out to feast on your hard-earned cash.
So, one of the biggest things you need to do is to use a trusted partner to buy land. This can be an individual you know well who works in the real estate business or a trusted firm that deals in real estate like Fanaka Real Estate. One advantage of working with such entities is that you will always be guaranteed the best piece of land in the market and getting your title deed will be hustle-free.
Before making any payment for a piece of land, make sure you visit the physical location to ensure it suits your needs. In addition, make sure you see the title deed and then conduct a search at the local authorities’ land registry to ascertain the real owner of the property.
This will save you the trouble of being duped into buying someone else’s land. Most people have lost their hard-earned money by simply ignoring one of these steps. It’s highly advisable that you also make a point of getting to know the land’s ownership history and use.
Make sure you are ready for the other risks involved. You might purchase the land and hope to resell it after some time at a higher price, but when the time for the resell comes, the property may not sell.
You need to be prepared for such an eventuality, and what will happen in case things don’t go according to their initial plans. This is simply called an exit strategy, just in case it doesn’t work out as planned.
If it’s a home you want to set up, ensure you know the availability of utilities in the area.
I will finish with this one which should be the greatest of the advice I have given today: before you do any of the things I have mentioned above, make sure you have can afford to make the buy, and if not, at least have a plan on how you can raise the required amount for the piece of land.
There are many ways one can go about this; use your savings, take a bank loan, or have a payment plan with the seller on how you will pay the remaining amount.
Lastly, never make a one-off payment when buying land.
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