Investing in land to build property on can be a very profitable investment, whether you are building holiday accommodation, apartments or a single residential property. However, the profits are only achievable if the planning is well executed, and this is why a lot of research is required before buying land for the first time.
If you are considering investing in land to build property on or for another type of investment strategy, there are several important factors to consider. You do not want to end up in the position where you have bought land that you cannot build on and that you struggle to sell or have to sell at a loss.
These are some of the questions you should ask before buying land:
Is existing planning permission in place?
If you are buying from an estate agent, they will usually include details of any planning permission in their advertisement of the plot of land. If not, ask them whether there is any existing planning permission.
You can also check planning permission applications on the gov.uk website by entering the address into the Planning and Building Control section. Planning permissions have set dates, so there may be planning permission on a property, but you would need to move fast to build on it before it expires.
Getting planning permission can be a difficult process and many applications get turned down. You can check whether planning permission for your type of property is generally approved in the local area before you invest in the land.
It could be on a floodplain or be liable to subsidence, so you should get a surveyor to inspect the ground before you buy the land. Otherwise, you might find you cannot use the land how you intended, even if you got planning permission.
What is the history of the land?
You should find out as much as possible about what the land has previously been used for and whether the ground may have been contaminated with chemicals. If possible, find out why the current owner wants to sell the land.
What is the condition of the ground?
You need to make sure that the ground is suitable for the building plans you have. For example, it could be very rocky and could cause issues for building foundations. It could be on a floodplain or be liable to subsidence, so you should get a surveyor to inspect the ground before you buy the land.
Does the land have water connection and sewerage?
If the land does not already have water connection and sewerage, getting these arranged can cost a significant amount of money and could impact whether you are able to profit from building on the property. The costs can vary depending on the specific site location and geology.
Is there good access to the site?
You will also need to make sure that there is public access to the land and that there is no area of land owned by someone else that you need to use in order to access public roads. You could end up paying extra money to get access approved for people living at the property when it is built.
Other potential issues when investing in land
A surveyor should be able to identify any key issues that are visible on the site, but you may also need to get a conveyancer to do checks on the land like environmental and coal mining searches. There may be some issues like tree preservation or wildlife habitat that will prevent you from being able to use the land how you intended to.
These are just a few of the factors that could impact whether you should invest in land for property investment and the process of doing the necessary checks can be time consuming and frustrating.
Advantage Investment is experienced in finding land that is suitable for building on and that will not have hidden extra costs or obstacles to overcome. We offer a wide range of property investment opportunities, including off plan properties, completed properties and land if that is what you are looking for.
Get in touch today
We specialise in helping experienced investors, overseas investors and new investors, using our industry expertise to identify the most lucrative property investment opportunities. As well as finding land that is suitable for building residential or commercial properties on, we also identify opportunities for building holiday resorts in ideal locations, to generate high rent yields.
If you are looking for your next property investment and want to work with experts who can help make your money work harder, get in touch with our team and we can discuss your investment goals and get started on making healthy profits.
Call 0151 433 9300 or book a free, no-obligation consultation by completing the short form above
