Buying land can be a risky business if you don't know exactly what you are doing. However because of the rising prices of ready built houses, more and more people are turning to the self-build option. Before buying any plot of land you should consult a specialist land agent and do your background research as jumping in feet first could leave you with a worthless purchase.
The types of land for sale
Basically there are only two types of land � that with planning permission and that without and you'll find that there is a huge difference in price between the two. If you want a plot of land on which to build a house or other building then it may be worth spending the extra money and finding somewhere with existing planning permission as planning authorities can be very fickle about where you can and can't build new structures, and the decision-making process can be a long one. Buying land without planning permission is generally around five times cheaper, however because there is no guarantee that permission will ever be granted, you could be left with a plot of land on which you can't build the house of your dreams. It may be worth asking for a preliminary meeting with the planning authority before you make an offer on the land, to assess whether they think your proposed plans would be acceptable or not.
Buying land can also be seen as a speculative investment and many people are beginning to snap up what is known as Strategic Land. This type of land is often situated close to existing developments but at the time of buying it hasn't been granted any type of planning permission. You can buy plots of strategic land for around £20,000 with a view to keeping the land for a number of years or until the local authorities require more land for new housing and offer to buy your plot for, hopefully, many times what you paid for it! Unfortunately it may take years for the authorities to decide they need the land however it may be worth the long-term investment if you can afford it.
Finding land for sale
There are a number of ways available to find land for sale however first time buyers should seriously consider asking a specialist land agent for help as not all land is suitable for building purposes. A land agent will undoubtedly have a number of contacts and means of finding suitable land before it reaches the general public and so by using their services you may be able to find a quality plot of land before any other potential investors know about it. Land agents can also help with the intricacies of purchasing land and they will be able to arrange the various surveys and inspections that are needed.
If you'd rather do all this by yourself however, then the best place to look is in the local newspapers and on the internet for upcoming land auctions. This is considered to be a riskier option, especially if you are buying land for the first time and you don't know all of the ins and outs of the business. It is not uncommon for people, who see what they think is the perfect plot for their family home, to pay well over the odds for their land only to find out down the line that they can't build the house they want because of planning restrictions. If you do choose this route then it is important to arrange inspections and any necessary surveys well before the auction and, again, if the land doesn't have existing planning permission then it may also be worth making a few enquiries regarding your proposed plans.
Locating the perfect plot
If you are planning to build your own home then you will undoubtedly have a budget in mind and the last thing you want to do is pay too much for the land your home will stand on. As a guideline, it is suggested that your land budget accounts for around 35% of your total budget and so a £250,000 budget will allow you to spend around £87,000 on the land. Remember to bear in mind however that you will also have to pay for the land surveys, inspections and a solicitor to deal with things such as planning permission, boundary issues, access to the plot and title issues, all of which need to come out of the budget.
When choosing a plot of land you should also consider how easy it will be to get building materials to the work site and how much it will cost to have amenities such as gas, electricity, water and phone lines connected � it is all well and good to find a beautiful plot in the middle of the countryside with fantastic views, but if it costs you a large chunk of your budget simply getting the building materials there, then it may not be a practical move! You will also need to assess the actual plot and the surrounding land for hazards such as infilling, flooding potential and the overall incline of the land because problems such as these could cause the foundation works to become expensive and may hinder the delivery vehicles when building starts.
Conclusion
There are numerous things to consider before buying land and it is important that you consult a professional to ensure that things run smoothly, especially if you intend to build a house or other structure on the plot. Buying land without planning permission is the cheaper option and if you can spare the time to wait for the planning authorities to agree to your proposals, then this is probably the best way to go. However if you are in more of a rush to build, then it may be worth finding land with existing planning permission that suits your requirements. Either way, this is potentially a good option for getting the house you want in the exact location that you want it.
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