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Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business
Filed Under (Articles) by admin on 21-07-2006
These real questions on buying undeveloped land are answered by a US Master Builder and myself after receiving them from readers of my e-book,
“Residential Development Made Easy.”
Question 1.
What are some factors to bear in mind when purchasing undeveloped land for the
purposes of rezoning?
Master Builder & Developer’s Reply:
Study your Town Plan and see where your Council Planners want the physical growth direction to take place. Go and talk to the Planners - don’t ask them for their opinion - you might sue them in a few years time, so they won’t give you an opinion.
However they will talk about Councils plans for growth. Ask about utilities such as water, sewerage, roads etc. These are very costly and they will want growth to take place where existing utilities have capacity to handle the growth. This way if you acquire raw land for rezoning, you are working within the “thinking” of the local authority.
Be prepared to hold on the property for a long time. First thing to check before purchasing is to ensure it’s not part of or can be part of endangered species.
Then make sure that it was never part of or owned by a gas station, fuel company, salvage yard or had tire dumping. Also get expert tests. Make sure the land will allow for property
to be built on it.
Question 2.
What methods does the builder use to evaluate prospective parcels for development, and determine the price to be paid for the land? (Again, assume we have a basic
