Purchasing land is a significant choice that must be followed by thorough analyses and assessments. If the buyer is aware of all the elements of the transfer of ownership that need to be taken into consideration, an outstanding and rapid purchase will only be possible. This is frequently not the case, and finding all the data that will serve as a guide when purchasing land can sometimes be difficult.Â
To that end, by outlining the important factors that should be taken into account while purchasing land, this article will help you learn 4 useful things you should know!Â
Get a thorough urban regulation scheme
Although property is occasionally purchased for agricultural purposes, the construction of a house, business, or other facility is increasingly the intended use. It is essential to determine whether development is even feasible and anticipated if the land is purchased with the intention of building on it. Later revisions to the bought land could be both legally and practically difficult if this is neglected and it is not noticed in time that there is no urban plan.Â
In other words, it’s crucial to determine whether construction can even take place on the land if the buyer intends to build anything there, be it a house or anything else. This is because later alterations to that property could not be possible legally if it turns out that building is not possible on that land.Â
To that end, every local service and government can provide information on whether the land under consideration has a detailed regulatory plan or an urban plan. A specific response on the viability and potential of building on the land, as well as in what scope and area such construction are conceivable, is acquired by analyzing the full graphic and textual contents in cooperation with the construction specialists of the appropriate institutions.
In sum, you should first determine if and what you can even build on the land before purchasing it. Otherwise, you may find yourself in a situation where you are stuck with the land and most likely won’t be able to lawfully build anything.
Taxation
In the US, for example (for all our OFW followers there), the amount of land tax you pay is decided according to the value of all liable property you own. As soon as the value of the land owned by you passes this exemption threshold, you will be charged a base sum, and on top of that a certain percentage amount for every dollar of your land’s total value above that threshold.Â
When it comes to tax purposes, in most cases, your land will be valued by your state or local council. For these land taxes, you will most probably have to pay anything from several hundred dollars up to a few thousand dollars.Â
Therefore, it is useful to check with your local government office to find out more information on how land purchases will affect your tax obligations. Once you do a land tax assessment, you will have a clearer idea in your mind of how profitable your land purchase actually is. This way, you can prevent any losses in terms of taxation. Â
Land’s location
It is impossible to overstate the significance of the location of your future land. When it comes to property ownership, there are many different variables that affect how much it will ultimately cost. With so many factors that might potentially impact how precious and profitable one area, in particular, becomes, it is important to carefully consider the location of the land you are buying.Â
That is, bear in mind the fact of how close the land is to parks, public transport, hospitals, schools, stores, etc. All this may increase the value of the land later and even ensure a great return of funds for years to come since these variables assure ongoing profitability in the area.Â
Get the legal obligations done for both parties
It’s important to know ahead of time what papers you’ll need to sign in order for the purchase to be as effective, quick, and successful as possible. For example, a declaration on the waiver of other users’ rights of pre-emption is something that is necessary but without which it is difficult to simply acquire a parcel of land.
This statement is necessary for the sale to be completed since all users have the right to declare that they may desire to purchase the license for an agreed-upon price, use it, or construct on it. Additionally, there is no chance for you to be the one to exercise your rights if someone else already does. So, to ensure your protection and the ability to acquire land, it is crucial that all other users waive their rights to the land they are selling in a documented and timely manner.Â
Hopefully, these tips will help you in the process of purchasing land!
Need a real estate agent for this? Read our article about what to look for in a Real Estate Agent.
Jhona has been active in the Real Estate Market in the Philippines for the last 17 years. She’s a real estate Consultant, Property Manager, and Broker dealing with various developers all across the country.
