Purchasing decisions are never simple, especially when it comes to significant investments like property. There are many critical factors to consider, elements to keep in mind, and steps to be taken. In addition to this already intimidating process are influencers attempting to persuade your decision. While this process will always have its set of challenges, there are ways to simplify the process for yourself.
When looking to invest in a property, you should always establish a clear set of reasons why you want to do so. By doing this, you will become aware of the magnitude of options available. Applying thoughtfulness to your purchasing behavior will lead to a more satisfying end result.
You are most likely looking to invest in property because of the following three reasons:
1) You need somewhere to live- The desire for security and stability for you and your loved ones has been a primitive need since the beginning of our existence. It is also a natural part of our life cycles. Whether you need to buy your first home with a painstakingly small budget or can finally provide your family with their dream house, everyone needs a home.
2) You want to invest- The savings are there, and you want to invest it into a steady asset. For many property owners, the homes they own are long-term investments and savings accounts. They get to see their asset grow while being able to generate a consistent income flow. Moreover, the option to move into the property you own is always on the table.
3) You’ve hit a great deal- Sometimes, the best opportunities present themselves in the most unexpected times. You might not be looking at properties but stumble upon a deal you cannot turn down. What you do with this investment is entirely up to you. Perhaps you are so fond of it that you decide to make it your new home. Or maybe it becomes the start of future property investments. Regardless of the purpose, if the benefits seem promising and the means are there, why not!
When to buy land and when to buy a home?
This remains a highly debatable question with no right or wrong answer. The outcome should simply be in line with your needs. When comparing land to a house, it becomes apparent that both have a great set of benefits. The only difference is that they serve different initial purposes, but most of the time lead to the same end-result- a structure on a foundation.
Various comparisons can be made between land and a house in terms of its investment viability, financing options, and development duration. However, in the following section, we will be looking at a more personal aspect of these two options – wanting a home to live in.
Home
Most often, a home is purchased because its elements resonate with the buyer. Being able to see what you have just spent your money on is psychologically reassuring. Unless you are planning to implement multiple structural or design changes, there are very few design limitations as you can view the house holistically. An already existing house provides a sense of comfort and security and encourages the buyer to visualize life in it. Most places are move-in-ready within a short period of time, making it much easier to anticipate certain processes’ duration.
Design changes and developments are also much easier to implement as the basic structure already exists. Making minor changes are often not as costly as having to start the process from nothing.
Despite these benefits, there are also some negative factors to be mindful of. You can never inspect every part of the house and always run the risk of unpleasant surprises. Water-leaks, pests and noisy neighbors are things you will only pick up once you live in the house. Moreover, you are limited to the current layout and structure of the house unless you are willing to deconstruct current architecture and redevelop it. These developments are often more costly than building something for the first time. This is often one of the biggest reason’s buyers prefer to develop their vision from the start.
Land
An untouched piece of land offers a blank canvas with often picturesque landscapes to envision your dream home. For highly creative minds and buyers with design and architectural passion, this is a perfect setting. With no visual and structural limitations, they have the opportunity to create a home precisely according to their specifications. This option is, however, not limited to the creative minded. Many buyers have a vision and collaborate with professionals to bring this vision to life in the form of a carefully constructed development.
Another exceptional advantage of land development is that you do not have to deal with the mess that the previous owners left. Faulty electricals, deteriorating plumbing and rising mold is hardly what any new homeowner wants to inherit. In addition, should you not want to develop your land right away after purchasing, potential deteriorations, theft or destruction do not rush you.
There are, of course, certain factors to be mindful of when developing a piece of land. The duration of such a project can be lengthy and time-consuming. Meticulous attention should be paid during each step of the process to ensure anticipated results. Despite the administrative functions of vacant land-development, the opportunities are limitless. With the right assistance, a masterpiece can be created that will provide long-lasting joy to its owners.
Investing in property has multiple benefits, but you need to determine the best purchase for you to ensure you maximize these benefits. Property comes in various forms, ranging from an undeveloped piece of land to a ready-to-move-in home. Somewhere in between also lies the partially built house waiting to be taken on as a renovation project. It is critical to determine the motivation behind your decision, as well as what you are expecting to get out of your property.