There are several houses available in the market, ready to be sold to the next best buyer. But there’s also another option of buying a plot. Some people prefer to buy a fully constructed home while some opt for getting the land first, and then building their dream home. Either way, you get to have a roof over your head.
But, the big question is which one is the better option? Is building a home the most viable option? Or is acquiring the land the first concern? If you are planning to get a property under your name, be it a home or land, this blog will help you decide to choose the right option.
Find the land
You might be one of those buyers, who prefer to build a home. Even then you need to acquire the plot first right? Location is a primary concern in both cases.
You may find a beautiful home ready to move in at a prime spot in Lahore smart city, but you can also get a plot of your choice there instead. Depending on your requirement at the time, you can go in either direction. You can find the right location with the help of online listing platforms. Agents can guide you to find the right type of property. Land listings are usually posted by real estate agents (from the seller’s side). You can tap the budget filter for property sales. But you should also consider the neighborhood’s utility and road network among other factors.
Discuss the zones
Let’s say you found the perfect location to buy the property. Now you need to identify what that property can be used for or what type of structure can be built on that plot. Therefore, inquire about the zoning office’s details, especially if it’s a residential housing society. Sometimes, a certain plot is reserved and cannot be occupied for several reasons.
Think about soil testing
You must perform a percolation test if the property does not have a sewer infrastructure. This will make it easier for you to comprehend how quickly water drains before a sewage system is put in place. Other kinds of soil tests can determine whether the earth is stable enough to sustain a house and whether dangerous chemicals like lead or arsenic are present. Additionally, you must know the best way to acquire well water.
Verify permit approvals
Before any work can start, the majority of localities demand the approval of a construction permit. Before you purchase the land, consult a builder. Make sure your designs adhere to zoning regulations and local laws so that you may receive approval to begin the project. Be prepared to wait since obtaining this approval may take several months.
Create a group of experts
Prior to purchasing the property, you must put your team together. You can learn how to assess prices and create simple designs with the team’s assistance. You can use that information to determine if you would be better off waiting for the ideal foreclosure or cheap listing to come on the market or buying land and building. Experienced contractors, such as masons, carpenters, and builders, will also be aware of the current cost of supplies. You should then add a 30 percent premium to account for unforeseen mistakes or modifications.
You must use a local, qualified architect or architectural designer. Additionally, if you won’t be supervising the entire project, you’ll need a construction project manager who can aid in the selection of possible contractors.
Fund the transaction
It might be difficult to obtain financing for the acquisition of land since many lenders consider new development to be risky. However, there are multiple financing options available, if you can show evidence of building plans. Accessing and securing this kind of financing is different from going to your bank for a normal mortgage loan, so review all the terms and conditions, as well as repayment timelines.
Be prepared to negotiate when you work with your agent to make a written offer to the seller. It may take some time for an owner to determine the genuine worth of the offer if they are absent from the area or if they inherited the property.
Make sure your agent informs the seller that you are purchasing this home for your family to age in, as they may assume that you are a developer wanting to undercut them and make a quick profit. Once they learn that you want to live there for a while, sellers might be more accommodating to your budget.
Is buying or building more affordable? Is building or purchasing better? That heavily depends on your own preferences and the price of the houses that meet your requirements in terms of square footage, layout, number of bedrooms, and bathrooms. You can now choose if you have the time and resources to start a lengthy effort to construct your permanent house.