As we touched on in our previous Getting Back on Track Home Smart blog, it’s important to adapt to the changing external environment in order to achieve your goals. Despite all the challenges that the global pandemic has brought, all is not lost for those who are still on their journey towards homeownership. If you haven’t yet had a chance to watch our ‘Buying Land” episode of the HomeSmart web series, here’s why it’s a smart move to buy land to get a head start on homeownership.
Why Buy Land
While many dream of moving into a turn-key home right away, it may actually be more manageable (and achievable) to make progressive steps instead i.e. buy land now and build your home later. After all, “Rome wasn’t built in a day”. Since land is an appreciable asset, its value increases over time so there is absolutely no harm in buying it upfront and allowing time to pass so you can save up to build your home, your Rome, exactly as you want it.
How to Buy Land
When deciding on what plot of residential land to buy, you must ensure that the developer or land owner has gotten the relevant land and building approvals so you can build your home on it when the time comes. Specifically, the land would need to be approved for development by the Town and Country Planning Division and the relevant Municipal Corporation according to where the plot of land is located.
Before you sign on the dotted line to buy the land, be sure to conduct a registered land title search to confirm that the seller indeed owns the land, verify the boundaries and ensure that there are no charges or liens on the property. Remember, this is a long-term financial commitment, so you’d need to have all the facts so you can make wise decisions. Land that has all the requisite approvals may be more expensive, but being deliberate in your search would save you a lot of stress and time in the end when you are ready to build your dream home.
When to Buy Land
There is no better time than the present to get started! As the saying goes “Land doesn’t spoil”. Typically land prices tend to increase over time, so it makes economic sense to buy while you can afford it, as the same plot is likely to become more expensive as time goes by. If you act quickly, you could even buy land in up-and-coming communities which may be tougher (and pricier) to get into later on.
We’d be happy to help you
We can help you start your homeownership journey with up to 90% financing for the purchase of residential land. Once you have gathered all the relevant documents, you can apply online to get a Pre-qualified Certificate for the amount you need to borrow to get started. We’d be happy to take you from here…to home!
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