The American Dream is to own a home that they love, and eventually pay it off so that their housing expenses fall to zero. But even better is being able to choose the exact plot of land to live on, in the perfect area, and build your dream house on it.
Wondering how to buy land and build a house? Buying land isn’t as difficult as most people think it is.
But building a house on that land can be complicated. And building a home is always more expensive than buying, so you have to be a in good financial position.
You need to have a detailed plan of where you want to be, what you want to build, and how you’re going to finance it. Check out our five tips to get started below.
1. Take Your Time
The last thing you want to do when choosing land and building your forever home is to rush the process. Slow down, take the time to really think about what is important to you, and be patient.
You’ll find the right piece of land eventually, but it might take a few months to locate. Don’t settle by building your own home on a subpar lot.
2. Work With an Experienced Agent
Buying the right piece of land is complicated. To save yourself money and heartache, work with an agent that has experience buying Townsville land for sale for residential homes.
They’ll be able to help you check the local ordinances and zoning laws so you don’t waste time on the wrong parcels.
3. Check With the City
When you find a parcel you like, the first you need to do is contact the city planning department. You need to know if the property has easy access to local utilities. If not, it can be cost-prohibitive to get your new plot of land connected to water, sewage, and electricity.
4. How to Buy Land and Build a House; Find the Right Financing
Land buyers need to have the right financing in order. There are multiple mortgage programs available for building a home.
Some involve a two-step funding program, where you get a short-term loan to finance the construction, and a long-term loan afterward. Other programs consolidate everything from buying land to building, to long-term financing in one program with one set of closing costs.
Finding the right lender is crucial to getting started.
5. Have an Exit Plan
Buying land is risky, and building homes from the ground up is even riskier. There’s a lot that can go wrong, and lenders don’t make it easy to borrow money to build a home,e though it is possible.
If you buy land before you are ready to purchase, have an exit strategy in place. In the event you don’t get the financing you need to build, you might need to sell your land quickly so it doesn’t become a money pit. Read more here about the easiest way to sell land if things go wrong.
Planning Is Everything
So you want to know how to buy land and build a house? Those who dream of building their own house should spend at least a year planning and preparing, if not much longer.
There are many benefits of buying land and building, but if you aren’t prepared, one mistake can ruin the whole process. Better to take your time and do it right, than rush and make costly mistakes.
Looking for more homeownership tips? Head over to our blog now to keep reading.