Buying land to build a house later is a tedious process. But can you build a house on land you are still paying for? Purchasing a piece of land alone already deals with a huge amount of money, and the same goes for building a house. When put together, purchasing land and building a house can leave anyone prone to any financial difficulty if proper planning isn’t taken. Read on to find out how to buy land and build a house.
Can you build a house on land you are still paying for? Well, you have the option of purchasing land and building a house using your money or taking out a loan. Consider renovating your old home if the budget is tight and you don’t want to apply for a loan. Once you have settled your financing options, the next steps on how to buy land and build a home are finding vacant land and knowing if the land is build-able.
Given the number of listings online, learning how to buy land and build a house is manageable. Looking for a vacant lot before buying land to build a home is now easy. Meanwhile, buying land to build a house later is tricky, as you have to make sure that the lot you bought is build-able.
To buy land to build a house, you can check the zoning ordinances, building codes, and necessary permits with the local government. When buying land to build a house, there are also regulations by the federal and health department outlined for wetlands, toxic materials, endangered species, and other environmental issues.
Securing a Permit
After buying land to build a home and confirming that the lot is build-able, it’s time to secure building permits, which will cost you about 1% of the total home cost. Permits are needed to buy land to build a house, and a building inspector will oversee the building plans and may ask for an official blueprint of your house.
The following requirements need to be submitted:
- building permit application
- agent authorization form
- appointment declaration
Other copies of the plans may also be required along with the project layout and construction plans. Permits for electrical and plumbing work are also needed.
Clearing Land and Weighing Options
After buying land to build a house, the land needs to be cleared if it is filled with a lot of trees. Removal of trees, roots, and vegetation can be done, and they can be buried in the same lot. Excavation will be needed if you have plans of creating a basement in your house. To address runoff and erosion, you will need to have drainage systems in place.
Deciding on Home Type
New construction and modular homes are the typical choices you can choose from. Unlike mobile homes, modular homes never depreciate in value and they are much cheaper compared to homes that are “stick-built”, which make them a great option if you are thinking of selling your home fast in the future. The only challenge with modular homes is the limited options available when choosing building plans and companies. To add value to your home, you can add certain features like outdoor patio tiles or epoxy flooring.
Purchasing land and building a house are no easy tasks, but being aware of how the process works can guide you in getting the right help you will need. Knowing how to buy land and build a home is a basic know-how everyone needs to know to be prepared in taking on a major home project. You can also try flipping a house if the idea of purchasing land and building a house overwhelms you.