Vacant land properties hold unrivalled possibilities. The ideal slice of land can become your dream home, holiday getaway, or the site of your business. Thanks to a booming property market, you have more vacant land options than ever. Cobus Coetzee, Agent at Century 21 Hartbeespoort, believes buyers should unearth the potential in Northam.
"Land investment has always been the most basic real estate investment strategy", says Coetzee. "It is a raw investment; it gives you the ability to start something from scratch and to build basically anything you desire. Alternatively, it gives someone else the opportunity to build something on land."
Buying vacant land can be more affordable than investing in developed properties. It can be a truly satisfying experience if you want to quickly get a foot on the property ladder. In prime locations, vacant land can become highly sought after as available land becomes scarce. According to Coetzee, the process can be a simple one if you follow the right steps.
Process of buying vacant land
Before you buy, it's a good idea to talk to an experienced real estate agent, says Coetzee. Besides having a deep understanding of the area, they can guide you through the process of purchasing vacant land.
1. Identify your goals: Like all real estate, you shouldn't buy vacant land on impulse. Take time to understand what you'll be using the land for and what your outcome will be.
2. Assess your finances: Banks consider vacant land riskier assets. You might experience difficulty in securing a loan. Having a sizable down payment will work to your advantage.
3. Find your piece of land: Depending on your goal, you will need to find a property that can help you succeed. Be sure to evaluate the land and surrounding area to see if it's a match.
4. Understand permits: Before you buy, consider the permits you may need for your land. These include building, sewer service and water, zoning, and environmental permits.
5. Make an offer: Because financing might be tricky, you should always try to get the best deal possible. Negotiate with the seller before signing the dotted line.
Vacant land buyer challenges
Coetzee cautions potential buyers to consider the risks before making a move. He outlines the two main challenges you may encounter during the process.
As mentioned, financing your vacant land purchase can be difficult. You can apply for a land loan or vacant land loan to purchase an empty block of land. These typically have higher deposit requirements and higher interest rates as most lenders see them as a riskier proposition than a traditional home loan.
Next, you have to consider the location. Be critical when appraising the size, shape and aspect of the block, slopes, soil, rocks, and trees. All of this can impact how effectively you can use the land - if at all.
Selling a vacant land property
It can be tough to sell vacant land as potential buyers aren't exactly plentiful, notes Coetzee. Selling vacant land takes a little bit of patience, a little bit of luck, and a lot of dedication to optimising your property for a sale. He points out five steps sellers should take:
1. Work with an experienced land agent. They can help you price your land to sell, figure out comps (which are often few and far between), and give you insight on the key trends that will help dictate how to best set up your vacant land for a sale.
2. Market your vacant land through social media, property portals, and on-the-ground networking.
3. Study up on relevant zoning and government regulations. You should be aware of all the rules and regulations concerning your vacant land and its possible uses. These are topics potential buyers often ask about.
4. Make smart improvements such as fencing off the property border to hooking up attachments for future utilities.
5. Do a flyover. Hire a professional photographer to take drone videos as this is a far more effective way to showcase your land than still pictures.
Vacant land for sale in Northam
Northam is a small town surrounded by a community and platinum mines, game farms, guest farms, lodges, and guest houses, to name a few. The town also plays an important role in the South African mining industry. At present, there are a number of vacant land properties for sale in the area. With a huge demand for accommodation in Northam, buying here can be a smart decision.
Century 21 Hartbeespoort are your go-to real estate agents in the area. Coetzee says they have been dominating the Northam area over the last few years.
"We know the area, the property, and all the requirements there are to buy property in the area. Not only can we give the right advice, but we will also guide you through the buying process, from securing a bond to registration and thereafter."
Buying vacant land is a fantastic way to get into the real estate game. With the help of Century 21 Hartbeespoort, you can make a successful investment. View our properties for sale and contact our team to get started.