The property development sphere is full of opportunities and potential pitfalls. If you choose the right plot of land to build on and market to new homeowners, you could be looking at a big return on your investment. To make this happen, however, you need to take all kinds of factors into account before investing in a new plot of land or estate.
Firstly, investors need to know what they can afford. The average house price stands at £225,956, so buying land to build on may be a safer bet than just the one property. Look at how much whole estates go for and find out which properties in which areas deliver the best value for money. Sometimes, the cheapest estates aren’t always the most attractive.
Filling in Forms
As is the case when buying a house, there are many different pieces of paperwork you must complete before owning an entire estate. Most of it is the same – a legal contract for conveyancing, an energy performance certificate and forms for Stamp Duty Land Tax. There may be more involved, depending on what you plan on building.
Choosing an estate agent to handle the forms or assist with them will save time. When buying rural property estates, it is better to be safe than sorry. Make sure everything you write down, from the amount you pay for the property to what you do with the land, is accurate. Even the smallest error could result in a fine.
Once the purchase has been given the go-ahead, there is the business of what to do with your estate. While it may be tempting to let your imagination run wild when thinking about any developments, there are some restrictions. Whatever you want to build, you may need to seek planning permission from the relevant local council.
Planning permission is a must for building something new or want to change the purpose of your new estate. You can seek it through the government’s Planning Portal, which will take you to the local authority. For construction, you also need to hire qualified, registered businesses to tackle any work needed.
If you get planning permission, you can then do the work you need on the estate and prepare it for sale or leasing. Using a farm as an example, it could be converted into an office space, hotel or several homes. Just make sure you charge the right amount and that there is sufficient demand in the local area. Otherwise, your investment would not have been worthwhile.