Have you ever driven past a piece of land and thought, “That would make a great…?” If so, you wouldn’t be the first, and you might not even be the first to enquire if that particular piece of land is for sale and at what price.
The often repeated mantra of “location, location, location” can be misleading when it comes to real estate. While location matters a lot, there is no point in having a great location if you cannot do what you intend with the land. There is a reason so many great-looking plots have not been snapped up and converted into beautiful homes, luxury hotels, high-tech business parks or whatever you are thinking. It’s because doing so is not allowed.
You need to check zoning laws before purchasing real estate
It might be possible to apply for a change to the zoning restrictions when you spot a piece of real estate you like. Yet, if the authorities refuse your request, you could be left with a plot of land you struggle to shift or use. Even if you eventually succeed, the process could take a long time, tying up your money rather than producing the rapid profit you hoped for.
The price can be a good indicator
If the real estate seems a bargain, it might be because the seller has already tried to change the zoning and failed. They know it cannot fulfill its investment potential.
There is much to consider when looking to invest in real estate. Investing a little more time and money in research before parting with your money increases the chance you invest well.