Get In The Real Estate Market By Buying Land

Not quite ready to buy a home, but don't want to miss out on the great deals available during the current market? Consider getting into the real estate game by buying a lot or piece of land. It could be the future site of your first home, dream home, retirement destination, or investment property, or simply an investment that you'll later sell, putting the proceeds towards another real estate purchase. (There is no guarantee that the value of any piece of real estate will go up.)

There are many options when it comes to land and lots - you can consider an unimproved property in the country, or a cleared lot within a development, and many choices in between. Here are a few things to think about when evaluating a potential property:

• What is the area like? Is the property zoned for the type of dwelling you would want to build? Is it zoned for something you might not want to live nearby, such as a commercial operation or multi-unit building?
• What improvements have been made to the lot? What utilities are available such as electricity, water, and sewer? If the lot is ready to build on the price will generally be higher, but you should weigh the increase against the cost of paying for the improvements on your own down the road.
• What restrictions does the community have about the home that can be built? Does the allowable and required square footage, setbacks, number of stories, fencing, landscaping, architectural style, color palate, etc. fit in with your plans for the type of home you plan on building?
• Is there a time frame in which you are required to begin and/or complete building? Does that fit in with your plans?

Financing for land or lot loans can be tougher to come by than mortgage loans for existing homes, but that doesn't mean it's impossible to come by. Check with your local bank or credit union. Two other options are taking out a personal loan, or a second mortgage on an existing property.