Whether you are buying land in Kentucky as an investment or to build your home, there are some very important things that you need to consider during the buying process. Check out these land buying tips to ensure that you find the right property:
1. Figure out your financing. Most banks are hesitant to finance land, simply because borrowers are more likely to default on land loans than they are on home loans. As a result, you may have to make a larger down payment on a loan for land than you would for a home loan. In fact, in many cases, you need to put as much is 50% down on the property. Find out what financing options are available and make sure that you have the necessary funds set aside to purchase the property.
2. Check that the property has a clear title. Make sure that there are no liens or easements that you need to deal with.
3. Check zoning regulations in the area to make sure that you can do what you want to with the land. For instance, if you are buying the land to start a business, you need to make sure that the local zoning allows for the types of activities that you want to do.
4. Make sure that there is road access. Your land won’t be much good to you if you can’t get to it. Often, inexpensive pieces of land have access issues. For instance, they may be surrounded on all sides by private property with no way to get a road through to them. Double check that there are no issues with gaining access to your property before you buy it.
5. Explore your options for utilities. Some pieces of land already have utilities available whereas others are completely undeveloped. If you need access to power, water, or sewer, it is important to check that these services are available before you buy the land. You can also look into options such as using solar energy, digging your own well, and installing a septic tank if public services are not available.
6. Find out how much property taxes are. Make sure that you can afford the taxes along with the land payment.
Buying land in Kentucky can be a great investment. However, it is important to keep all of these factors in mind when completing a sale to make sure that you don’t wind up buying a property that has major issues.