Issue 1: Buying the Land
Our first issue of Patten Tips: Buying the Land has been developed by Renee Howes, of R. Howes Consulting. Howes handles the acquisition process for Patten Companies and is one of the founders who also serves as the project manager for Texas Grand Ranch.
Choosing to invest your money into a piece of property is one of the best financial decisions you can make. More than a commodity that is finite and thus has an ability to appreciate in value, it bears in return just what you give it,so it’s imperative you set out the right goals and understand how to make the best decision for you.
We hope these tips help you, read them below:
- Identify what you plan to do with the property. This helps you determine your budget.
- Do you want to build on it?
- Use it for outdoor recreation, like camping?
- Or do you want to hold onto it for posterity as an investment?
- Identify what characteristics of a property is important to you. This helps you determine where and what type of property is best for you.
- Do you want trees for privacy?
- Meadows for horses?
- Or are you looking for a piece of property that is adjacent to public lands so you can use it for outdoor recreation ( hiking, biking, boating etc.)
- Deal with an experienced qualified land company. General realtors typically deal with residential homes and may have limited knowledge and experience when selling land.
- Does this property have legal access? If the property does not have frontage on a public road, make sure you understand the type of access it has.
- Does the land have protective covenants? Is it important to you to know what your neighborhood will look like to protect your land values?
- If your property isn’t on a public right of way, who maintains the roads? Do you pay dues for the maintenance? Is there a regular schedule for maintenance? Ensure you factor in your total cost of living when investing in a land property.
- Consider the age of the community if you are buying. Are the facilities and infrastructure updated? Updating the infrastructure of an older community can be expensive. Again, what are you willing to invest and how much time to do you have to effectively devote to the property?
- Do your research and if you find that “dream property” be prepared to act. You could hesitate and the property could sell to someone else.
Land opportunities do not last, especially those with reputable land companies. Ensure you’re willing to make the investment quickly.