Buying real estate is one of the most exciting and significant investments you could ever make! Finding that perfect spot can take a lot of time and research, however. Every resale home will undoubtedly have something that needs a little tweaking. A paint job here, an addition or an overhaul there, and the cost of your renovations can take you over what you initially planned to invest.
Even a brand new pre-construction home might not live up to your exact specifications – unless you agree to countless upgrades, which once again can lead to blowing your budget. Is there another option?
For some people, buying vacant land represents the perfect solution. You can carve out your personal paradise and build a custom home with everything you’ve ever wanted! Even then, there are some things you should know.
A Quickly Disappearing Resource
Mark Twain once commented, “Buy land. They’re not making any more of it.” That statement was true then and is even more so today. As the population grows, housing becomes more in demand. Vacant land is quickly getting snapped up by developers, commercial investors, and residential buyers alike. Plus, much of the vacant land you see isn’t even for sale and is under government protection. What does this mean when you begin your property search?
As a commodity in high demand but in short supply, you may face competition in your quest to buy vacant land. A local real estate agent with connections will be a valuable resource to help you achieve your vision.
A Blank Slate With Unlimited Possibilities
Think of every house, store, shopping mall, commercial structure, or building you’ve ever laid eyes on. Every one of them has something in common. They once existed only as vacant land! Someone came along with a vision, purchased the lot, and created the structure you see today.
Owning vacant land is like having a blank slate. Zoning considerations aside, you have a world of possibilities open to you.
You can build your dream house, construct a business, or build a multi-family investment property. What will you do once you’ve obtained your lot? Once you know your goals, you can work with your real estate agent, lawyer, and other professionals to ensure local by-laws and regulations allow you to proceed as planned.
Many investors and relocators have their eyes on Kawartha Lakes, and for many good reasons! Here are a few interesting facts you might want to know:
- Your Guide To Living In Kawartha Lakes
- Think the Kawarthas Are Just for Summer Vacations? Think Again!
- Is Now A Good Time To Buy A Cottage In The Kawarthas?
The Pros and Cons of Buying Vacant Land
In some ways, buying vacant land is like buying a residential property. You can view listings on the MLS® and work with a local real estate agent to negotiate the best terms for you. What’s different about it?
Your bank or lender may consider your purchase a riskier investment than buying an existing house. As a result, it can be more challenging to obtain the financing you need. Your down payment will likely be higher, requiring anywhere from 35% to 50% upfront.
Lastly, you may pay more interest than with a traditional mortgage. The good news is that your initial investment is far less for a vacant lot than a residential home. Consider that the current average price for a house in Ontario is $865,279, Vacant lots can run anywhere from $15,000 to $400,000 and everywhere in between. Depending on the type of land and location, you may be able to cover some or all of the investment in cash.
Types of Vacant Land
Like other properties, vacant land falls under different classifications. In Ontario, there are three types of land available for rent or purchase.
- Raw land that has never been developed. This may be your least expensive option upfront, but your development costs will be higher. Raw land does not come with sewer or utility access. Your lot may not even be accessible by roads.
- Vacant land that has some access to power lines, water, and road service. If you plan to build your dream home, this is likely your best option unless you want to be off the grid.
- Crown land is owned by the Ontario government. Some lots may be available for purchase or rent, but you will have strict limitations as to what you can do with them. Most of Nothern Ontario is considered Crown Land. However, you won’t find much south of Sudbury.
How to Find the Perfect Spot
Location is always crucial when buying a property of any kind or for any reason. Let’s face it. What good is a spectacular house if you aren’t near any of the amenities or landmarks that you love? And if you’re buying an investment property, your location can make or break your profitability. Where should you begin your search?
Kawartha Lakes is a popular destination right now. Once considered vacation territory, many people are discovering the joy of living there all year long. What’s not to love? The scenery is stunning, and you’ll have access to some of the best lakes in Ontario.
Nearby towns provide all of the conveniences and amenities you could ever hope for. If you ever need to trek into the city, Peterborough and Barry are within an hour’s drive, and Toronto is only two hours away.
What else does Kawartha Lakes offer? Here are just a few things to enjoy:
- Discover the Best Kawartha Lakes Golf Courses
- Summer is Coming: Here Are the Lakes Near Peterborough You’ve Got to Visit!
- 8 Things To Do In The Kawarthas This Summer
Redefine Perfection
When talking about real estate, we all often use phrases like “find the perfect home.” In reality, there is no such thing as absolute perfection. Even if you spare no expense in building a custom home with every feature you can imagine, something will always come up. Your tastes can change. Your life can turn in a different direction. Will what seems “perfect” to you now still apply five years later?
Whether looking to buy or build a home, the secret to success is simple. Start by redefining what perfect means to you. Think of the location you want and the lifestyle you want to enjoy. And remember that nearly everything about your house can change over time.
You can build an addition if you need more space. You can add an extra bathroom or convert two small bedrooms into one oversized primary room. Look for the house that meets almost all of your criteria today, and you’re on your way to a happy life in a home full of memories.
Are you ready to begin your property search? We’ve served residential buyers and investors in Peterborough and Kawartha Lakes since 2018, and would love to help you! Why not book a call with us today? You can contact us at team@jeffandkatie.ca or call 705-243-9797 for more information or to get started.
