Buying Land in California
Land in California has always been an attractive and potentially lucrative investment. However, buying land in certain portions of the state can present certain challenges. Especially in popular areas such as southern California, there is a scarcity of property that has driven the prices up dramatically, with many lots topping the $500,000 mark. Land buyers are increasing looking for ways to build economical homes on these properties that will still allow them to end up with a profitable property. Additionally, many buyers are looking for land that is further away from the state’s main commuting centers, where real estate prices are more affordable.
Reasons to Buy Land in California
There are many different reasons why a person may be interested in purchasing land in California. Although many people are interested in purchasing property for the purpose of building a home, there are many other compelling reasons to buy. Some people have a dream of buying farm land in the state for the purpose of raising livestock, crops, or even to start a winery. Horse farms are also extremely prevalent and popular in the area. Before you start to look for land in California, you should understand your specific needs, and the area of California that would be most conducive to your intended use for the land.
Buying Vacant Land in California
In California, vacant land is referred to as commercial property. This is true even if the land is located in a residential area, and even if the buyer intends to build their primary residence on the land. Loans for vacant land in California are also considered by lenders to be more risky than residential loans. Since the land is vacant, the land cannot be considered as the buyer’s primary residence until the home is actually built. Until the time that a home is built, the owner actually has other housing options in regards to their primary residence, which is why lenders consider these loans to be a bit riskier. Buying land in California can be a great investment, but buyers need to expect a larger down payment requirement than they would for a home that is already built. Many times other requirements also exist when purchasing vacant land, such as a detailed construction timetable, building budgets, and architectural drawings for the residence to be built.
Advantages of Buying Land in California
As compared to purchasing a home that is already built, buying property has many advantages. As long as you are able to work within the zoning requirements and building regulations for the area, you will be able to create just the kind of home or structure that you desire. This can be much more beneficial and financially advantageous than trying to remodel an existing home to meet your needs. Also, because of the recent real estate crash, many buyers are finding prices more affordable than ever in California.
Photo courtesy fkehren