Get The Facts: Researching and understanding your local community is vital for making a wise investment. You might be tempted to get on board with a great deal, but it is best to make sure the numbers make sense before buying. Google keywords such as “demographics, population growth trends, income levels, average housing prices” and other details will give you an idea of why land investors are excited about this area and if it makes for a good long-term investment.
Subdividing Land
When analyzing an investment, it’s important to familiarize yourself with the challenges of subdividing land. This will help you decide which properties are worth pursuing and substantiate proper divisions for selling later on.
Part 1: The Basics
Divide-and-sell is a simple process that requires some forethought, planning, time, and effort to execute properly. When completing this task, investors are doing one or more of the following things:
Breaking up large pieces of property into smaller ones
Building homes or other structures on these smaller plots of land
Creating roads through undeveloped parcels of property by clearing existing vegetation and brush to make way for roads, homes, etc. (A road can be made any width required.)
Zoning Laws
When contemplating zoning requirements you should not only know the different types of zoning but also how they work together. The following will give an overview of various types of zoning and how they may affect a particular property.
Zoning refers to any regulation that controls or limits the use of buildings, structures, land, or other properties in a given area. Zoning is used by cities, counties, and states to help regulate proper usage as well as protect the community from undesirable uses for specific areas within their jurisdiction. Some examples include protection from noise, odors, and pollution that can be created by certain types of businesses or industries. Zoning is usually governed by laws or ordinances which specify what type of development is allowed on a parcel of land based on its within a city, county, or state
Changing Zoning
When contemplating zoning changes, you should know you need to have a solid business plan. These changes can be costly and make no sense if they aren’t going to increase the number of customers. In fact, some investors might find it beneficial to buy a property with existing zoning for their dreams as some neighborhoods may not want drastic changes in the future. Checking the zoning on the land that you plan to develop on is critical to understanding the overall process of building your investment property or home, so make sure that you perform your own research.
Building Costs
When calculating these costs it’s important to remember that the city has no control over the price of materials used or problems encountered during construction.
First, determine what to build on your land, then figure out how much it will cost to build to meet your goals.
Next, you need to know the costs for building on your land in Colorado Springs. Calculate expenses such as preparing the ground materials, builder costs, landscaping, and any add ons the builder doesn’t include. You will need full details on everything they do provide for their price. You’ll also need to consider the post-construction charges to market. And because construction can be fraught with delays, a plan for holding and maintaining the property until it sells.
Location
For most land investors, the best locations are nearer to more developed areas, which provide a higher quality of life through efficiency, convenience, and public amenities, such as parks and recreation. The less real estate is available and the higher the demand, meaning an increase in value and growth stability over the long term in appreciation. Colorado Springs investors need to know the real estate market intimately to find the best location for their investment. It is essential in real estate to earn and maintain your returns over time. Narrow down the area of Colorado Springs you want to invest in first, and then zero in on the location of the specific site. For instance, a corner lot in a neighborhood is highly desired and holds higher value.
Working with an experienced investor for guidance like the experts at HBR Colorado will ensure that you stay on top of everything Colorado Springs investors need to know. At HBR Colorado, we make it easy! Call HBR Colorado at (719) 286-0053 or send us a message today!