Finding a property to develop can be difficult. To complicate this further, it is even more difficult to find a property large enough to become an entire residential community. It’s easy to want to jump in and buy the property right away when you finally find it, but there are some negatives to be aware of. These ten negative aspects can impact and prevent and even destroy the development and eventual sale of your property.
#1) It is extremely important that you have the soil tested when you are considering the property. There are all sorts of things that have gotten into the ground one way or another that would kill your deal before it has. Land that has previously been used by industry could be land that has waste such as oil, lead, or toxic waste. These kinds of things make the land undevelopable. If you buy land that cannot be developed, you will keep the property. That means you will pay taxes on that property and you won’t be able to do anything with it.
You may be able to clear the land, but that will require additional investment and additional time before the land can be developed. If you already own the property and discover that you have these problems, you can hire someone to clean up the soil by bringing in fresh soil after removing the contaminated soil and hauling it away. Again, this will probably be a long and arduous process, which means that the land will not be able to begin the long process of development before it is completely clean and free of all problems.
#2) If you are near an area that has foul odors in the surrounding air, you may have trouble selling your lots once the land is developed. For example, a community developed on the outskirts of a landfill and it took a long time for that community to emerge. Not many want to live in an area that smells bad with every warm day when they go outside. This will make the land more difficult to sell and develop, which can end up losing money to the developer in the long run.
#3) Another area that you would want to stay away from as a developer would be one that is near a noisy location. An airport would be a good example. When the planes come and go they are quite noisy. If a residential neighborhood develops too close to it, it will be difficult to sell the lots and get people to live so close to that noise.
#4) Sites that have health hazards too close to them can be hard to determine, but they can also be sites that will lose money to the developer since people will worry about living so close to these dangerous things. Some examples are areas that are near power lines, an auto manufacturing plant, or other plants that will emit toxic waste. Not many would want their children to be exposed to such dangers and therefore would not want to buy much in this area.
#5) If the land you are considering investing in is near or would offer a view of something sinister like a graveyard or something unpleasant and noisy like a series of bars, casinos or a prison, use this reason to decide not to do so. the investment. Not many would want to look at a graveyard from their kitchen window. Those raising families traditionally would not like the noise and danger of things like bars, casinos, or a nearby prison.
#6) Land that may be considered unincorporated can be a hard sell to consumers. This means that the properties will have well water instead of city water. Some will be willing to buy bottled water and continue to live in this area, but many will not. Another negative aspect of these types of areas is the fact that the people who buy the lots will have to use septic tanks instead of the city utilities. Again, many people will not want the added hassle of dealing with septic tanks that need to be maintained and often clog up.
#7) When you take a look at the land you are considering for development, be sure to look for any wetlands within your acreage. Wetlands are extremely difficult to build, if they can be built at all. With wetlands, your only hope for development would be to fill that land with soil that can absorb water. In many cases, these wetlands are protected by the government and cannot be built on anyway.
#8) Certain soils are also difficult to develop. Rocky soils and soils that are not compatible with septic systems may not be developed. Again, this will result in additional money having to be spent so that the land can be developed or additional taxes.
#9) Be sure to pay attention to local politics. If there are political people who are not in favor of development, they could hinder the realization of your project. If you have those kinds of problems, you may never be able to develop the land.
#10) Be aware of any other local development. Other local development may make your development more difficult to sell. People looking to buy property to build a house may not like other developments coming up and this will make their properties harder to sell. Make sure you are aware of all the other developments nearby and how the community feels about them.
Developing land in a residential community can be a very profitable venture, but you need to be careful with your investment. As long as you know the ten negatives above and are careful to avoid them, you’ll be well on your way to selecting a great development site.