Wednesday, June 20, 2007

Buy New or Buy Vacant Land to Build New?

There has always been a certain romanticism about finding a pristine piece of tera firma that is intact and as nature intended with lush vegetation, babbling brooks, and rolling features.
Essentially to tame that which is wild.

While this notion inspires an almost primal instinct it usually clashes with the cerebral reality of how daunting this task must really be. It is usually fear of the unknown that inhibits the average buyer from bringing their "vision" to fruition.

The reality is that one does not need to be an expert to accomplish this goal, however one must place their faith in a competent professional who is well versed in the language of zoning and land use controls.

Heterogeneity is a term that means "uniqueness" and one which has real pertinence when considering an investment in real estate, particularly here in Southwest Michigan.

The large and open tracts of land which have historically been agricultural or "buffers" are highly coveted and may be regulated by such agencies as the D.E.Q., FEMA, Conservation Reserve Programs, and Right to Farm Acts or restricted by Public Acts such as 116.

Finding an architect and a builder is only a small part of the task at hand as is finding the lender to secure a construction loan. The ability to succeed in these endeavors requires a working knowledge of the aforementioned land use controls and what requirements need to be met in each scenario. This is precisely where the concept of heterogeneity arises.

It is not necessary to understand each of the vast types of restrictions and requirements but rather to know that they exist.

Insist that your chosen representative possess the knowledge to provide you with the answers to make an informed decision on whether to buy, buy new, or build it from the ground up.

Knowledge is power!

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