Buying Land for a House
Discussion
I am going to retire fully in a couple of years and plan to sell my existing house and move to something smaller and less expensive to maintain. Since the car collection is still growing I also need decent garaging, so my solution would be to but a plot of land and a kit house to my spec. As i said thats a couple of years or so away, but having cash available, would I be better to buy the land now while the market is depressed or will it fall further (I know, the $60,000 dollar question) any opinions? I'm located in south east Scotland.
G
G
If it's a house for retirement, won't you be holding on till you snuff it? Hence it'll be worth more by then anyway?
To me, it's a question of availability. The site you want might drop after after you buy it, but then again it might not become available again and you've missed out on your dream site.
Personally, I'd be willing to take a few years of a hit for living somewhere I wanted with the view that the long term trend for land probably isn't down.
Then again, we all buy cars which are rarely appreciating assets. Sometimes you've got to spend a bit of cash to enjoy yourself. Not like you can take it with you, is it?
Just up the life insurance payments if it's really bothering you...
To me, it's a question of availability. The site you want might drop after after you buy it, but then again it might not become available again and you've missed out on your dream site.
Personally, I'd be willing to take a few years of a hit for living somewhere I wanted with the view that the long term trend for land probably isn't down.
Then again, we all buy cars which are rarely appreciating assets. Sometimes you've got to spend a bit of cash to enjoy yourself. Not like you can take it with you, is it?
Just up the life insurance payments if it's really bothering you...
No-one knows exactly what is happening to land and house prices but my guess (I work in the industry) is that they are or are very near there low point. It would not suprise me if in spring that money is cheaper and the banks more fluid and that ftb's come back to the market. If they do they will be the catalist for the whole housing market to move forward again.
I bought some land a few months ago as I beleive now is the time to buy (only my opinion), we still have our current house, but building now on the land and plan to move there.
If you find your perfect plot, buy it. Regardless of the market good plots in good locations are very very hard to come by! In the long term land and bricks and morter will always appreciate - look at the 90's 'crash' - 10 years later prices were far over double!
I bought some land a few months ago as I beleive now is the time to buy (only my opinion), we still have our current house, but building now on the land and plan to move there.
If you find your perfect plot, buy it. Regardless of the market good plots in good locations are very very hard to come by! In the long term land and bricks and morter will always appreciate - look at the 90's 'crash' - 10 years later prices were far over double!
Whatever happens in the current housing market, building land will always be in demand suffciently to say that, if you find the right plot, then buy it now.
Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
Sorry to hijack the thread, but how did you find your perfect plot - did you walk tirelessly around a decent neighbourhood and look for an opportunity, or are you using an agent. Sounds a stupid question, but I'm also in the market to buy land and build, and have no idea where to start.
Davel said:
Whatever happens in the current housing market, building land will always be in demand suffciently to say that, if you find the right plot, then buy it now.
Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
No one can borrow to build on land, so its being dumped by everyone other than the big boys and the big boys cant justify buying all the land up.Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
Whilst its relatively resilient in comparison to city centre flats, its still slipping.
First you have to find your bit of land, with respect, and its value will depend on location, amenity, size, buildability. This is like asking how long is a piece of string.
If you find the right site, and you can buy it at a reasonable figure given the current climate, then imho you would be well advised to do so. When the serious inflation wave of this tsunami hits us you might as well be in good building land as anything else. Also you will get good value from builders just now.
Whatever you do don't buy something that for planning, contamination, structural or drainage reasons you can't build on at all or can't build what you want on. Its not just as simple as buy a site and stick up a house.
If you find the right site, and you can buy it at a reasonable figure given the current climate, then imho you would be well advised to do so. When the serious inflation wave of this tsunami hits us you might as well be in good building land as anything else. Also you will get good value from builders just now.
Whatever you do don't buy something that for planning, contamination, structural or drainage reasons you can't build on at all or can't build what you want on. Its not just as simple as buy a site and stick up a house.
Plotloss said:
Davel said:
Whatever happens in the current housing market, building land will always be in demand suffciently to say that, if you find the right plot, then buy it now.
Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
No one can borrow to build on land, so its being dumped by everyone other than the big boys and the big boys cant justify buying all the land up.Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
Whilst its relatively resilient in comparison to city centre flats, its still slipping.
If you have to borrow, then that may be more difficult.
VetteG said:
As i said thats a couple of years or so away.
Have a look at the selfbuild magazines, they are full of people who spent a year or two looking for the right plot. Get on with it.There are plot finding websites as well, but getting friendly with agents in your local area is as likely to find you a plot i reckon.
sa_20v said:
Sorry to hijack the thread, but how did you find your perfect plot - did you walk tirelessly around a decent neighbourhood and look for an opportunity, or are you using an agent. Sounds a stupid question, but I'm also in the market to buy land and build, and have no idea where to start.
We started by choosing our location - very specifically within 3 villages (next to each other). We then scanned rightmove, agents websites, auctions etc for 2 years until eventually this came up with full planning permission. We bought it, tweaked the layout slightly...There is no point looking for a needle in a haystack, set where you want to live and search hard, keeping in touch with agents helps (albeit I hate agents) but they will 'have their ear to the ground' and may know as something comes up. They wont call you though, so put a weekly call in and get freindly with the local agents.
Davel said:
Plotloss said:
Davel said:
Whatever happens in the current housing market, building land will always be in demand suffciently to say that, if you find the right plot, then buy it now.
Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
No one can borrow to build on land, so its being dumped by everyone other than the big boys and the big boys cant justify buying all the land up.Once you've got it, you can always choose when you want to build on it.
Better to have it, than find that you can't buy it when you want it - if that makes sense.
Whilst its relatively resilient in comparison to city centre flats, its still slipping.
If you have to borrow, then that may be more difficult.
Leondrums said:
No-one knows exactly what is happening to land and house prices but my guess (I work in the industry) is that they are or are very near there low point. It would not suprise me if in spring that money is cheaper and the banks more fluid and that ftb's come back to the market. If they do they will be the catalist for the whole housing market to move forward again.
I bought some land a few months ago as I beleive now is the time to buy (only my opinion), we still have our current house, but building now on the land and plan to move there.
If you find your perfect plot, buy it. Regardless of the market good plots in good locations are very very hard to come by! In the long term land and bricks and morter will always appreciate - look at the 90's 'crash' - 10 years later prices were far over double!
"No-one knows exactly what is happening to land and house prices but my guess (I work in the industry) is that they are or are very near there low point"I bought some land a few months ago as I beleive now is the time to buy (only my opinion), we still have our current house, but building now on the land and plan to move there.
If you find your perfect plot, buy it. Regardless of the market good plots in good locations are very very hard to come by! In the long term land and bricks and morter will always appreciate - look at the 90's 'crash' - 10 years later prices were far over double!
I am willing to bet a reasonable sum that you are wrong (for charity). I recall reading somewhere that residential land fluctuates at around 2.5 times house prices.
Some numbers here
http://www.voa.gov.uk/publications/property_market...
Land off 15% in 6 months
Gassing Station | Business | Top of Page | What's New | My Stuff