Purchasing property can be an exciting and also a tricky experience. You don’t have to be a financial guru to understand the value that property can hold especially if invested in at the right time and of course the right area. With only so much land available, property investment and purchasing of plots and houses are completely subject to the supply and demand scale.

You may be an experienced property investor looking to add to your property portfolio or a first time homebuyer looking for the perfect plot to build your dream home on. Either way we recommend you take these 5 things into consideration before committing to purchasing a plot of land.

There’s a reason why this term is used so often in the property and development market. We all know how important location can be to the value of your land and property. The same goes for when purchasing a plot. Seaside properties will go for much more than in-land properties, and city plots may go for more than a plot in the burbs. Consider your budget and your long-term plans when choosing the right plot for you. If your entire budget is blown on purchasing a plot by the ocean and your dream was to build the perfect family home (close to schools and parks) you may be focusing your investment on the wrong location.

If your aim is to build your holiday home in the middle of nowhere, with beautiful mountain views and not a soul in sight for kilometers, be prepared that you may need to be living off the land by collecting storm water, having a borehole sunk and installing your own sewage system. Inevitably these will all add substantial costs to the purchase. When investing in land, take into consideration the public services that are available to you. How close is the nearest public waterline, sewage system, electrical line, etc. These can all save you large budget setbacks and make your property more desirable for re-sale if you plan on keeping the plot as an investment piece.

Zoning and usage are really important to know when purchasing a plot of land. There’s really no point in spending your weekends trying to discover the perfect city plot, or seaside escape if they cannot be built on. Most seaside plots don’t allow for two-story development, so as not to disrupt the view for others. Some city plots may be restricted in size or by public service pipes, sewage systems or storm water collection drains that run under the plot. Know what you are able to do with your plot and whether these restrictions are tolerable, this will avoid disappointment and a wasted investment later.

This may seem like a peculiar question to ask, but it’s actually quite significant. If your plot is land-locked by privately owned land you will need an easement (or right of use) over the property of your neighbour to gain access to your plot. If you cannot access your plot – it’s pretty worthless.

Easements are usually listed as part of the title deed, so check if you have one. If not you can always make friends with your neighbour and if there is a history of their land being used to gain access to the plot, then they won’t be able to deny you the easement, although usually a payment for the use of the land may be required. Make sure that all the legal documents are up to date and the easement is registered with the deeds office to safeguard your investment.

You may find the perfect plot, everything you’ve ever imagined when thinking about your dream home location. However you didn’t expect that two years down the line there would be a national highway being built in your garden, or that your bedroom window would be overlooking the newest power utility factory. Take the time to find out what the city has planned in your area before committing to purchasing. It could save you a lot of surprises and risk of property depreciation in the future.

Taking all of this into account can really ensure that you make a wise investment. Take into consideration what you want to get out of your investment - what you are willing to compromise on and what you are not.

Inevitably, purchasing into a development with a developer that has the experience and legal expertise of purchasing land for development will make your life a lot easier. After all, they will have investigated all of the above factors before purchasing the land and many plots within these developments will already have access to all the public services you will require, saving you money and time. Development plots usually have pre-submitted plans for housing that can be used and this really does make a difference when considering purchasing a plot to build on in the near future.