INVESTMENT PROPERTY PURCHASE
Land purchase investment: Building your own home is still high on many people's wish list. Once you have decided on the most important parameters (size, location, orientation, etc.), it's time to look for the right plot of land. However, before signing a purchase contract for a plot of land, it is essential to check the basics carefully!
1. OBTAIN AN EXTRACT FROM THE LAND REGISTER
The first step in any survey should begin with a current extract from the land register. This shows, for example, the current owner, the size of the plot, any encumbrances (easements, encumbrances in rem, liens, etc.) and public restrictions (e.g. flight safety zone, monument protection, etc.). Scrutinise any encumbrances (e.g. rights of way) as these may result in restrictions for the planned development!
2. ON-SITE INSPECTION
The general principle applies: Never buy a property without first inspecting it! For example, not all easements can be seen in the land register (so-called off-book easements). If, for example, a footpath/path runs across your desired property or if there is a manhole cover on it, this should give rise to further enquiries, as this could at least hinder or even prevent the planned development. Ask the seller whether there are any documents/agreements for this, as this can often be associated with costs (e.g. maintenance costs) and/or liabilities.
3. WHAT IS THE CURRENT ZONING AND DEVELOPMENT PLAN?
In most cases, you already have a rough idea of what is to be built on the property when you start searching. It is therefore necessary to check the spatial planning regulations to see whether they permit the desired development in its current form. Can your planned house be built in accordance with the current zoning and development plan for this property? In many countries, this information is already available online. If not, you can also obtain the necessary information from the relevant local authority. In any case, it is advisable to talk to them, as there may be other special features and information regarding the property that could be relevant for you or that the seller may not have told you on purpose.
If a rezoning of the property or the issuing of a development plan is still necessary for your planned project, allow the appropriate time for this. It would also be advisable to include a corresponding right of cancellation in the purchase contract if the required rezoning does not take place within a certain period of time. What good is a plot of land if you can't build your dream property on it?
4. DO NATURAL HAZARDS THREATEN MY FUTURE PROPERTY?
Depending on the region, the property may also be located in an area affected by floods, mudslides, avalanches, rockfall, etc.. Corresponding hazard zone plans are drawn up, which you can usually access digitally. If this is not possible, these can also be viewed on site in the respective municipality.
5. CONSTRUCTION AND DEVELOPMENT OF THE PROPERTY
Does the property have an appropriate access road? Is this also legally secured? If not, then you need to ask yourself how you can get one. If you are dependent on the goodwill of a neighbour who would have to let you access your property via theirs, then it is better to leave it alone.
Is the property already connected to electricity, gas, water and sewerage? If not, you will need to plan an additional budget for this.
Tip: Buying a property is often the biggest and only major investment in some people's lives. So don't save in the wrong place and seek advice from a specialist. He or she will be familiar with the subject matter and will be liable to you for flawless work.
