Accessibility:- This is one of the most important factors when looking at any building plots or land for sale. If the building plot isn’t accessible then it is worthless. localization is key as well as price. Also you would have to decide if you think the building plot has a chance of getting planning permission. So before you throw your money these points would need to be thought about .
How do I know the plot’s value?
This is relatively straightforward to forecast as plots gain their value from the property that will eventually be built on it. That dwelling will be based on similar properties in the local area and what they achieve on the housing market. A quick call to an estate agent in the local area can tell you which types of houses sell best, what the asking prices were and what the truly sold for. Land Registry is also a great assistance. Online, www.zoopla.co.uk and www.nethouseprices.co.uk can also be a great help .
Plots are the same as houses as they have got a ceiling value, this is seen as the price beyond which it is no longer economically viable. Obviously it all counts on the area you are looking at as building plot prices change from locality to locality. You will need to be familiar with plot prices in your locality so that you know that you’re making a fit investment, if you need assistance on comparables simply email us at enquiries@buildingplotsforsale.org and we will get in touch with yourself with all the relevant information. Always have an idea of what type of home you would want to build and look at building plots for sale that reflect that, you need your property to fit in with other houses in the locality for planning purposes and also if you decide to sell later on. If you spend a fortune on a large seven bedroom property in street where there are most of all four bedroom homes, as soon as you come to sell you won’t get much more than the average asking price so be wary of this. Try not to “over-develop” the plot but also don’t under-develop the building plot either, maximise the plot’s potential.
Will I profit in the end?
The profit margin has always been the third, third, third, rule. This basically means as thereabouts one third for the plot, 1/3 for build costs and one third equity. Now some things have changed, as already discussed regional variations of plot values touch on this and also plot availability. There are just not enough good quality building plots for sale to meet the demand. an example of this is, if you live in an locality where there are lots of building plots for sale and property prices are quite low then the building plot price can be around a 1/4 of the value of the final home. although unfortunately if you live in an locality where building plots for sale are harder to find then expect the price to go up. alot of the time the building plot value can be fifty percent or more of the final value of the finished house. When building costs are added to the cost of the plot, the profit margin in toll of a percentage yield, related to expenditure, are still around the 30% mark. It is balanced out though by the huge differences in land costs but modest variations in build costs between different areas, but the high market value of the finished house in the different regions is noticeable.
Reference: Channel 4, 4 Homes
