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Land or House?

S

shina

Member
Hi,

We are thinking of buying a house for us to live in but, we are looking for a house that need renovation so we can have it for cheap price and renovate it, another option is to buy a peace of land and to build our house on this land from scratch, I understood that building costs are around the 1000£ m².
The question is can I get a peace of land that has building permissions for a good price that will make it worth building my house on or is the fact that it has building permissions already, necessarily gonna make its price much much higher and on the other hand if it's a farm land what it takes to make it liable to build a new house on? and how much it can cost me to get building permission if at all?

Thank you
 
N

nmb

Well-Known Member
This is a very tricky decision because any land with planning permission would experience an uplift in value. In a perfect world you would buy the land before planning permission was granted at a lesser price. However, the risk is that you buy land with no planning permission and the authorities refuse your request.
 
S

shina

Member
Thanks nmb,

What about all the websites who pretend to help you find your perfect plot? shouldn't I believe them? is there a catch I miss here?

Thank you
 
N

nmb

Well-Known Member
There is no harm in using these websites as a means of locating plots in your region and getting an idea for the cost with and without planning permission. However, the key to maximising returns is what you actually do with the plot itself. I would assume that those with a potential higher profit margin would be snapped up fairly quickly leaving those with a lower profit margin. There may well be scope to negotiate a lower price on these plots left over but it really is a case of balancing the risk/reward/investment/what you plan to do with the plot.

When investing in any form of property to redevelop and sell on it is imperative that you keep your costs as low as possible to protect your profit margins.
 
Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Hi @shina

It appears you are looking for your "home" rather than a pure investment and it's often difficult to combine the two as your goals will be different for each.

How are you funding this venture? Buying land without planning is very hard to get any finance on especially as it's your first major project. Development finance will also be tough for the same reason...

As a first project I'd suggest a small refurbishment project is the easiest and less risky route and provided it has the basics already there (kitchen, bathroom etc) it should be mortgageable as well.

Educate yourself as much as possible first too in order to avoid as many pitfalls as possible!

Good luck and keep us posted...
 
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