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  • FIRST POST
    • mugatool
    • By mugatool 12th Jun 17, 10:49 PM
    • 5Posts
    • 2Thanks
    mugatool
    Is it worth buying land?
    • #1
    • 12th Jun 17, 10:49 PM
    Is it worth buying land? 12th Jun 17 at 10:49 PM
    I've recently come across land for sale in the Hertfordshire area. There is development potential for new built houses and already planning permission but I've never actually been involved in building from scratch. I have invested in property in the Midlands and was hoping to invest in property in the commuter belt but I'm not too sure whether I should risk buying land. If anyone has any experience in buying land I would really appreciate the help
Page 1
    • G_M
    • By G_M 12th Jun 17, 11:10 PM
    • 40,534 Posts
    • 46,371 Thanks
    G_M
    • #2
    • 12th Jun 17, 11:10 PM
    • #2
    • 12th Jun 17, 11:10 PM
    Use bing, google, yahoo or similar.

    There are many websites, forums etc dedicated to self-build.
    • menachem
    • By menachem 13th Jun 17, 5:17 AM
    • 5 Posts
    • 0 Thanks
    menachem
    • #3
    • 13th Jun 17, 5:17 AM
    • #3
    • 13th Jun 17, 5:17 AM
    I didn't have experienced in buying land but, I think you need invest time and money. Time in a sense that you will have to find architect, choosing element structure and etc.
    • Doozergirl
    • By Doozergirl 13th Jun 17, 7:04 AM
    • 23,548 Posts
    • 65,672 Thanks
    Doozergirl
    • #4
    • 13th Jun 17, 7:04 AM
    • #4
    • 13th Jun 17, 7:04 AM
    You have homework to do. I'm not sure that sitting on land is an 'investment', more a project where you release your profit by building.

    If the land has planning then there is a value on the finished building and a budget for the build. What is left is the value of the land plus 'profit'. You need to decide what you want from that land and if the figures stack up.

    Are you ready for a building project a long way from home (if it is?). Do you have a builder lined up?

    The buyers for land with permission will be either a self-builder who may be prepared for a more modest saving on the final product, or seasoned developers who can take their profit from having the team themselves. Someone employing a builder and expecting a profit will be in a similar boat to most self-builders in that some of the 'profit' goes to paying a third party - the builder .

    Make sure the planning permission hasn't lapsed!
    Everything that is supposed to be in heaven is already here on earth.
    • knightstyle
    • By knightstyle 13th Jun 17, 10:03 AM
    • 4,313 Posts
    • 1,591 Thanks
    knightstyle
    • #5
    • 13th Jun 17, 10:03 AM
    • #5
    • 13th Jun 17, 10:03 AM
    Most important is to talk to the authority who gave the planning permission about it. How long till it expires and what can you build, plus who will pay for services etc.
    • ReadingTim
    • By ReadingTim 13th Jun 17, 10:27 AM
    • 1,830 Posts
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    ReadingTim
    • #6
    • 13th Jun 17, 10:27 AM
    • #6
    • 13th Jun 17, 10:27 AM
    • Why is the current owner selling it, rather than doing as you plan?
    • Why has no-one else bought it and done as you plan?

    I would hazzard a guess that if it was possible to do as you plan, it would have been done by already. If it hasn't been done, it's probably safe to say it can't be done.

    And anyway, what is it they say about things that sound too good to be true...?
    • bridgette1
    • By bridgette1 13th Jun 17, 11:14 AM
    • 2 Posts
    • 0 Thanks
    bridgette1
    • #7
    • 13th Jun 17, 11:14 AM
    • #7
    • 13th Jun 17, 11:14 AM
    Hey there, I only have info about the french market since I live there, this is a good resource to browse and compare plots and land maybe you have something similar for your contry? Hope it helps.
    • the_r_sole
    • By the_r_sole 13th Jun 17, 11:33 AM
    • 2,310 Posts
    • 1,157 Thanks
    the_r_sole
    • #8
    • 13th Jun 17, 11:33 AM
    • #8
    • 13th Jun 17, 11:33 AM
    The short answer is, there is no short answer!
    Buying land and developing it has the most potential reward and the most risk associated with it.
    Lots of small plots don't stack up for developers as the costs of utilities can wipe out profit if you can't build enough houses.
    It really is down to doing your homework and trying to figure out exactly what the potential of the individual plot is (if you are going for private sale be careful with the numbers as there are thresholds for % of affordable units etc)
    • steampowered
    • By steampowered 13th Jun 17, 12:04 PM
    • 1,506 Posts
    • 1,472 Thanks
    steampowered
    • #9
    • 13th Jun 17, 12:04 PM
    • #9
    • 13th Jun 17, 12:04 PM
    There are an awful lot of people that have got badly burned by investing in undeveloped land.

    If you want to do it as a self-build project and there is demand for houses in the local area, that sounds great. But a lot of work is required - it isn't a "buy and forget" investment.
    • AdrianC
    • By AdrianC 13th Jun 17, 12:16 PM
    • 14,785 Posts
    • 13,139 Thanks
    AdrianC
    I've recently come across land for sale in the Hertfordshire area. There is development potential for new built houses and already planning permission but I've never actually been involved in building from scratch.
    Originally posted by mugatool
    Pause, and ask yourself one little question...

    How come you can do this profitably, with no experience, when experienced professional developers can't?

    After all, if they could, then they would already be doing so.
    • movilogo
    • By movilogo 13th Jun 17, 12:26 PM
    • 2,260 Posts
    • 1,535 Thanks
    movilogo
    How come you can do this profitably, with no experience, when experienced professional developers can't?
    It is more of they don't rather than can't. It is similar to ask a BTL landlord how come you buy a house while banks don't even if they have more money than you?

    Developers don't usually buy land for buidling only 2-4 properties. They do it at much larger scale.

    Buying land could be profitable. But make you first network with people who have more experience about it.

    Sometimes you can make profit even if previously planning permission was rejected on the plot. A different planner can simply present a new plan which could be accepted. Then you can sell the land for a profit.

    There are lots of parameters. It is doable if done correctly. Just make sure you know what you are doing. MSE forum is not the best place to discuss this business model.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
    • AdrianC
    • By AdrianC 13th Jun 17, 12:29 PM
    • 14,785 Posts
    • 13,139 Thanks
    AdrianC
    It is more of they don't rather than can't. It is similar to ask a BTL landlord how come you buy a house while banks don't even if they have more money than you?
    Originally posted by movilogo
    Not really. Banks don't tend to build large BtL holdings, merely provide the finance to others to do so.

    Developers don't usually buy land for buidling only 2-4 properties. They do it at much larger scale.
    Smaller experienced developers certainly can and do - especially in the Home Counties. Frequently...
    • ProDave
    • By ProDave 13th Jun 17, 12:46 PM
    • 199 Posts
    • 260 Thanks
    ProDave
    Tell us more? Is this a small plot with permission for just one house? or a bigger site with permission for a small development? and what sort of price is being asked?

    If the land is being sold at true building land price, them most of the profit has been made by whoever bought (or already owned) the land at agricultural prices. As a self build single house buying at building land price there would not be much profit to make. Most self builders like me, are building as a way to get the house we want rather than having to accept what a builder thinks we might want.

    If it is a plot for multiple houses then one option might be to buy it as a whole and then sell individual plots. I know there is a shortage of single plots for self builders in the south so that may be an option?
    • lincroft1710
    • By lincroft1710 13th Jun 17, 2:15 PM
    • 9,480 Posts
    • 7,482 Thanks
    lincroft1710
    Hertfordshire is one of the cheapest areas of the country, with house and land prices at rock bottom.

    The above statement contains 2 inaccuracies. There is a clue to each.

    Unless the land is in the middle of a council or HA development (especially in Stevenage or Hemel Hempstead), with full residential planning permission, it is going to be very expensive. So if it looks like a bargain, beware!
    • abbieJ
    • By abbieJ 13th Jun 17, 2:18 PM
    • 7 Posts
    • 1 Thanks
    abbieJ
    [QUOTE=ReadingTim;72690736]
    • Why is the current owner selling it, rather than doing as you plan?
    • Why has no-one else bought it and done as you plan?

    Exactly. I would ask myself the same question and do a further research before considering this option. It could be a great deal or a total waste of money. Too risky without knowing more about the land I think.
    • abbieJ
    • By abbieJ 13th Jun 17, 2:20 PM
    • 7 Posts
    • 1 Thanks
    abbieJ
    • Why is the current owner selling it, rather than doing as you plan?
    • Why has no-one else bought it and done as you plan?

    I would hazzard a guess that if it was possible to do as you plan, it would have been done by already. If it hasn't been done, it's probably safe to say it can't be done.

    And anyway, what is it they say about things that sound too good to be true...?
    Originally posted by ReadingTim
    Exactly. I would ask myself the same question and do a further research before considering this option. It could be a great deal or a total waste of money. Too risky without knowing more about the land I think.
    • warehouse
    • By warehouse 13th Jun 17, 2:27 PM
    • 2,942 Posts
    • 5,500 Thanks
    warehouse
    I didn't have experienced in buying land but, I think you need invest time and money. Time in a sense that you will have to find architect, choosing element structure and etc.
    Originally posted by menachem
    Hey there, I only have info about the french market since I live there, this is a good resource to browse and compare plots and land maybe you have something similar for your contry? Hope it helps.
    Originally posted by bridgette1
    Exactly. I would ask myself the same question and do a further research before considering this option. It could be a great deal or a total waste of money. Too risky without knowing more about the land I think.
    Originally posted by abbieJ
    Is it the idiots day out today?
    Pants
    • AdrianC
    • By AdrianC 13th Jun 17, 2:30 PM
    • 14,785 Posts
    • 13,139 Thanks
    AdrianC
    Is it the idiots day out today?
    Originally posted by warehouse
    All <10 post newbs. Since we promise to be nice to new posters, I won't suggest they may be building post count prior to spamming.
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