Living in a high priced city means that everything costs more than the average. If you want to transition from renting to owning real estate, you will need to be a little savvier if your budget is lower than the city average. High competition cities can often lead to bidding wars, which means an increase in price on nearly any property. This will make many properties beyond the reach of a low budget. Invest in a lot or a plot of land and building your own low-cost home can be a better fit for a budget buy. Paper lots can be some of the cheapest lots to purchase in any city. If you are interested in buying a paper lot, here are some questions that you should ask first.
How many houses versus lots in the neighborhood?
Paper lots are lots of land for sale that are undeveloped and do not have street access. Before you go to assess the plot of land, you should ask your real estate agent how many homes are in the actual neighborhood versus how many empty lots are still in the neighborhood. If the neighborhood is entirely undeveloped, you may find that this causes issues if developers purchase the land at a later date, or if the neighborhood is never properly built up.
Are utilities nearby?
One of the things that you will need on site immediately is utilities. Though you will have to do the work to extend the utilities to the appropriate location, gas, water, and electricity should be available for your street. Speak with the electricity company and the water company to ensure that your basics will be available once you begin to build a house. If there are utilities nearby, the utility companies can let you know the cost and work that will be necessary to get your lot fully functional.
Where is the closest road?
You and your real estate agent will need to take a look at the overall lot and the structure of the roads nearby. With paper lots, you will need to create your own road access. If there are no roads for several blocks, this can come at a high expense to you to pave proper road access. If there is a road that leads to your neighborhood, but not your lot, the price of paving the road will be low and can easily be included in the pouring of the foundation of your home.
For more information, contact local real estate agents like Charles Vivash PREC.