The Pros And Cons Of Building On Undeveloped Land
When looking for a property for sale, one option you may consider is land that hasn't been developed. Undeveloped land for sale has both pros and cons so read on to learn more.
Pro: Chances for Customization
Dealing with the existing footprint of a building can lead to its own set of headaches. You will always be stuck with the decisions someone else made, even if you do extensive renovation or even demolition. By going for land that hasn't been developed, you can place structures right where you want them. Likewise, all desirable features for the business or house you'll be building are on the table.
Con: Setting Up Utilities
If you're dealing with 100% undeveloped land, that may mean there isn't even water or power running into the lot. Utility companies are happy to help you hook up for a price. Running main water from a city supply, for example, runs around an average of $1,400. Depending on the amount of capacity needed and how far the water has to be run, you may be on the hook for thousands more. And that's before you even address the question of what you're going to do with the water system inside the building. Similar issues may apply to hooking up electricity, natural gas, internet and even cable television.
Pro: Investment Opportunities
Land for sale in a spot that hasn't been developed may have a bit of a first-mover advantage. You're unlikely to lay out a ton of cash to buy a location, and most of the costs that will go into it will be from new construction. Especially in areas that are just starting to boom economically, building on newly developed territory may allow you to turn a significant profit when you decide to move on.
Con: Grading and Engineering Concerns
It's possible that you'll be the luckiest duck in the pond when it comes to having perfect land to build upon. Realistically, though, there's a reason someone didn't build there before. Easy-to-develop land, especially in highly desirable areas, is hard to come by. That means you'll likely have to invest in engineering the land, doing things like grading. In extreme cases, the bedrock and soil may have to be engineered to provide the necessary support for buildings.
Pro: Space
Over time, lots tend to get subdivided until there's no space left. Buying the land while it's still open means you decide how far away your neighbors will be.