5 Tips for Choosing the Right Piece of Land for New Construction Investment Homes

In many cities across the US, new construction real estate is a solid investment. Part of ensuring the best possible return involves choosing the right location for your new build. Below, you will discover five expert tips for choosing land for a new construction single-family home.

#1 – Think about the Availability of Utilities

The costs associated with setting up basic utilities such as electricity, natural gas, and even internet service can be extraordinary in many locations. One of the first things you should consider when buying land for a new build involves looking at the utilities that are already available. In most urban areas, costs are manageable; in country settings, though, you may find yourself paying quite a bit. For example, in many areas, the costs associated with bringing electricity or water from the roadway to the home will increase substantially with distance. The closer the property to the road, the more affordable the utility setup will be.

#2 – Consider Internet & Mobile Phone Options

Another important consideration – particularly if you want to build in a more rural setting – is the availability of internet access and mobile phone service. In some parts of the country, the further away you build from an urban area, the fewer options you will have. In fact, some areas do not yet have access to cable or even DSL internet, so residents must rely on satellite-based internet, which can be more expensive and much slower than either cable or DSL. Mobile phone service is yet another important consideration; though coverage is available in most of the US, rural areas tend to have fewer options.

#3 – Think about the Importance of Oil & Mineral Rights

Oil and mineral rights are another important consideration. Many real estate investors are unaware that mineral rights – or the rights to the oil and minerals found in a specific plot of land – can be sold separately from the land itself. Be sure to read any contracts for the land very carefully before you sign as the previous owner does have the right to maintain the mineral rights even as he or she signs the property deed over to you. You should take the time to learn more about this – and the laws in the state where you live – before buying any piece of land.

#4 – Learn More about the Neighbors

Depending on the size of the plot of land you’re buying, the neighbors may not make a difference to any prospective buyers. However, if you’re purchasing a plot of land, it’s always a good idea to learn what you can about the people who live nearby. For example, in a rural setting, if the neighbors are farmers, you’ll need to consider the possibility of unwanted odors negatively influencing any potential buyers later on. In an urban setting, there are still other considerations – especially noise levels – that might make it difficult for you to sell the property later.

#5 – Find Out about Local Flooding

Last, but most certainly not least, flooding is a very real concern for many homeowners across the nation. In fact, it’s such a major concern that homeowners’ insurance providers do not typically include flood coverage in their policies; these policies or riders must be purchased separately. Finding out whether or not a piece of property is located in a flood plain can help you determine the expense involved in insuring it against flood damage.

New construction investment homes remain popular across the nation. The better you are at choosing property and building homes that people want – and at prices they can afford – the more you stand to profit. These five tips can help you choose the right piece of property for your new build.