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The Case for Investing in Vacant Land

When it comes to buying property, single-family houses seem to get all the glory. They tend to get the most advertising attention, yet there’s another property-type that can be an ‘unsung hero’

when it comes to investing in the real estate market.


I’m talking about vacant land! There is a different way to approach investing in vacant land, and I’m here to guide you on the best ways to do so. In this blog I will cover the difference between residential and commercial land purchases, what to look out for when seeking vacant land for investment, as well as highlight an awesome piece of vacant land that we have listed. 





 

Residential vs Commercial

Residential real estate is markedly different from commercial real estate, because these land-types suit completely different needs. Once you know these crucial differences, you will be better equipped to decide which avenue might work better for your particular investment portfolio.


Residential real estate is typically singular in its allowable use, which is to accommodate residential construction and subsequent habitation. The differences in residential land types relate to that lot's ability to accommodate density. Some land will be zoned for single-family usage only, some will accommodate the development of townhomes or condos, and some have multiple allowable uses. When looking at property for sale in your local area, such as land for sale in Vernon, be sure to check the zoning bylaws as you go. You also want to be sure that even if the zoning is consistent with your needs, that the lot will allow for the size of dwelling(s) and outbuilding(s) that you intend to construct. 


Commercial real estate in most real estate markets, including in the Okanagan, is subject to a more focused and directed due diligence process. You not only need to be double checking the zoning bylaws to ensure your uses are approved (as well, there are far more commercial designations than residential!), but you also need to be aware of the foot and vehicle traffic and how that relates to your business. As well, commercial real estate purchases may require a higher down payment than your typical residential lot. Be sure to check-in with your financial advisor and trusted Realtor® to know where you stand before commencing any type of search process. It is important to note too that commercial real estate, for the purposes of this blog also includes land for sale approved for industrial use. 


Key Benefits of Investing in Vacant Land

Highest and Best Use

When it comes to developed land, you’re often severely restricted in the control of what’s called the “highest and best use” of a property. For example, if you buy a residential property with a house that’s situated on that land in an unfavourable way (ie. A house that sits near the back of a lot, restricting your ability to have a backyard) it would not be financially savvy to change that. It would simply be too costly. When you own the land however, you can ensure that you control the best way to use that property from the beginning, thus positively affecting your future investment prospects.


Less Maintenance

When you purchase previously-developed land of most kinds, upon conveyance you will likely have immediate overhead. If the commercial property you just bought needs a complete renovation, you will still be subject to things like electricity and hydro bills while you renovate. With vacant land however, you save a great deal in interim overhead. This can bring peace of mind to costly projects, allowing you to focus your time and energy where it most matters: getting the most out of a particular property. 


Lower Barrier to Entry

While vacant land sometimes does require a larger down payment than your typical residential purchase with a mortgage, it is still a lower barrier to entry than buying previously developed land overall. Because there is no structure to deal with, you save a lot of money in mortgage interest and other things, like mortgage origination fees. This makes vacant land a great investment for those that do not want to expose themselves to debt at this particular point in time.


Buying Vacant Land in Vernon & The Okanagan

Speaking from past experience and statistical validation, investing in land in the Okanagan has proven to be an excellent opportunity to diversify your investment portfolio. Okanagan land for sale is increasingly sought after in national and international markets because of the unbelievable potential for future growth. Our beautiful valleys are becoming less and less of a “best-kept secret” and this is attracting worldwide attention. 




Our cities are densifying, particularly in the Kelowna market, which has a ripple effect on zoning bylaws throughout each city and the valley as a whole. Vernon has the unique position of having the most development potential in terms of available land space, bringing both opportunity and unique challenges. Why not meet these challenges by jumping in and becoming a part of this tremendous growth?


Featured Listing

9159 Smith Road

This is a stunning waterfront lot with so much potential. With 114’ of waterfront, it is nestled between two homes that set a beautiful standard for the street. It also has sewer nearby available to connect to and has two titles! Follow this link for more information!


 

Conclusion

Investing in land is a brilliant way to catch the sustainable wave of business flowing into our communities. We all have a desire to have an impact on those around us, and vacant land is a particularly good way of being able to be a force for good here. 


Our real estate markets in the Okanagan are resilient and boundless in their opportunity. Be a part of this opportunity by considering vacant land to be your next investment purchase!


Your trusted Vernon Realtor®,


Louisa Cochrane PREC








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Declaration period to Begin for BC Speculation & Vacancy Tax ...


Here is important, time sensitive information on the completion of a declaration and registration of an exemption regarding the speculation and vacancy taxation.... click on the link below for detailed information....


Speculation & Vacancy Tax declaration - click here




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BC Home Sales Continue at Slower Pace

Vancouver, BC – December 14, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 5,179 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in November, down 33.1 per cent from the same month last year. The average MLS® residential price in BC was $718,903, a decline of 1.9 per cent from November 2017. Total sales dollar volume was $3.7 billion, a 34.3 per cent decline from November 2017.


“BC households continue to struggle with the sharp decline in purchasing power caused by the B20 mortgage stress test,” said Cameron Muir, BCREA Chief Economist. “Most BC regions are now exhibiting relative balance between supply and demand.”

Total active residential listings were up nearly 31 per cent to 33,500 units in November, compared to the same month last year. However, it should be noted that this compares to 2017, when active listings for the month of November were at their lowest level in more than 15 years.

Year-to-date, BC residential sales dollar volume was down 23.1 per cent to $53.4 billion, compared with the same period in 2017. Residential unit sales declined 23.6 per cent to 74,847 units, while the average MLS® residential price was up 0.7 per cent to $713,302.

-30-

For more information, please contact: 

Cameron Muir  
Chief Economist  
Direct: 604.742.2780  
Mobile: 778.229.1884  
Email: cmuir@bcrea.bc.ca  

The British Columbia Real Estate Association (BCREA) is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province's 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada's real estate boards to ensure maximum exposure of properties listed for sale.


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Zoning By-Law changes for cannabis

approved by Council



(December 11, 2018  ... News)

Vernon City Council has approved the changes to the Zoning Bylaw to permit cannabis sales, processing and cultivation in many of its commercial and industrial zones....


Click Here - for full story........


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RLP Downtown Realty

Disclosure of Representation in Trading Services Form

A complimentary introduction to the Real Estate Council of British Columbia's new requisite form meant to inform consumers about the types of representation they may receive from a REALTOR in a real estate transaction.


Helping You is What We Do!


Click Here -  Disclosure of Representation in Trading Services


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BC Home Sales to Rise in 2019 
BCREA 2018 Fourth Quarter Housing Forecast

Vancouver, BC – November 8, 2018. The British Columbia Real Estate Association (BCREA) released its 2018 Fourth Quarter Housing Forecast today.

Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 23 per cent to 80,000 units this year, after recording 103,768 residential sales in 2017. MLS® residential sales are forecast to increase 12 per cent to 89,500 units in 2019. The 10-year average for MLS® residential sales in the province is 84,800 units.


To read the entire article -  click here..


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New Legislation makes it clear:  Farmland is for Farming.......




Legislation introduced on Monday, Nov. 5, 2018, makes it clear that land in the Agricultural Land Reserve (ALR) is for farming and ranching in British Columbia, not for dumping construction waste or building mega-mansions.

To read the entire article, see below....


Click Here to read entire Article


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Province targets speculators and vacant homes, supports housing affordability


The British Columbia government has introduced legislation to tackle speculation in B.C.'s housing market and help turn empty properties into homes for people...


https://news.gov.bc.ca/releases/2018FIN0075-002014

BCREA’s Position on Drug Operations

When a property has been involved in drug production, it can pose serious health and safety risks to the public resulting from mould, chemicals thrown out in the backyard, electrical fires and invasion by criminals looking for drugs, even if the property is no longer being used for drug production. It’s important for members of the public to be informed if a property they are interested in moving into was ever identified as having a history of drug production. Unfortunately, there is no consistency across the province on how municipalities make this information available, nor is there a provincial standard of remediation for buildings used to produce drugs.


To read full article - Click Here

The Case for Investing in Vacant Land

When it comes to buying property, single-family houses seem to get all the glory. They tend to get the most advertising attention, yet there’s another property-type that can be an ‘unsung hero’

when it comes to investing in the real estate market.


I’m talking about vacant land! There is a different way to approach investing in vacant land, and I’m here to guide you on the best ways to do so. In this blog I will cover the difference between residential and commercial land purchases, what to look out for when seeking vacant land for investment, as well as highlight an awesome piece of vacant land that we have listed. 





 

Residential vs Commercial

Residential real estate is markedly different from commercial real estate, because these land-types suit completely different needs. Once you know these crucial differences, you will be better equipped to decide which avenue might work better for your particular investment portfolio.


Residential real estate is typically singular in its allowable use, which is to accommodate residential construction and subsequent habitation. The differences in residential land types relate to that lot's ability to accommodate density. Some land will be zoned for single-family usage only, some will accommodate the development of townhomes or condos, and some have multiple allowable uses. When looking at property for sale in your local area, such as land for sale in Vernon, be sure to check the zoning bylaws as you go. You also want to be sure that even if the zoning is consistent with your needs, that the lot will allow for the size of dwelling(s) and outbuilding(s) that you intend to construct. 


Commercial real estate in most real estate markets, including in the Okanagan, is subject to a more focused and directed due diligence process. You not only need to be double checking the zoning bylaws to ensure your uses are approved (as well, there are far more commercial designations than residential!), but you also need to be aware of the foot and vehicle traffic and how that relates to your business. As well, commercial real estate purchases may require a higher down payment than your typical residential lot. Be sure to check-in with your financial advisor and trusted Realtor® to know where you stand before commencing any type of search process. It is important to note too that commercial real estate, for the purposes of this blog also includes land for sale approved for industrial use. 


Key Benefits of Investing in Vacant Land

Highest and Best Use

When it comes to developed land, you’re often severely restricted in the control of what’s called the “highest and best use” of a property. For example, if you buy a residential property with a house that’s situated on that land in an unfavourable way (ie. A house that sits near the back of a lot, restricting your ability to have a backyard) it would not be financially savvy to change that. It would simply be too costly. When you own the land however, you can ensure that you control the best way to use that property from the beginning, thus positively affecting your future investment prospects.


Less Maintenance

When you purchase previously-developed land of most kinds, upon conveyance you will likely have immediate overhead. If the commercial property you just bought needs a complete renovation, you will still be subject to things like electricity and hydro bills while you renovate. With vacant land however, you save a great deal in interim overhead. This can bring peace of mind to costly projects, allowing you to focus your time and energy where it most matters: getting the most out of a particular property. 


Lower Barrier to Entry

While vacant land sometimes does require a larger down payment than your typical residential purchase with a mortgage, it is still a lower barrier to entry than buying previously developed land overall. Because there is no structure to deal with, you save a lot of money in mortgage interest and other things, like mortgage origination fees. This makes vacant land a great investment for those that do not want to expose themselves to debt at this particular point in time.


Buying Vacant Land in Vernon & The Okanagan

Speaking from past experience and statistical validation, investing in land in the Okanagan has proven to be an excellent opportunity to diversify your investment portfolio. Okanagan land for sale is increasingly sought after in national and international markets because of the unbelievable potential for future growth. Our beautiful valleys are becoming less and less of a “best-kept secret” and this is attracting worldwide attention. 




Our cities are densifying, particularly in the Kelowna market, which has a ripple effect on zoning bylaws throughout each city and the valley as a whole. Vernon has the unique position of having the most development potential in terms of available land space, bringing both opportunity and unique challenges. Why not meet these challenges by jumping in and becoming a part of this tremendous growth?


Featured Listing

9159 Smith Road

This is a stunning waterfront lot with so much potential. With 114’ of waterfront, it is nestled between two homes that set a beautiful standard for the street. It also has sewer nearby available to connect to and has two titles! Follow this link for more information!


 

Conclusion

Investing in land is a brilliant way to catch the sustainable wave of business flowing into our communities. We all have a desire to have an impact on those around us, and vacant land is a particularly good way of being able to be a force for good here. 


Our real estate markets in the Okanagan are resilient and boundless in their opportunity. Be a part of this opportunity by considering vacant land to be your next investment purchase!


Your trusted Vernon Realtor®,


Louisa Cochrane PREC








Comments:
No comments

Post Your Comment:

Housing Supply Not Keeping Pace With Demand in Most BC Regions...

 

 

Vancouver, BC – June 13, 2017. The British Columbia Real Estate Association (BCREA) reports that a total of 12,402 residential unit sales were recorded by th

e Multiple Listing Service® (MLS®) in May, down 7.9 per cent from the same period last year. Total sales dollar volume was $9.33 billion, down 4.0 per cent from May 2017. The average MLS® residential price in the province was $752,536, a 4.2 per cent increase from the same period last year....

 

Click here to read entire article...

The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.