Whether you are building a new office complex or want to build a new home for your family, building on an existing lot can be beneficial. Doing so may enable you to yield maximum return on your investment. What are some good reasons to build on an existing lot?
You Already Know That Its Big Enough and Properly Zoned
Before you build, you should know precisely how much space you will need to build on. Buying an existing lot means that you already know how large the lot is and whether it is zoned properly for what you want to do. For instance, if you want to build a commercial office building, you don’t want to buy a lot that may be zoned commercial or may be zoned residential based on the whims of a city council.
It May Already Have a History of its Own
The lot that you want to build on may already have had one or more buildings or houses already built on it and torn down. In some cases, historic buildings or homes could be torn down because they were poorly maintained or because a natural disaster toppled them. In such a scenario, you have a chance to use that history to your advantage.
You Know If It Has the Potential to Appreciate in Value
If the lot is in the right location, it could have the potential to appreciate in value. This means that you could sell the land for a profit even if your building project doesn’t work out for whatever reason.
It May Already Have a Proper Foundation to Build On
Just because there isn’t a building or existing home on the lot doesn’t mean that there isn’t a foundation already in place. This can reduce the amount of time that it takes to complete the building as well as the cost to build it.
You May be Able to Split the Lot
If the building that you plan to put on the land is smaller than the total lot size, it may be possible to split that lot and use it for other purposes later on. For instance, you may be able to build a warehouse on one side of the lot and build a store or outlet center on the rest of the lot. You may also decide to build a house or duplex on that unused portion depending on how it may be zoned.
Building on an existing lot can be the best way to ensure that you get the most from your project. You know what you are going to get, you know whether or not it has been a viable spot to build in the past and you may have the opportunity to turn the lot into multiple streams of revenue for yourself or your business.