Owning nonresidential property can certainly be lucrative for an investor in Massachusetts. For this reason, many investors purchase vacant land with the intention of eventually building commercial buildings on it. Then, once their properties are erected, they can generate money from it in the form of commercial real estate leases or simply sell the property. In other cases, investors simply hold onto the vacant land until they can sell it for a much higher price than they purchased it for. Either way, here are a couple of tips for purchasing vacant land.
First, for those interesting in developing the land, they may want to search for a revenue-generating use of the land pre-development. For instance, they could lease the land. Alternatively, they could use the land for agricultural purposes, billboards, parking or even self-storage to provide income prior to its development.
Second, the owner of the land will want to complete a title search as well as buy title insurance. This protects him or her from monetary loss in the event that defects are found in the property’s title. In addition, for owners that are planning to build on their land, it is critical that they ensure that their lots are buildable and qualify for permits. In addition, they may want to look for zoning changes or environmental restrictions that may affect their properties.
The commercial real estate world can certainly be exciting, but it can also be tricky. After all, it is a complete different animal than residential real estate. An attorney can provide guidance to those who are planning to buy or sell commercial real estate in Massachusetts so that their legal rights and financial best interests are protected each step of the way.