Tuesday, March 4, 2014

When do we buy land for our project?

Many people look at the cost of a building and forget that it can largely vary based on the building site the building will sit on. The main drivers of cost to projects is the cost of the land itself and the value it offers compared to comparable lots and your ability to yield enough profit to cover the cost of the land investment.

For example, it doesn't make sense to buy prime land with major exposure if your are going run an internet business that doesn't ever receive customer traffic in person.

The land can also affect your building cost dramatically.  If you buy land that needs to be raised up in elevation because it is to low to build on then a cheap piece of property will incur many extra costs for your project.

In that same respect the soil conditions can affect your building design.  If the soils cannot support your building properly then you will have to make up for that with additional concrete. 

The basic rules of thumb for buying property is first location, then make sure you have the necessary utilities to the property so you don't have to incur additional cost in utility infrastructure.  Then make sure the land is close to the elevation you will need and that the
soils can support your building.

FED does free consultations to help you buy land that will suit your building needs in the future.
Contact us today at (989) 246-9122.


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