Find out the Zoning Laws Before You Invest

Posted by frontier on Mar 25th, 2008
2008
Mar 25

Since zoning is not covered in an abstract of title or title insurance policy, you will have to do some research on your own to ensure that the land you want to acquire is in an area that allows for the activities you want and prohibits those you want to avoid.

All zoning regulations for a particular area are kept by the county board of supervisors, the zoning commission, the planning commission, or the building inspector. In Nevada, its the zoning commission. Ask to see the master plan of the entire area so you can determine the direction of future development. To determine the zoning for a specific parcel of land, you should have its legal description, which you can get from the seller or real estate agent. You might then have to see the tax assessor and the the tax or parcel number for the land. In Nevada, it’s the Assessors Parcel Number or APN.

Zoning restrictions to be aware of:

Seasonal Dwelling Restriction: Some secluded area are zoned for second-home summer use only.

Number of Homes Permitted: Most rural areas restrict the number of homes that can be built in an area. For example, only one dwelling will be permitted for every 20 acres of land, or one dwelling per parcel, regardless of size.

Minimum Size of a Parcel for a Dwelling: No home can be built on a parcel of less than a specified minimum area.

Prohibition of Further Subdividing: Your parcel might already be a size that prohibits further dividing. If you plan to split off and sell a parcel to raise money to pay for your remaining parcel, be sure the zoning will allow for this.

Floodplain Zoning: An area with a history of flooding might be zoned as a floodplain on which all home construction is prohibited.

Trailers & Mobile Homes: Zoning laws often prohibit the use of mobile homes, trailers, buses, and vans for dwellings.

As always, do your zoning research for rural land before pulling the trigger.

Since Zoning is not covered in an abstract of title or title insurance policy, you will have to do some research on your own to ensure that the land you want to acquire is in an area that allows for the activities you want and prohibits those you want to avoid

Media Doom & Gloom

Posted by frontier on Mar 19th, 2008
2008
Mar 19

Could this real estate market get much worse as the media is portraying?


Every time I pick up a business or real estate publication it speaks of doom and gloom. Homeowners at record foreclosure rates, banks walking away from homes, Bear Stearns, homeowners need bailing out, bird flu (wait, what happened to bird flu?), etc.


I think the truth is the media is usually 6-12 months late to any cycle, and then make matters worse by crushing consumer confidence.


I know for my business, that 2007 was absolutely miserable for sales compared to the first quarter of 2008. Why that is I don’t know.


Let’s look at some positive news before we assume we are heading towards the next Great Depression (which is what a friend of mine predicted). The fed is doing everything they can to bail us out. They are lowering rates, politicians are talking about bail outs, and even JP Morgan is helping out troubled overexposed Bear Stearns. So the big question is where is and how do we identify the bottom in this real estate market?


I think we can look at recent history from the real estate bubble and how the media fed this frenzy and turn it to our advantage. For years, the media kept pumping us with all of this great news about the housing market, how investors were making small fortunes flipping homes and land, and how we were all improving our lives spending the bloated home equity we acquired in our homes.


Now the opposite is happening. Housing and credit problems, Countrywide mortgage scams, rampant fraud, banks in trouble, and 10-20% pricing declines across the board. Well, I know my development friends are circling like vultures picking up land from out of cash developers for 33 to 50 cents on the dollar. Why are they buying now? Why not wait a little longer?


This is what they do professionally. If we haven’t hit bottom, why not wait a few more months? I think they are buying now because the deal makes sense for them and they instinctively know in real estate you make your money on the buy not the sell. If they can hold on for 2-5 years while the market shakes out they know they will be positioned beautifully for the real estate rebound. Then, when the media starts hyping up the great deals, we know we are in the next cycle already and way out of the cellar.


I’d be curious to know what you think of this market and when you suspect things will bounce back?

Never Buy Land Without a Survey

Posted by frontier on Mar 14th, 2008
2008
Mar 14

Never Buy Land Without a Survey

Never purchase a piece of land without being sure where its surveyed boundaries are located. Most land ownership problems have arisen from boundary disputes. The three most common areas of litigation for rural property owners involve water rights, easements, and boundary lines.

Laws typically require only that a deed contain a legal description of the land that defines the parcel in such a way that it cannot be confused with any other piece of land. However, this description does not tell you where the the boundaries are located on the ground. The only way to know, is by a survey.

Surveys are expensive, and therefore many rural parcels are sold without them, even though they are critical to the Buyer. Our Nevada property has been staked and surveyed prior to sale for the safety, and security of the buyer. Plus, by spending the extra money, I’m insuring myself against potential litigation arising from boundary disputes.

Click here to learn more about the Principal Meridians of the U.S. Rectangular Survey System.

 

 

 

 

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