Purchasing land in California can provide several possibilities. You can build on it, sell it or hold it for the future. However, before you make a significant purchase, it’s essential to understand zoning regulations and what you are permitted by law to do with the property that you’re purchasing.
Understanding zoning designations is essential
Before purchasing any land, you must understand zoning designations and the uses allowed under each designation. Common zoning designations include the following:
If the land that you’re investigating has a residential zoning designation, you’re allowed to build homes or other dwelling units. Commercial zoning designations will enable the operation of offices, retail stores, theaters, restaurants and similar buildings. Land with an industrial zoning designation can be used for manufacturing businesses. When you’re interested in farming, buying rural land is the best option.
Zoning designations are often broken down further. Residential zoning may include several subtypes, allowing for different home densities. You may be restricted to building only single-family homes or have the option of having duplexes and other multi-family dwellings on the property. Knowing the different subtypes before buying can help avoid the need for land use litigation.
Finding out about property zoning regulations
Contact the property seller or real estate agent to find out how raw land is zoned. They should be able to indicate if the zoning designation for the land you’re interested in buying is suitable for your objectives. Examining a zoning map of the location can also help you confirm the regulations. You can find this information at your local government offices.
Investing in land and profiting
Having a goal for the land you’re buying is critical. Understanding the risk of the purchase and having patience are also required.
Depending on your investment goals and timeframe, you can implement one or more strategies to profit from your land investment. Taking time to understand zoning regulations can help ensure you don’t make a costly mistake by buying the wrong type of land for your investment goals.