8 CRITICAL ERRORS THAT 90% OF PEOPLE MAKE WHEN BUYING LAND.
1. The credibility of advertising with too low price.
How many of you haven’t met an advertisement like this: “Land with active communications (electricity, main gas, water mains) on the shore of the lake – a couple of hundred dollars”? You need to quickly call, arrange a viewing! But does everybody have a question: “Why would this, if there is a consistently high demand for land with communications in scenic places, did the owner decide to part with it for a symbolic price – 10 times lower than the market price”? At best, arriving at the viewing, you will see a bare field overgrown with weeds, from which to the nearest lake at least 5 km. You can only look at the promised site in the diagram, because it is impossible to drive up to it – there are no roads. From communications you will show only the technical conditions, and then, if you’re lucky. In the worst case, you will be faced with a legally problematic land: a bad legal history, courts, a mortgage of land in a bank can also cause a dumping price.
Consequence: minimum – wasted time and disappointment; maximum – the purchase of promises that will not come true, because holding these promises for the money is not possible. Yes, no one was going to perform.
2. “The main thing is to buy land, and the rest will follow.”
A very common way of “obshashivaniya” land assets of large landowners – selling delimited by several hundred land plots without roads and communications. They do not want to do this, because it is very difficult, expensive and long, and they have too much land. What distinguishes them from the first case is that they do not deceive the buyer and promise him nothing. Instead of low prices for “empty” plots, they draw the following perspective to buyers: when all plots are sold, the owners will unite in DNT or SNT, choose an active chairman, develop the means, carry out communications and build roads. But, as the extensive practice shows, nothing happens then. Making all owners to participate in the improvement of the village is practically unrealistic. Either all the work is financed only by a part of the residents, who need it most, or the process stops altogether.
Consequence: you risk to buy a plot in the open field, which would never become a village. The alternative is that you will have to finance the improvement of the village for yourself and for some more careless neighbors.
3. “Individual housing construction is good,” dacha “is bad.”
A common misconception related to the lack of a clear understanding of the status of various categories and types of permitted use (VRI) of the land. “IHC” (Individual housing construction) is the type of permitted use within the category “land settlements”. “Country construction” is a type of permitted use within the category of agricultural land. And in fact, and in another case, a certificate of ownership of land is issued, the construction of an individual house and outbuildings, summing up all communications, registration, year-round living is allowed. However, before building a house on the IHC site, it is necessary to coordinate the project and obtain a building permit from the local administration. This procedure is far from free and can take up to a year. On the dacha land, the owner can begin construction immediately after receiving the certificate of ownership, since the project of the whole village has already been approved. An important advantage of dacha land is a lower rate of land tax.
Consequence: by purchasing an individual housing construction plot, you complicate and increase the cost of the construction process, and pay higher taxes, with no clear advantages over the “dacha” land.
4. Neglect of the legal status of the land.
Depending on which legal model of land sale the developer has chosen (he is the owner of the land plot), there are two main types of ownership of summer cottages: common share and individual. If the developer, prior to the start of the project, created DNP, and contributed the entire array to the authorized capital of this NPD, then each buyer is forced to enter DNP and acquire a share in the right to common share ownership. Another option involves individual ownership of each individual plot, since all plots are dissociated and a certificate is issued for each one. DNP in such settlements is also created, but only to solve joint utility issues. In fact, such settlements are a conglomeration of independent owners, where membership in the NPD is voluntary and the ownership right is indisputable. The first option is more risky, because each owner largely depends on the will of the community and its leaders, incl. in terms of managing their site. Sometimes buyers do not pay enough attention to these subtleties when choosing a site.
Consequence: acquiring a plot in the form of a share in the right to common-share property, you risk becoming dependent on certain decisions and rules adopted before you and without your participation, and all your actions with the plot must receive approval from the general meeting.
5. “The village should have its own infrastructure.”
In the villages located in remote, remote places, where there is only one village worker for 20 km, the developer is forced to build his own infrastructure. Otherwise he will not sell anything. Of course, this is presented to customers as an undeniable benefit and advantage. However, sellers are silent about how much the maintenance of this infrastructure will cost the residents, and what the future fate of the facilities will be if they turn out to be unclaimed residents. In the villages with their own infrastructure, the communal payment reaches 1000 – 1500 per month. Infrastructure facilities such as shops and restaurants, as a rule, exist as a separate business and should be profitable, or at least pay for themselves. If the villagers can not provide the desired profit, then people start to enter the territory from outside. Ideally, the village is located in a quiet picturesque place, but at the same time in the immediate vicinity there is all the usual infrastructure of the citizen. This is a very valuable combination, and is not common.
Consequence: choosing a site in the village with its own infrastructure, you have to bear the cost of maintaining it, even if you do not use it, and your village with the risk of becoming a territory accessible to all comers.
6. “Only” big water “.
Do you dream of leaving the house early in the morning, and going down with a fishing rod to the river, or on a hot summer day to relax with your family on the lake shore? Not you alone. Rest by the water is very popular. Therefore, buying a plot in the immediate vicinity of the natural reservoir (river, lake), be prepared for a noisy neighborhood with companies of tourists, and the mountains of garbage that remain after them. No one has the right to block access to the shores of reservoirs. And if there is no other way to the coast, except through your village, then you will have to completely give up access control on your territory. Of course, the sellers of the settlements near the water will convince you that the issue of access of unauthorized persons to “your” running territory is settled. However, it should be remembered that there are no legal ways to block access to the water for everyone. And clearing the coastline from the garbage will inevitably fall on the shoulders of the villagers. Of course, a reservoir is needed, preferably a large one, and not one. But it is better that he was at a distance of 1 to 5 km. from your village.
Consequence: choosing a village in the immediate vicinity of a natural reservoir, you risk getting unwanted neighborhood in the form of noisy companies of tourists, unsanitary conditions in the coastal zone, or even a stream of strangers going to the “big water” on the territory of your village.
7. “A big village is bad.”
Undoubtedly, small villages have a number of advantages. However, there are also disadvantages, and you need to know about them. The main disadvantage is significant payments for the maintenance of the settlement in terms of per capita, since There are expenses that do not depend on the number of households. For example, maintenance of engineering networks. In small villages, the communal payment is at least 1 000 – 1500 per month. In addition, choosing a site in a small village, look around. And if you see free fields, be sure that over time they will also be built up, and “your” small settlement is most likely only the first stage of a larger project. Laying engineering communications to any village is very troublesome and costly. In a small village, these costs do not pay off.
Consequence: buying a plot in a small village, be prepared for significant utility payments, and the further development of undeveloped territories nearby.
8. “Plumbing and sewage must be central.”
Leaving the city in pursuit of clean air and nice looking landscapes, most of us are not ready to part with the usual urban amenities, mainly engineering communications. Therefore, many buyers consider only those villages where “all communications are central”, avoiding options with local treatment facilities and individual wells. However, you should know that the “central” water supply and sewerage in a country village is absolutely not an analogue of urban life support systems. In fact, these are the same local septic tanks and wells, only on a larger scale. These systems are extremely expensive in design and construction, so the developers of the settlements accept this only because of necessity, namely:
- too deep occurrence of drinking aquifer;
- Finding nearby a landfill, cemetery, cattle cemetery, livestock farm;
- finding a natural reservoir nearby that provides water to populated areas.
The smooth operation of these systems depends on a number of factors: on weather and environmental conditions, to the diligent work of the Criminal Code and the consciousness of the neighbors. Villages with a centralized water supply and wastewater disposal also have a number of significant drawbacks, for example:
- the opacity of tariffs and payments for the maintenance and technical support of these systems;
- dependence on the Criminal Code, which can use the full or partial disconnection of these systems as an argument in conflicts with residents of the village.
- Consequence: when acquiring a plot or house in a village with “central” water supply and sewage, find out whether there are no landfills, cattle cemeteries, or a cemetery nearby, and also be prepared for:
- interruptions in the operation of the system, especially in extreme weather conditions;
- the weakening of the pressure of water, especially during the irrigation of gardens;
- to nobody regulated tariffs for water supply and sewage, established by your Criminal Code;
- high utility payments, much of which goes to the maintenance and repair of these systems;
- in case of conflict with the Criminal Code, be disconnected from the centralized water supply.