Many people from the United States and other countries are buying a house or property because they often hear that possessing a land ownership certificate can help you get a home equity or mortgage loan with favorable terms. The reality is that not all land ownership certificates are created equal. Some may have more value than others. Here are some land buying tips to help you make the best decision for your needs.
First, you need to understand where the land ownership certificate is issued. In many states and counties in the land registry is controlled by the county clerk’s office. Unfortunately, this system of land ownership records is open to corruption due to the lack of resources. Often, local district level government administrators will be appointed with the purpose of overseeing the land registry. If you are interested in buying property in one of these areas you may not get what you want.
There are two major types of land ownership certificates available in the US: a land contract and an uncertified land contract. The former is used when you buy an existing home loan from a bank or other lender and transfer the deed to a designated piece of property. Usually, the bank will require an appraisal and other documentation before it will release the funds. With an uncertified land contract you can bypass this process and instead transfer title to an individual who will hold all the required deeds and appraisals.
It’s important that if you buy an uncertified land contract that the seller is whom you’d really like to do business with. Most buyers of this type of property will look to quickly flip the property and pocket any profit rather than spend months negotiating the purchase as an individual investor. Buying an existing home loan and transferring it over to an individual who will hold the deed gives you more control over your own money and therefore increases your chances of making a profit in a shorter period of time. Also, the government holds all of the taxes associated with the property so this also reduces the amount of time and money you’ll spend on research and property tax appeals.
There are many online resources that provide helpful tips for purchasing an uncertified land ownership certificate. This includes information on what steps need to be taken before buying the property and how the sale will affect your personal tax bill. Some of these tips include:
When purchasing an uncertified land ownership certificate it’s important to remember that real estate investment is a highly technical field and requires specialized knowledge and experience. Because real estate is a highly specialized field, there is no substitute for working with someone who has more experience than you. Even if you’re able to find a trusted real estate broker or banker to work with, you should still use caution and do your homework before handing over any of your hard earned money to them. A good real estate agent or broker will be able to help guide you in choosing the best loan option for your needs and will also be able to help lower your mortgage rate as long as you pay down the loan over the course of a couple of years.
One of the easiest ways to purchase uncertified land ownership is to purchase an existing home loan through a private developer. Developers are often willing to sell their homes as is or even offer you a readymade house instead of selling you one from the developer. The advantage of purchasing an existing home loan is that you’re able to pay a lower interest rate and longer repayment period since you’ve already gone through the investment process. An existing home loan also saves you from paying the application fees and stamp duty that would be incurred when you purchased a readymade house from a private developer.
If you’re looking to purchase a piece of land at a low price then you might want to consider approaching a local land distribution committee. Often these committees are made up of local businessmen who have an interest in developing certain areas around their locality. They have large portfolios of properties which they are willing to sell if you pay the right price for them. You can often find a land distribution committee by searching your local phone book or online directories.