Buying land for sale in Northern Ontario
If you are interested in buying land in Ontario to build your retirement home as an investment or for other commercial purposes, much research and surveys are required. After you get your financing right, here are a few things you might want to look out for during your research in purchasing land in northern Ontario;
Types of Land
Raw land
As the name suggests, raw land has never been developed, and therefore, you should not expect to find utilities like power and water in them. Raw land is owned privately, and you might not even find a road leading to the ground.
Vacant land
Vacant land is serviced just a little bit, and you might find power and a source of water. In an empty land, you might find a road or even septic depending on the amount of development done. On vacant land, there are no structures like houses. The owner of vacant land is also a sole private proprietor.
Crown land
Northern Ontario land for sale mainly comprises Crown land. The provincial government owns crown land. Crown land has a lot of restrictions on it which means that any purchase or rental of the land must be reviewed under the Ontario crown land disposition policy. The good thing is that to ensure that the public can afford crown land, it is sold at market value.
If you are wondering what type of land you should invest in or purchase, then you might want to check out for restrictions. If you buy land based on your budget, raw land is the most affordable since the more minor the development on the ground, the cheaper it might be.
Financing Land In Northern Ontario
Land loans
Land loans are the most common form of financing for land in Canada. Land loans, however, most work for crown lands since, for raw and vacant lands, it is difficult to attach the value of the land as collateral for the loans. The type of land you choose will determine the down payment you will have to make. Raw land requires a higher down payment than the rest of the land and a higher interest rate.
Personal loans
If you can afford it, you have an option to pay for the purchase in cash or take out a personal loan to add to your savings to complete your purchase. An easier way will be if you own a home where you might be allowed to use a home equity line of credit to get a loan to purchase land. Mortgage refinance can also assist in your land purchasing.
Seller financing
As the name suggests, the landowner can act as your lender. You will give them a down payment on the land and then agree on how much income you will make after a specific time, possibly a month, as you would while paying a bank loan.
Conclusion
Depending on the purpose of your purchase, you decide on your choice of the land you might purchase, considering access, the type of soil, and development, among other things.
You May Also Enjoy
Weekly News Roundup – 19/04/24
Breaking Property News – 18/04/24
Breaking Property News – 17/04/24
Rightmove’s weekly mortgage tracker
Rightmove comment on inflation reducing to 3.2%
