Land For Sale Victoria BC
By: Clearway Law
Tags: Property Investment, Property, Property Management, Property For Sale, Property Development

Have you been looking on the MLS multiple listing service for land for sale in Victoria BC? You can use ClearWay to connect with a Realtor to find land for sale.

These Realtors can provide you with the property information on Vancouver Island. We had some Realtors put together the information below to answer common questions about land for sale.

We are here to educate you on Victoria’s real estate market and real estate law.

A Realtor put together the answers to common questions below. Some of these questions are strange. However, it’s what people are looking for! If you really want proper advice, you should fill out the form on the side of this page. A Realtor (or real estate lawyer) will contact you directly.

Is investing in land a good idea?

Investing in land is one of the safest and low-maintenance ways of wealth creation over the long term. All land is not created equally, however, and each individual parcel presents different opportunities than the other; while some land has absolutely no potential for value creation whatsoever.

How can I make money by investing in land?

There are many ways to make money through land investment, all of which require varying degrees of effort, capital, and expertise.

Further to those personal limitations, there are also land-use controls in place for all land within any given municipality which will dictate what “uses” are permitted on the land. These uses will dictate which method of value creation can be pursued.

Probably the most common, for example, would be homeownership. The average single-family dwelling property typically holds much of its value in the land rather than the improvements (buildings).

Over time land will appreciate, which is unlike the structures atop if they are not maintained properly (depreciation).

This allows homeowners to capitalize on the increase in value since the time they purchased the property, particularly if they maintain the house well.

Is land a bad investment?

Any investment can be a bad investment. Small private investors and large corporations alike can severely hinder their financial freedom if proper due diligence and professional advice is not sought.

Land requires a significant amount of money compared to other investments but over the long term it is a safe method of value creation.

Land For Sale Victoria

A land’s value, like any product, is dictated by the fundamentals of economics so its value is in constant flux in terms of “market value.”

One should never just buy a property with the expectation it will be worth more down the line — there must always be an exit strategy in mind. But the land is also a limited resource and like any limited resource, its value increases as we decrease its supply.

Whole markets can have their value wiped out in recessions which is why well-positioned land will always outperform others.

Commercial or mixed-use land typically lends more flexibility in terms of which potential methods of cashflow are achievable and are typically located in more urban areas which makes them more desirable as they are scarcer when compared to something like a residential lot for example.

Is land a better investment than stocks?

It’s all about personal preference, resources, and appetite for risk. Both strategies serve different money-making methods and strategies over the long-term. For example, buying an investment property is about building a portfolio over time that with both increase in value and generate passive income on a monthly basis.

Stock can only provide the former and are significantly more volatile over the short term.

Owning property can be a massive undertaking if undergone by oneself, but stocks require a significant amount of attention on a daily basis if you hold large positions in which the stocks’ value varies significantly.

More money can be made in shorter periods of time by investing in stocks as stocks are much more liquid than real property. A casual stock investor can get lucky with a large position and be able to cash out within weeks or even days.

That’s why the two should never really be compared in a “one or the other” scenario.

Purchasing Land As An Investment

Unlike investing in stocks, you cannot just jump into the real estate market with the land. No matter the scenario, you will need a significant amount of capital, to begin with.

You will require a mortgage (broker), a realtor, and a lawyer at the bare minimum. If you plan on building on the land and holding it as an investment property, then even more capital and expertise will be required along with further and more intensified work with realtors and lawyers.

The typical timeframe for such investments can be 5–10 years at the minimum and in the case of single-family dwellings, 20–30 years. However, as you build your portfolio over time the sale of assets can result in huge lump sums of cash to be reinvested.

Land For Sale Victoria

Now is as good of a time as ever, as it is entirely personal. For example, there are many investors who have withdrawn their holdings traditionally held in stocks and are now seeking investment properties such as apartment buildings or office buildings. If you are prepared to make an investment in real estate property, the first step should be the consultation of a realtor.

An investment of this magnitude should not be taken lightly, therefore it is not advisable to view the investment as attractive simply due to the fact there is currently a global pandemic.

An investor must be diligent and have thoroughly road mapped a strategy for success.

Are you looking for development land for sale in Victoria? We can connect you with a Realtor on Vancouver Island. This real estate agent will provide you with a free consultation. We can also connect you with a real estate lawyer.

Clearway started as a law firm in the past. We then realized there were a lot of people getting bad advice from Realtors and lawyers. We then focused on becoming a “screening service” where we could find the best lawyers and Realtors.

The public doesn’t pay us for our service. If any Realtor or real estate lawyer messes up, we kick them off our platform.

If you want to see what we can do for you, fill out the form on the side of this page. It’s a great service that people enjoy using.

How do you get rich in a recession?

There is no simple answer to getting rich. Investing in property in a recession will not be any sort of getting rich quick scheme. As always, it is about seeing value where others do not and capitalizing on it when you see it.

A recession may allow for the purchase of certain assets at a discount and if the new owner is able to reposition the asset, they may be able to turn the value of the property around quite quickly with some further capital investment.

Victoria BC Land

The best way to sell land will always be through a realtor. Not only will they give you the exposure required to get your property into a multiple offer scenario.

But they are also aware of different bidding processes and positioning strategies that can unlock value in your property, leading to a higher net sale price.

A realtor will also save you a headache in terms of showing property, receiving offers with terms presentable for your lawyer, and conducting purchaser due diligence on the vendor’s behalf.

A realtor is well versed in incorporating and adapting contractual terms to your benefit to ultimately get a deal done.

How do you get rich in real estate?

Getting rich in real estate is about building a portfolio and creating value over time. The simplest answer is to start getting advice early and learn what is achievable given your own personal scenario. Then you can set goals and learn for yourself which methods of value creation are most effective.

How do I buy land with no money?

N/A — need to put money down. If you don’t have money, you can do investing. You might read blogs and books that discuss certain things that are not practical. There is a difference between theory and real life. It’s worth reaching out to us to see what’s possible. But you have to have money.

Land For Sale Victoria

The permitted uses on any particular piece of land are dictated by the parcels Zoning designation. They are within the respective municipality’s zoning Bylaw. Future uses of land may not directly correlate to uses currently practiced and/or permitted on the land.

They also represent the community’s proposed future uses. These are dictated by the Official Community Plan of the municipality in question.

Some zones and land use designations only permit the growth of agriculture. Others can be as comprehensive as laying the groundwork for master-planned communities. Owners can also choose to rezone land to their desired uses. However, this public process and community consultation are critical in order to have your rezoning approved.

Extra Ways To Make Money From Victoria Land

What you can do with your land is also a function of the level of expertise and capital you have at your disposal. For example, a way of making some easy money off unused land is a land lease, which is common on agricultural or industrial land.

Typically land leases are just used for yard storage, so it is a fairly common practice in rural and industrial areas.

Before renting any land to anyone, however, it is essential that you consult both a legal and a real estate professional as giving someone right to your land should not be taken lightly; particularly if you are not intimately acquainted with how your land can be used and by who.

One of the highest-risk ways to make land, which conversely requires the most expertise, is in property development.

Victoria BC Land To Purchase

The best way to buy land or any real estate will be through a realtor. The simplest explanation for that is access and expertise. If you have a good realtor and counsel, realistic pricing expectations, and enough money, you shouldn’t have to do anything more than set your criteria and sign documents.

A realtor will be able to find you a building lot that can accommodate your needs based on the relevant land use documents.

Before building you’ll also need to consult several other professionals. This includes is but not limited to contractors, city staff, and an accountant.

How do you price land?

Land can be priced in several different ways based of the scale and type of property (Zoning and land use). A common and the simplest way is “price per square foot” or per square foot of land. Realtors look at other land that is similar to the parcel in question.

They look at what has sold recently and apply a similar or adjusted price per square foot to the new parcel going up for sale. And then you get the saleable value.

It should be mentioned that this may be different from “listing value” which is why its important to consult a realtor. A similar method would be “price per acre” which is obviously a metric used for larger sites.

Another example of land valuation would be “price per buildable square foot.” This method is typically used for commercial sites that permit large structures. The zone and land use designation will provide a Floor Space Ratio (FSR) which is effectively a multiplier that tells you how much building you can build on your land.

A 2:1 FSR and a 1,000 square foot parcel let you build 2,000 square feet of building on your parcel. Similarly, realtors look at past sales and apply the appropriate adjusted rate to each of the parcels buildable square feet and you get the saleable value.

What makes land more valuable?

There are many things that increase the value of your land: appreciation, up-zoning, development, subdivision. It is all a function of the activity in place or the potential activity to be conducted.

If you are looking for development land for sale in Victoria, contact us.

Are you looking for development land for sale in Victoria? We can connect you with a Realtor on Vancouver Island. This real estate agent will provide you with a free consultation. We can also connect you with a real estate lawyer.

Author: Alistair Vigier is the CEO of ClearWay Law