Are you planning on buying an acreage of land in Ontario to build your family a house for commercial purposes or investment? Just like buying land in other areas is a commitment in Ontario is not an exception, and there are some things you should be aware of before making a decision you will regret later. The land you want to purchase will determine how you want to use it. Below are details about buying large acreage land for sale in Ontario.
Types of land in Ontario
- Raw land
Raw land is privately owned land that has not been developed before and is bare, and it might lack amenities like electricity and water access. Raw acreage land for sale tends to have a lower price of purchase but a down payment of half the price. This type of land is suitable for investment.
- Vacant land
This is also privately owned land but with access or partially serviced to amenities like water, electricity, and road. The price is generally high compared to raw land due to the aces to amenities and has a 35% down payment. This land best serves as commercial land or a place to build a home.
- Crown land
A big piece of Northern Ontario is crown land which is public land owned by the provincial government, while southern Ontario is privately owned. Crown land can be rented or sold under sustained conditions and restrictions to ensure sustainable growth. The cost varies depending on the market value.
What to look out for when buying land in Ontario
- Soil test. A soil test is essential when your land is not serviced by the provincial municipality, as you may have to construct a septic tank or dig a well.
- Zoning. Zoning is a governmental strategy aiming to control how certain parts of the land are used. Before purchasing, you should ensure that the land you want to purchase is zoned for the purposes you want to use it for.
- Access. If you are not purchasing for investment, it is best to consider the land with access to social amenities to avoid extra costs.
- Taxes. After purchasing land in Ontario, you will have to pay Ontario land transfer tax and property taxes if you haven't built on the ground.
Financing the land purchase
Land loans
This private financing from private lenders or mortgage lenders depends on the type of land you want to purchase. Land loans may not finance the land purchase with a high down payment or higher interest rates.
Personal loans
This is paying using a mortgage refinance your current home or personal cash. You can use your home equity line of credit if you own a home to borrow money for the purchase.
Seller financing
This involves the land seller acting as your lender after giving a first down payment and paying the rest of the money in installments.
Land purchasing be done after verifying that your seller is a valid seller to avoid buying an already sold or not-for-sale land and after a survey in the ministry of lands.
