Sell your land in five steps

To generate the capital you need, do you want to give up a piece of land or part of your estate?

Study the feasibility of the land sale project

The first step is to go to the town hall to consult the local urban plan (PLU) or the land use plan (POS), according to the municipalities. "  This document establishes the planning rules to follow and allows you to study the feasibility of your project,  " says Patrice Petit, chairman of the transaction commit to the National Real Estate Federation (Fnaim).

You will find the answers to your queries: are you entitled to surrender part of your land? Is the latter constructible? What is the minimum area needed to build a house?

If the project is feasible, take advantage of it to inform you about easements (water, gas and electricity pipes, right of way ...) and the possibility of connecting the land to the sewer and the sewer. Drinking water system, if it is not yet the case.

Solicit an expert surveyor

If you sell a portion of land, the use of an expert surveyor is essential. He intervenes first to survey the surface to detach, taking into account your wishes and the PLU. "  Then its role is to limit the perimeter of the new land, to guarantee the buyer its contours and therefore its surface  ", adds Michel Ducroux, an expert surveyor in Aix-en-Provence.

If the land is surrounded by secluded property, the surveyor meets the neighbors to study their title deeds and the plans annexed to their bill of sale, and collect their remarks (we speak of "  contradictory demarcation "). He then defines the boundary separating the two properties and has the boundary report signed by each neighbor. This operation is concretized in the field by the laying of terminals.

The surveyor then files a "preliminary declaration of division" in the town hall, authorizing the creation of one or two lots to be built - from three lots, a development permit is required, accompanied by a plan listed in three dimensions (topographical plan). The instruction lasts one month. After approval of the town hall, the seller must post the statement on the site for two months.

If you sell independent land, demarcation is not mandatory, but advisable. Do not hesitate to check on the website of the order of land surveyors if your land has already been limited. Many sellers wrongly think that consulting the cadastral register is enough. But it is not authoritative regarding land delimitation, except in Alsace-Lorraine.

In general, the cost of the separation is the responsibility of the seller. It fluctuates between € 2,000 and € 7,000 depending on the surface of the land for sale, the number of neighboring properties, and the land surveyor whose fees are free. All the more reason to ask for several quotes before requesting his intervention.

Request an estimate of the land for sale

Once the area is bounded, it is necessary to determine its value. This work may be entrusted to a land expert, a real estate agent or a notary. "  We first study the characteristics of the land (area, access to public roads, presence of drinking water ...) and those of its environment (slope of the land, nature of the subsoil, view, exposure ...), then we evaluate it by comparison with other properties,  "explains Bruno Crest, land and agricultural expert in Aix-en-Provence.

According to the municipalities, the price is fixed per square meter or depending on the value of the lot, taking into account, of course, the market and the negotiation with the buyer.

Propose the property for sale

As with any real estate property, you can make the deal, either from individual to individual, by using Internet sites and specialized advertising newspapers, or by entrusting the transaction to one or more real estate agencies.

"  Do not hesitate to warn a builder of detached houses that land is for sale,  " advises Pierre Bazaille, president of the Notary Institute of Real Estate. Whatever the method of marketing chosen, it is necessary to build a sales file, bringing together the title of ownership, the report of demarcation ... and the technical diagnoses (state of natural and technological risks, termites).

Conclude the transaction

The agreement is concretized first by the signing of a preliminary contract of sale (unilateral promise or compromise of purchase). This document lays down the conditions precedent that, if they do not come true, will cancel the pre-contract: issuance of the building permit, the purge of any recourse from third parties (deadline after which a neighbor can no longer request the cancellation of the license to build) ... It also establishes the maximum height of the future house, the type of hedge to separate the two properties, the one that will have to pay the new fence ...

"  Between the signing of the preliminary contract and that of the act of sale before a notary, it takes more than a semester, the time that the purchaser gets his building permit and the period of the appeal of third parties be eliminated,  "warns Pierre Bazaille. Finally, the signing of the notarial deed notes the transfer of ownership and triggers the payment of the amount of the transaction to the seller within about eight days.

"Valuing your land to sell it better. "

The advice of the expert Bruno Crest, land and agricultural expert, member of the Confederation of Land Experts

" Before giving up your area, it is advisable to clean it so that the future buyer can easily browse it. The realization of works sometimes makes it possible to give to the good an additional asset, with a relatively small expense: to bring back embankment on the dirt road to make it more accessible, for example.

Finally, in the case of a direct sale - without the intermediary of a real estate agent - the seller must be able to inform the candidates to purchase on all points that could pose a problem: urban planning rules ( building surface ...), easements concerning the water, gas and electricity pipes, possibilities to connect to the mains drainage and the drinking water network ... Answering the questions can have, also, a Positive influence on the selling price! "

Five keys to success for a real estate investment

We discussed in the previous article the popularity of real estate in recent years. This time, we consider how to place your balls if we want to succeed in our real estate investment. And saying success, I mean: how to make sure it's as close to a cash pass as possible.

When we talk about real estate investing, we can talk about many things. We can talk about the purchase of a building for rental, generating financial flows that we hope positive every month.

We can also only refer to the purchase of a building under its market value, to retype and reevaluate to use its capital gain to finance the purchase of the next.

It can also be purely land speculation.

It can also be a mix and match of all that.

When we bought the house last January, it was clear in our head that it was not a flip. We wanted (and still want) to live there for the long term, but we wanted a home with significant potential for value.

Why? Then the area is to money the resultant salary structure with the new worth of the firm.

Even if we made some mistakes in the realization of the project, we are still on the track. Yes, maybe we should have paid less for it (I think we paid $ 10,000 too much), but between the time we made the offer and the time we bought, two commercial projects are open near the house, which has increased its value.

Conditions of success for a successful real estate investment:

1-Know yourself / be well surrounded

1-Know yourself / be well surrounded

Here is no shame in not knowing everything, but you have to recognize it and know how to surround yourself well. I would never buy the triplex without Nico and even less the house and vice versa. I am the one who follows the market, prices, trends, regulations. Call me Ms. Admin (or not, it's atrocious as a name!) Him; it's the planning of the work, the realization, and the maintenance. We are lucky to have an entourage who knows how to give us good advice.

If in doubt, do not hesitate to call a professional.

And for heaven's sake, have it inspected !!

2-Analyze the targeted market

You need to know your area and trends at your fingertips. Which customers will rent/buy the unit you want to buy? What are they looking for? What are the non-negotiable elements? What is their budget?

The neighborhood also has a significant impact. Some communities are more valuable than others, making resale / renting much easier. We can almost change everything in a building, but the area, that, we are taken with. So be sure of the location! Stay on the lookout for home development projects, school construction, commercial projects that would revitalize a neighborhood puppy.

Our triplex was bought in the ghetto, and it's now a growing neighborhood, making rental easier. We are made in.

3-Do does not buy too much

Some renovations, such as redoing electricity, plumbing, changing the furnace, etc., are not paid improvements regarding market value. You will need to consider these aspects in the calculation of the price offered for the building. If you spend too much on departure, it will be difficult to have a positive return on investment.

4-Well, plan his budget renovations, plus contingency.

Bet on the elements that bring the most "wow for the dollar" (free translation of bang for your buck ). In the newly renovated triplex housing, we have relied on a heated ceramic floor, new "high-end" floating floors and new cabinets in the bathroom. From our research, this was what tenants were looking for most as items in a dwelling.

The floors cost $ 5,000 and the cabinets $ 500. The ceramic floor has a lifespan of 20 years, so we will be able to cushion it for a long time, and the offices have seriously refreshed the look of the bathroom. Result? We rented the apartment in 1 visit.

It is also important to consider whether you will be able to finance the renovations. Will you have to pay for it from your pocket? Since it can extremely change a plan!

What are the deadlines? Will you have the cash to keep the project afloat if renovations were to drag on?

All of the questions you should take the time to answer with a drink, with a relaxed head. Not on the corner of the counter by making an offer to buy.

Just saying '

5-Be prepared for moments of stress

Oh. That. Yes.

Need more?

Every project, as well planned as it is, encounters a moment of stress.

The City is slow to approve the project.

The chosen contractor must postpone the site.

The chosen color is obsolete.

The subfloor is rotten and needs to be reformed.

If around people think that real land investing is less taxing than spending ones under "on the standard marketplace" (which by the way, does not unkind much they will be bitterly disappointed. Real estate is not stressed free! Not only will you be confronted with it, but you will be at the heart of decisions.

WHAT IS THE BEST TIME TO BUY AN INCOME BUILDING?

The best time to buy was 20 years ago ... The second best time is now!

"The first step is continuously the most problematic."

I will always remember my landlord when I rented. The gentleman was 76 years old, and he was still busy with his beak and nail blocks. At least he collected rents; he destroyed the nest of wasps and anthills that littered his buildings. One day during small work done in our bathroom I told him that I too wanted to buy income properties. His eyes have changed, I felt all the passion of this man come back at once! He told me:

"Buy, buy ... buy my man, that's the best thing you can do. I'll let you know a deal ... you know, I did not even finish high school and look at me today, my buildings are worth millions. I'm taking care of it is a passion, but I could have sold them all and spent the rest of my life on an island in the South.

We were far from the owner who wants to keep his good tenants. My owner was right: the best time to buy was now. A year later, I bought my first quadruplex.

Delaying the purchase is never a good idea

Do you think that house prices will go down? Or Increase? Whether interest rates will decrease or increase? Regardless of your beliefs, the reality is that real estate remains at all times a safe and profitable investment.

Just wait in case ...

It is also possible that the market remains stable for the next 5 to 10 years. Staying on the hobbies and waiting to see if you were right or wrong makes no sense. Inaction does not create wealth, people who trust and rush get rich. In the rental real estate, your tenants pay the interest in the bank, the capital, the taxes and the taxes of the building. For a savvy investor, his block pays for itself. If you live in your building, then your tenants will spend a good portion of your mortgage.

The more time passes, and the more your equity on your property will increase. You can use this equity to refinance your building and buy another building

A real estate broker is essential for the purchase of a first plex.

The rental real estate is more complicated than buying a single-family home. Whether you are looking for a Duplex, Triplex Quadruplex, Fiveplex or more than six units, in multi-unit there are many more variables to evaluate:

1. What is the rental clientele of the sector?

2. Are current tenants good tenants?

3. What is the state of the rental units?

4. Can rental income be increased?

5. Can I take rent to live there?

6. How does housing management work?

7. What are my obligations as an owner?

8. What are the tenants' obligations?

This list of questions is long, and that is precisely why a real estate broker becomes an essential partner in your success.

A real estate broker specialized in rental property and specialist in your sector is one of the keys to your success. As you have several rental units to visit, two pairs of eyes are better than one to find all the defects and potential problems of the building. So, you usually should not have a significant surprise when inspecting your building.

In Quebec, the rental market is getting older

Buying in Quebec City, Montreal or Trois-Rivières requires a good understanding of local market realities, sociological trends, demographics, the composition of building structures, and so on. For example, the buildings constructed in Hochelaga do not have the same structure as those made more recently with concrete foundations in Rosemont.

An excellent real estate broker knows the structural reality of the buildings in your area and advises you before even bringing in your inspector

Conclusion

Buying a rental property is an active investment. It takes about 40 hours of work a year and brings you a lot more than a week in the long run, regardless of your salary. Remember that the line is thin between successful people and those who trample. The significant thing is to take action now. So, you too in 35 years will have a fire in your eyes as my former owner. Who knows? You may be a millionaire on an island in the sun!

Thanks for reading me,