Narrow down the neighborhood you want to live in and keep in mind the cost of land and construction in the area.
What Do you Want to Build?Figure out the size of home you want: How many beds, baths, rooms would you like? Talk to an architect to help understand the size of the lot you will need to accomplish your home goals.
Understand Zoning and the key factors: Setbacks, Height Restrictions, CoverageSetbacks - Minimum distances required from the front, side and back property lines.
Height Restrictions - The total height allowance and number of levels allowed for a building, measured from the street elevation
Coverage - The percentage of the total area you are allowed to cover with buildings.
Be Aware Of TreesLook out for trees and what that means for where you can construct a new home. Most large trees are protected, so you aren’t able to build below the canopy of the tree.
Think Positioning Of Your HouseDo you want a south or north lot? East or West? Sunrise or Sunset? Most prefer a home on the south side of the street so the main floor and back primary bedroom have full sun.
Make sure there's enough tablelandFlat land is ideal for structures, as building on a slope is challenging, and often not permitted.
Heritage BuildingsIf the lot has a building on it, confirm whether or not it is a heritage building and quantify how much it would cost to demolish or remove it.
Establish Your BudgetThe cost of the land, demolition of an existing building, the cost of new construction are the main components. But soft costs add up as well, such as lending fees/interest, rental replacement home, utility fees and development charges at the township/City level.
Be wary of Construction LoansYou may also need to apply for a construction loan. Construction loans are short term, (typically) high interest loans. They tend to be more difficult to obtain and qualify for than mortgages, as more information is required. Also be careful not to rely on the paying contractors from the loans. Construction loan payments are often staged based on engineer reports of progress. Contractors want to be paid when their work is completed, not when the engineer finally comes to confirm and write a progress report.
Have a Building Contractor In MindIf you are going to purchase land, you should have one or two contractors ready to provide you ballpark estimates and timelines for building according to lots you have selected.
For free information or if have any real estate questions, or even considering selling your home, call us at 416-222-1212 or email us at email@example.com. We would love to help you.