If you’re looking to build a custom home in the Louisville area, there are a few initial things to consider. First you have to decide what area of town you want to live in, then you must decide how much land you want to have. Figuring out these two details is half the battle. Here are some points to consider:
If you want to buy or build in an existing neighborhood…
- Neighborhoods are abundant in Louisville, but some are better than others if you’re looking for an investment property vs. if you plan on staying there for good.
- Up and coming neighborhoods are cheaper to get into and will yield a bigger return if you decide to sell in the coming years.
- What are the current property values like in the neighborhood? Don’t “overbuild” for what the going rate of the neighborhood is or you might have trouble making a profit when you sell later.
If you’re looking to buy land…
- Many people plan to build in the future and are looking to purchase land in hopes of having it paid off by the time they are ready to build.
- Typically, there are fewer potential buyers for empty lots. That means the land you buy today could be difficult to re-sell in the future if your plans change and you decide not to build after all.
- Higher down payments are required for purchasing land.
- Does the land need to be cleared? If so, consider that added cost.
- Just because the land is empty, doesn’t mean it’s not maintenance free. You’ll need to maintain the land now that it’s yours.
- Before buying land, ask local building and zoning officials about permits that are required to build, as well as restrictions on building types.
If you are thinking about building a custom home in the Louisville area, PL Lyons can help walk you through some of the important considerations listed above. Contact us to request a consultation.
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