Whether you’re buying land to build a house, develop for commercial use, or simply as an investment, there’s a lot you’ll want to know before you commit to purchase.
As one of Ontario’s top commercial and industrial real estate teams, we know everything there is to know about these multifaceted properties.
In this blog post, we’re sharing our best tips on how to buy land in Ontario.
Searching for commercial or industrial real estate in Ontario? Explore my recent listings.
Buying Land: The Basics
Let’s start with the basics. If you’ve never purchased land before (at least not empty, vacant land), you’re probably not familiar with the unique elements of the process, and that’s okay.
Buying land may seem simple, but it’s just as complex (if not more so) than buying a house. Even if there’s no structure or infrastructure on the property, there are still major financial and legal elements at play. As a buyer, you’ll want to know what you’re in for before you head to the market.
Do You Need a Real Estate Agent to Buy Land?
Yes, you should always work with a professional real estate agent if you plan to buy land in Ontario. However, you don’t want just any Realtor. You’ll need to hire someone who actually specializes in commercial and industrial real estate.
A top commercial real estate agent can connect you with properties that match your objectives. They’ll also ensure you understand the essential variables of your purchase, including things like financing, zoning, and future development. More on this later.
Mortgaging Vacant Land
Financially speaking, land is a significant purchase. That’s why most buyers and investors choose to get a mortgage. That being said, there are a few special considerations to be aware of if you decide to get a loan.
Importantly, most mortgages for vacant land require a higher down payment compared to residential real estate. On top of that, you’ll also probably face higher interest rates than the mortgage you have on your home. This is because lenders generally view land purchases as somewhat risky.
Every bank has its own offerings when it comes to land mortgages, so you’ll want to shop around before you sign on the dotted line. Your commercial Realtor can even make informed recommendations on local lenders to help you decide which is best for you.
Searching for more commercial real estate insights? Explore these related readings.
- What to Know Before You Buy Commercial Property
- Why You Should Choose Naccarato Group to Lease Your Industrial Property
- How We Approach Commercial Leasing
Vacant Land vs Raw Land
Not all for-sale land in Ontario is the same, and as a buyer, you’ll need to confirm what type of land you’re looking for.
From a real estate perspective, there are two main categories of land to know of: Vacant land and raw land.
Vacant land generally refers to properties that have some degree of infrastructure and are already serviced by certain utilities such as electricity, power, and water.
Raw land properties are similar to vacant land, except they are not currently served by utilities and have limited infrastructure (if any). In fact, some raw land properties in Ontario may not have road access.
Understanding Zoning
Regardless of what you plan to use your land for, you’ll need to make sure that zoning allows for it. Here’s where that gets a little complicated: In Ontario, zoning bylaws are set by individual municipalities. What’s permitted on one property may be disallowed on something similar only a few kilometres down the road.
With that in mind, you’ll really need to do your due diligence as you search for the ideal property. Once again, this is where a commercial or industrial real estate agent’s expertise is very important.
As an expert in these types of properties and the regulatory nuances that apply to them, your Realtor will ensure that you find the right piece of land based on your personal objectives. They’ll also make sure that you’re educated on any other bylaws, formalities, or red tape that you should know about before or after your purchase.
Purchase Your Perfect Property
Looking to buy land in Ontario? Work with commercial and industrial real estate experts Naccarato Group. Whatever you’re looking to accomplish, we have the skills and strategies to help you get there. Even after the deal is done, we’re always available for follow-up questions, market insights, or commercial real estate advice.
Need an expert commercial Realtor? Get in touch at christian@naccaratogroup.ca or call (647) 492-6508.
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