To start building a house, you must first work a lot looking for the right plot. It should meet your requirements as to the location of the terrain, neighborhood, size as well as financial possibilities.
The key issue is also the type and purpose of the plot and whether it is possible to credit for its purchase. What is the process of land selection and purchase, as well as applying for external financing?
What plot should you choose?
Before choosing a plot, you should determine if you will need additional funding to buy it. The status of the land will determine whether you can credit it, and whether and what type of development is possible on it.
If you want to build a house, you should look for land for housing purposes. According to the provisions of the Construction Law, land for the construction of a residential building is considered as land on which, according to the law in force at the time of purchase, a residential property can be built.
The easiest, but also the most expensive solution is to buy a construction plot . What do we call such soil?
In the case of a construction plot, you will not have to go through any additional formalities, as banks honor this type of land when applying for a mortgage. In the local land use plan it will be marked with the symbols:
- MN – single-family housing development areas,
- MW – multi-family residential development areas,
- U – service development areas.
You will also get external financing by buying a housing estate .
For this type of plot, financing may be a little harder than for a construction plot. Not all banks offer loans for such land. In addition, additional forms of credit collateral are often required.
Can I buy an agricultural plot on credit?
Agricultural plots – land that is or can be used for farming – are less expensive than construction. That is why some people wonder if it is possible to buy such land and build a house on it.
Of course this is possible, but you need to carefully check what the purpose of the land and its class are. You will verify this in your local spatial development plan, as well as in an extract and an excerpt from the land register .
Who can buy an agricultural plot?
An important aspect when choosing an agricultural plot is also its size, and whether you are a farmer or not. On June 26, 2019, the amendment to the Act on shaping the agricultural system entered into force . Since then, if you are not a farmer, you can purchase an arable plot of land with a maximum area of 1 hectare.
The new regulations say that land larger than a hectare can be sold to a non-farmer only if there is no farmer who will be interested in purchasing the land and the director of the National Agricultural Support Center agrees in the form of an administrative decision. Banks are still cautious about financing such plots, so you may have trouble getting a loan for this type of property.