Malibu Property:Purchasing land in Malibu, California
PurchasingĀ Malibu property can be a solid investment, as well as an opportunity to build your idyllic home There are some important aspects, however, to consider before buying land in and around Malibu. Here are a few tips to keep in mind.
Before buying land in Malibu, there are some important aspects to consider. Here are aĀ few tips to help you along the purchasing process.
The Price of BuyingĀ PropertyĀ in Malibu
Malibu is home to many expensive lots of property. Prices increase exponentially when building a home; especially when you fact in the costs forĀ foundations, walls and beams.Ā Due to updated building codes and regulations, properties with prior homes cannot be built on today .
An option when buying land in Malibu is to purchase a parcel that already has a building permit attached to it. These lotsĀ tend to start at around $750,000.Ā PropertiesĀ with building permits attachedĀ have anĀ easier time obtaining a construction loan during the time of the purchase.
Permits Required to Build in Malibu
Purchasing your property in Malibu is the first step of the process. AĀ Building Plan CheckĀ is also required.
On Raw, undeveloped Malibu property,Ā this process can take up toĀ 18 to 24 months. You will also need to have your architectural plans, feasibility studies, EIR, geology and archaeology reports prepared, which could cost upwards of $200,000.
Getting Financing to BuyĀ PropertyĀ in Malibu
There are not too many lenders who offer financing for vacant land. If they do, oftentimes they will require a 50 percent down payment on the property. Lenders may also require geotechnical studies and septic systems to be installed. This can make buying Malibu property a challenge because there are few parcels that have septic systems installed.
However, there are a couple of options available to buyers. First, and perhaps the easiest, is to purchase your land with cash. This will give you the freedom to focus on obtaining the permits and designing the plans for your home.
Secondly,Ā buy the property with seller financing. You will be making regular, periodic payments with interest to the sellerĀ for several years.
Construction loans are the third and final option.Ā Ā This isĀ especially appealing if you are buyingĀ Malibu property that already has an active building permit. As long as you are ready to immediately start construction after the purchase, this can be a good option.