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wants to use that land for something else, they’ll have to make an appeal to get rezoned and that’s often a lengthy
process.”

For more information on zoning and its associated costs, contact your local municipality or ask your REALTOR® for
their expertise.
2. Location, location, location
Where you build is just as important as how you build. Don’t just consider the lot itself—think about what’s nearby,
too.

Are there nearby bodies of water that could present a flood risk?
Who, or what else is next door? Are they residential, agricultural, or industrial?

How far away are grocery stores, schools, fire stations and hospitals (the latter two also important for insurance
purposes)?

Are there any planned future developments nearby?
Has the property been surveyed and are there any restricted or poor building areas (due to flooding risk, protected
vegetation/wildlife, easements or otherwise)?

How will you be accessing services like water, sewage, and
power?

3. How patient are you?
Buying land and building a home can be a lengthy process,
and it certainly isn’t for the faint of heart.
Timelines for building can be affected by a number of different
factors, including weather conditions, the composition of the
land (do you have a lot of clearing to do? Will you need to
bring in soil or other land preparation?), your budget, building
supplies, and labour.

As a general rule of thumb, Vandendool suggests anyone
looking to build their own home should gather their patience
and plan to wait a minimum of one year before their home is
ready to be moved into.

How can you finance land?
The mortgage process for buying vacant land is a little different than what you may be familiar with. While pre-built
homes are typically financed through conventional mortgages, there are several different options for financing land.
Land mortgages and construction mortgages work similarly to a regular mortgage, but typically they have higher
interest rates and down payments because they require your lender to take on more risk.

A land mortgage finances the land itself, while a construction mortgage finances both the land and the construction
of the home. Construction mortgages will have several draws of financing to cover each stage of building.

If you already own a home and are looking to build a second home or a vacation home, it may be worth considering
tapping into the equity you already have. The most popular ways to do this are by refinancing your mortgage or a
Home Equity Line of Credit (HELOC). ■

8 | REAL ESTATE NOW | denise@BCislandhomes.ca