Considering purchasing vacant lot next door for a shop build...

[Shoester]

Good day all, after lots and lots of dreaming and trolling around the site, I've decided it's time to seek some specific knowledge from the huge brain that is garagejournal.com.

I purchased my first home in June of last year in an un-finished subdivision, and adjacent to my lot is an empty wooded lot of roughly the same size (~18,500 SF). I talked to the owner of the lot, and he gave an initial sales price of $29,000 for it, which seems slightly below the other lots in the area.

Is it a poor or wise investment to purchase an adjacent lot? Is there any chance that I could recoup the cost if I ever decide to sell?

The lot is tree'd, so what kind of problems am I going to run into when clearing half the lot (I'll leave the other half tree'd so the neighbor on the other side doesn't forfeit too much privacy).

Any general tips on how to go about this? I plan on building a 28x32x10 for personal projects and such.

Arial imagery...my house is on the corner and the empty lot is to the north, in between my house and my neighbors.

 

[paranoid56]

for 30k? yea i would buy it in a heartbeat. you would need to check with local codes if you could build just a shop, but hell, fence it off and you have one hell of a nice yard. not to mention better resale value.

 

[Higgins]

Better check with your local building and zoning office to understand what you can build on that lot before you purchase it! Also, look at height restrictions........

Some municipalities will not allow the building of a shop on a piece of property by itself. May have to combine the two lots!

 

[Shoester]

for 30k? yea i would buy it in a heartbeat. you would need to check with local codes if you could build just a shop, but hell, fence it off and you have one hell of a nice yard. not to mention better resale value.

Better check with your local building and zoning office to understand what you can build on that lot before you purchase it! Also, look at height restrictions........

Some municipalities will not allow the building of a shop on a piece of property by itself. May have to combine the two lots!

Good points. The neighborhood does have an HOA, but I don't see anything in the restrictions about having to build a home. I sent an e-mail to the president to confirm. Outbuildings must conform to the neighborhood design standards and must match the house. Limited to 10' sidewalls.

Interesting point about combining the two lots...I wonder what the tax implications of this are?

 

[HoosierMark]

Check with your subdivison covenants (assuming you have them)as to what you can and cannot build. You may not be able to use the lot for anything but a single family dwelling. Also check on taxes, assessments etc on the lot, they can eat up a lot of money. You need to decide, do you want an investment or do you want to enrich the quality of your life with this purchase. If you want a better investment, a duplex might make more sense. If you want to enjoy your investment, the lot might be perfect. No one on this site can tell you if it is a good deal now without a lot more facts and even then you probably need an appraisal unless you know the market well. Selling in the future and getting your money back depends on the economy and the competition from other lots in the area. If you are in competition trying to sell a lot with a developer, the developer will probably sell his lots quicker. They often offer financing or a package deal with utility connections or with constructing a house. But, I have bought lots of land over the years and if I had the oppurtunity, I would buy the lot if it was at market price or less. I want to control my surroundings and this would be a good way to do it. You can always sell but sometimes it may take a while to find a buyer.

 

[DekeT]

Even without the HOA rules you will be subject to the underlying zoning. Subdivisions are most often strictly a residential use. And it is probably the case that you would need to combine the lots to put up an accessory building. The size of accessory buildings are often limited by lot size. A 32x28 may well exceed the limits even for a double lot. You have a lot of research to do.

 

[QwikKotaTx]

Depending on what part of the country you are in that is a good price for a near 1/2 acre lot. Just go to the city's MLS site or zillow and search for comparable property. Seems like you could get your money back. There is that old saying, they aren't making any more land.

 

[SteveCh]

If the bldg codes, zoning, etc., allow you build the shop or garage or whatever it turns out to be, I personally would not be worrying about resale recovery of my investment. But that's me, I find life to be worth doing what I want, within some reason, and not lying in bed at night wondering if I can recoup my money at a later date. In other words, heck yes, that seems to be a great opportunity. And though I don't know the lot prices and etc. on comparable properties, that price simply sounds quite reasonable. Get the place, build the shop, and then enjoy the heck out it, smiling every time you walk over to it to do something or just putter around.

 

[BRIANBB]

If there is an HOA there is no chance of putting just a shop/garage. The lots primary building will need to be residential. I doubt you will be able to combine the lots into a single platted land parcel.
The there sewer or septics?

 

[scottm]

To me it would be worth $30k just to make sure no one ever builds on it, but that's why I don't live in a subdivision. In addition to the other points people have made, see if you would have to pay HOA fees on both properties.

 

[CNGsaves]

Contiguous lots are generally allowed to put just garage on the second lot - - - ie you really just have one BIG lot. Thus, one house and one detached garage.

Thus, more checking needed with local zoning and HOA.

 

[Streetbu]

Better check with your local building and zoning office to understand what you can build on that lot before you purchase it! Also, look at height restrictions........

Some municipalities will not allow the building of a shop on a piece of property by itself. May have to combine the two lots!

Ditto, BUT if you're good to go, try to keep the lots separate. Taxes will be cheaper if they see just a "barn" on plot of land, than if they see a house on a double lot with a huge detached garage....plus if you sell the house the garage is on a separate piece of property and you could keep it if you wanted to.

 

[Shoester]

Thanks for all the very good points guys/gals. I will be checking in-depth with my HOA president as well as local codes guy to see if I will be violating anything, and also to see what my options are for combining lots or if it's better to keep separate.

I'm going to walk through the lot in detail this weekend (I leave for work before the sun is up and get home by the time its gone down ) is there anything in particular I should be looking for in an empty lot that may spell trouble?

 

[rsanter]

If you do this I would try to keep the lots seperate if you can, but they may make you combine them as many neighborhoods require the building of a house and not just a shop.

The other issue is that a shop on a piece of land in a heighborhood is not worth that much and may be hard to sell later unless it's to a neighbor. It may also be harder for someone to get a loan for it.
To counteract this you should place the shop on the land so that a house can still be built there, so I would put it back in the corner as much as possible.

Another option is to talk to your neighbor and perhaps see about splitting the lot and adding each half to each of your properties. You will both have big lots and you will get the shop you want

Bob

 

[EdT]

These things can get dicey especially when a HOA is involved. I would start with the planning/zoning board of the community to find out what you are allowed exclusive of the whims of the HOA. If that is OK then you should confirm with the HOA that they will allow you to build something you want on it. I would attempt to get the points agreed upon in writing and make sure that the person doing the approving is actually empowered to do so. If you get a written approval from someone who is not able to grant an approval, you've got nothing. You certainly don't want to get into some of the horror stories associated with both planning/zoning and, especially, HOAs. You don't want to have to watch the HOA tear down your building at your expense because all you got was a verbal OK from some one who "thought that'd be OK". Might be worth getting a lawyer to make sure it's all air tight.

 

[theoldwizard1]

Better check with your local building and zoning office to understand what you can build on that lot before you purchase it! Also, look at height restrictions........

Some municipalities will not allow the building of a shop on a piece of property by itself. May have to combine the two lots!

HIGHLY LIKELY !

Basically this is paperwork, but the city and/or county are going to charge you. Even then, you need to check the zoning ordinances on "outbuildings". Some place are very restrictive. For example, they may only allow an outbuilding to be only a certain percentage of the primary residence first floor square footage.

 

[Mazdaspeed]

For $29,000 I would buy it just to have the green space next to my house, regardless of if I could build on it or not. I guess taxes might cost you a bit, but I'd still find that worth while.

 

[pop pop]

Probably worth the price, BUT, have a local real estate attorney answer your question. He/She should be well versed in the HOA docs and the local rules. DON'T trust a verbal discussion with the HOA officer or Board. They're likely not in the know, not just not trustworthy. They'll know the neighborhood sentiment about the garage idea though.

 

[larry4406]

Not sure if your garage would have water and sewer or if you are on municipal service, but you might have to pay tap fees for same. These can quickly be tens of thousands and must be paid before a building permit will be issued.

One subdivision I am building in my company had to pay close to $35k in tap fees for sewer and water.

 

[Zeke]

I'd build a 2nd home with the 'garage' detached. Rent the home and use the garage. Again, check the rules. Your tenants might be violating a rule if they continually park outside.

 

[1jjpop]

In our town if you own the lot next door to where you live ,they will let you build a garage on it. If is a lot away from where you live they won't give you a permit to build on it. They want houses built on empty lots. I drove by a house one day they were tearing down, it had a double garage on it , on the back of the lot . Asked the owner what he was going to do with lot & garage . He said sell it, I bought it [that is my shop now] Also my garden spot & place to park 2 trailers on. A good spot to hang out at.

 

[justanengineer]

I purchased my first home in June of last year in an un-finished subdivision

Wait 3-5 years before buying/building anything. Your neighborhood is very likely to change a helluva lot as more houses are built, and you dont want to be tied to a huge investment in case it changes for the worse. Its your first house, odds are also really good that you will move before too long. You might not think so, very few do, but its reality.

 

[ovscrider]

as said by several might be hard to get permit just to build the garage, if allowed and you plan on keeping max value make sure the garage is designed to integrate into a house for the next owner even if it's not the perfect layout to you

 

[Highlux]

Land is usually never a bad investment. Making your current lot bigger is a great investment. I say go for it. Play the game though...get it as cheap as you can.

 

[NHBandit]

If the bldg codes, zoning, etc., allow you build the shop or garage or whatever it turns out to be, I personally would not be worrying about resale recovery of my investment. But that's me, I find life to be worth doing what I want, within some reason, and not lying in bed at night wondering if I can recoup my money at a later date. In other words, heck yes, that seems to be a great opportunity. And though I don't know the lot prices and etc. on comparable properties, that price simply sounds quite reasonable. Get the place, build the shop, and then enjoy the heck out it, smiling every time you walk over to it to do something or just putter around.

^^^ This is how I look at things as well. Worrying about investments is of course, the responsible thing to do, but.. you're talking about your home and the joy of having your own space to work on whatever you feel like working on, not something boring like which stock to invest in. If you put a value on how much enjoyment and relaxation you will get from it instead of how many dollars it will bring you at some later date you'll be much happier. If the neighbors are against it ask them if they would prefer for you to start a pig farm on that property....

 

[Bib Overalls]

I bought the lot next to me about ten years ago to keep my neighbors at bay. By leaving it empty it is taxed as undeveloped. It has appreciated about what we have paid in taxes. Even so, I am very pleased to have a buffer and consider it money well spent.

 

[flippin]

To counteract this you should place the shop on the land so that a house can still be built there, so I would put it back in the corner as much as possible.

Exactly what I was thinking. This will provide you with the space for your shop and current enjoyment without affecting your investment value.

 

[steel billet]

Another option is your have a corner lot. You could put that Money in a shop on the lot you have now.

 

[carcajou]

If you can build on it, and you can afford it hell yes buy it. You may never get another chance. You can always resell down the road if you want to.

 

[Papas63]

It's a great price, if you can deal and abide by HOA rules & regulations.

I would never buy a home in a development which had an HOA. Too many restrictions, and wouldn't want anyone telling me how to live on my own property.

 

[Delta74]

I would buy it,keep it separate, build a nice looking HOUSE on it with an attached 3 car, if I could, 2 car on one side, 1 car on the other, the house part would be a empty shell, no second floor that's where the lifts go, the front would look like a house matching the area, keep the blinds closed, have its own power and water/sewer hook ups, and the average joe in the area would have no clue its actually a monster garage. of course I would not hide it from the HOA, just show them what you want to do, get it approved in writing, and build on.

now for the negatives, they may not approve the idea, costs to make a fake house front may be higher then you want, but really what are they doing?? adding in a bay window to a wall??? the front door would be a man door to the shop, it could eat up inside bench space, the city may not approve such a design, and due to the height, may need a steel structure to support the height and span for the house part, also would need to drive into the garage and pull a hard right or left turn to get lined up for the lifts, good thing you have a deep house. working in it would be more of a pain due to the layout and 18 point turns inside, and finally I could be talking outa my *** here.

regardless, given the option, for 30K, so long as there is no requirement to start a build on the lot, I would buy it as a buffer before my neighbor does. and sort out the keep separate, join it to exsisting lot, remember if the area goes nuts you could sell the second lot for a profit, but once you join them, it can be a pain to split them down the road, also new owners may not want both lots so 2 sales, or one huge ***, half empty lot they need to maintain if its joined.

 

[Shoester]

Another option is your have a corner lot. You could put that Money in a shop on the lot you have now.

This was my initial thought. I had planned to build the garage on the NE corner where all that empty space is, with about 10' or so extending into the back yard. There is a slight slope over there though, which is my only concern.

 

[BD1]

You have enough replies for sure. BUY IT, you could always build your dream shop and new house and then sell yours or rent it out.
Do you have the cash ? Sometimes loans on vacant land are really hard to get. You could get a home equity loan too.
If you really plan on staying there , like all said , I'd buy it so no one else would build on it.
That HOA could really ****, whatever you find out , get it in writing .

 

[NUTTSGT]

First of all, welcomt to GJ.

Second, since you live in an HOA, you'll find the majority of the members here dislike them and have an opinion about them. . . . just so you are aware of it.



If it's a good deal, you can afford it and don't want another house right behind you, then buy it by all means. If you can get past the zoning, local codes and HOA rules to put up a garage on that property, then do it.

You may have to put both parcels together to get the approval to build a detached garage on that lot though, keep that in mind. I'd probably keep the thoughts of purchasing that lot quiet to keep your neighbors from buying it out from underneath you.

 

[Shoester]

Thanks all for the wealth of knowledge I knew you would provide.

Sounds to me like I would be an idiot not to purchase the lot. I can't afford to spend $29k out of pocket, but I will contact the local bank that does land/lot loans to see what they can do for me.

The town I live in is a small(ish) town in Missouri of about 8,000 residents. The HOA here seems pretty relaxed, and it may be because our annual dues are only $50 and there isn't much money to afford a more serious HOA. There are a few homes in my particular 'area' of the subdivision that have detached garages on their lots, and from talking to my neighbors they were all built after the homeowners moved in.

As you all noted, it will really just come down to getting approval from the HOA board, and I've got an e-mail in to the president and I am awaiting his response.

After reading all the great responses ITT, I think I'll be more prepared when talking to the bank and when talking with the HOA. I'll keep everyone updated on how things turn out...and if I can get all this worked out, then expect a build thread with LOTS of questions


Edit: I don't want anyone to feel offended because I didn't directly respond to them, but know that I've read EVERYONE'S responses and I appreciate them very much. Don't tell my boss, but I'm posting from the office right now.

 

[Falcon67]

If possible, I would get the lot even if I never built anything on it.

As we all know, rules in MO and your city can well be different than the rest of us.

We own the lots on both sides - the tax assessor was able to combine the lots into a single unit for taxation. BUT - they are still platted as individual lots subject to city zoning. Which means to build my shop, I had to get a variance. There is no HOA here, but every city I've ever looked at had a basic rule against accessory buildings without a primary (house) building in a residential zone. YMMV LOL. I would think in most cases you will not be able to re-plat your lots. It could go as far as a re-survey and a re-fi to combine the properties. You will very likely also NOT find a bank or lending institution that will loan money on vacant property. We had to pull the money out of our azz to pay for our lots. The only other option was a signature loan (consumer loan) with a fairly high interest rate. The good news in our case is that the shop lot and shop are free and clear of any liens. If we get in trouble, we can build a 900 sq/ft bungalo and live next door

 

[mikefromme]

The aerial view looks like your driveway is on the dead end; and you would have to put the shop entrance on the the other road. Which means it'd be a bit of hike through your yard from the shop to the garage. To me that is a PIA -- I always seem to need something that is in the wrong garage. I'd much rather have my shop and garage share the same driveway.

 

[Nighttrain]

Do you have two garages now in the house? Looks like two driveways, or is that a large sidewalk to the side of the house, nothing to do with your questions just curious. Good luck with the venture.

 

[Shoester]

Do you have two garages now in the house? Looks like two driveways, or is that a large sidewalk to the side of the house, nothing to do with your questions just curious. Good luck with the venture.

Yes the house has two garages. The larger driveway on the south side of the house is to the main '2' car garage...although that garage barely meets the requirements for 2 cars and will not fit my wifes 4Runner and my truck. I imagine it MIGHT fit two Prius'.

The smaller driveway on the East side is to the 3rd car garage, which again is very small and will not fit a vehicle. It is my current 'workshop', but is quickly filling up. It is where I park the four-wheelers and other toys, and I have to move them all out into the driveway whenever I want to work on something in the workshop.

Very frustrating and I could use the extra garage space!


It's amazing how fast someone can accumulate so much ****...

 

[rancherbill]

It sounds like a good deal.

Check with the county. Here in a residential area you cannot build a shop on a residential lot unless there is a house on the property.

You might have to do a 'boundary adjustment' to join the two lots back together.