Turning a hobby into a job - Land business finance

 

Have you ever dreamt of turning your favourite pastime into your full-time occupation? Gaining land business finance may be the first step in making this dream a reality. Raising capital to buy land is not impossible if your initial idea is based on sound business principles. You could turn your outdoor interest, whether it is horse riding, paintballing, golf, or shooting, into a viable business.

Finding the Land
There are agents that specialise in land sales. Normal commercial and residential agents do occasionally have land for sale but you are far more likely to find the ideal plot if you go through a specialist agents. You will need to decide on the size and location of the plot you require. This will obviously depend on the business you are intending to set up. It is also worth considering your location very carefully as you will need to be easily accessible to customers or clients. Careful research should be undertaken in relation to the population of the area local to your proposed plot, this may provide you with demographics that can help you predict potential customers. You should obviously choose an area where you believe your service would be in demand and the surrounding area would be able to accommodate your needs. For example there is little point buying a field to put stables on and lease to horse owners if the surrounding land has no riding opportunities or bridleways. There is also little point building a driving range within a certain distance of a similar business, starting a new business is tough enough without unnecessary competition brought about by your choice of location.

Planning
 If your new venture will require you to build commercial property then you will have to consider the planning status of your new plot. Plots without planning permission already granted are far cheaper than those with planning permission. This is because of the risk that you are taking, as there is every chance that planning may not be granted at all. If you are in a financial position to take this risk then it may be worth considering. It may also be worth considering if you are able to run your business, for a time, from temporary buildings that do not require planning permission. However, by far the safest bet is to buy a plot where planning for a suitable building has already been granted.

Finance
A commercial mortgage may be granted on land in the same way as on commercial property and the same considerations should be taken when looking for land business finance. You need to research the market and make sure that you get the best advice in order to get the best deal. You should be looking for the best interest rate on your land mortgage but also be aware of hidden fees and charges. Consulting a financial specialist, such as a mortgage broker or Independent Financial Advisor, will ensure that you receive well informed advice on the best deals available.

Summary
Turning your hobby into a sound business proposal takes time and research. It is worth putting in the time to prevent financial mishaps or poorly informed choices. Sound business and financial advice can enable you to find the best deals out there and make your dreams become reality.

The views in this article represent those of the authors and not those of Speaking Commercial. This article does not represent financial advice and is purely editorial supplied by third party's. If there is information within this article which you wish to rely on then please check those details with relevant financial or other professionals prior to making any important decisions.