What special considerations apply when buying land for a private home?

Analysis: The critical success factors in land acquisition

To safely acquire a plot of land, you need to understand the various aspects of buying land . We've broken these down into building regulations, geological considerations, and financial factors.

Building regulations: What am I actually allowed to do?

Perhaps the most important aspects of buying land concern its permitted uses. Your dream house exists only in your mind, but the zoning plan dictates reality.

• Floor area ratio (FAR) or building volume ratio: This figure is one of the crucial factors when buying land . It determines how much living space you are allowed to build in relation to the plot size. A plot of 1,000 square meters is of little use to you if the FAR is only 0.2 (only 200 square meters of gross floor area allowed).
• Boundary distances and building heights: Purchasing land also involves reviewing cantonal and municipal building regulations. How close can you build to your neighbors? How high can the roof ridge be? These aspects of buying land restrict your architectural freedom.

The Underground: The Invisible Costs

Nothing causes unforeseen costs as often as the geological features of land purchase .

• Contaminated sites: In Switzerland, there is a register of contaminated sites ( KbS ). One of the essential considerations when buying land is consulting this register. Was there previously a gas station or a landfill here? Remediation can cost millions.
• Soil conditions: Is the ground rock (expensive excavation) or peat/water (expensive piling)? These physical characteristics can increase the construction budget by 50,000 to 100,000 Swiss francs. A geological survey before purchase is therefore almost mandatory and one of the recommended measures to avoid negative characteristics when buying land. to exclude .

Development : Connection to the world

A piece of land without roads and water is worthless. Development is one of the most financially significant aspects of buying land .

• Fully developed vs. land zoned for future development: Is the sewage system already laid to the property line? If not, you will have to contribute to the costs. These fees for road , water, sewage, and electricity are classic features of buying land that are often underestimated.
• Purchase risk: Never buy land designated for future development at the price of building land if the rezoning is not yet legally binding. The risk that the municipality will change the plans is one of the most dangerous aspects of buying land .

Legal encumbrances: The land register

The land register is the bible of real estate. The easements recorded here are legal peculiarities of land purchases that massively influence the value.

• Easements and utility rights: Is the farmer allowed to drive across your land? Does a main municipal water line run across your garden that you are not allowed to build over? Such peculiarities can make purchasing land impossible.
• Proximity building rights: Does your neighbor have the right to build closer to your property line than usual? These special circumstances can reduce your privacy and the resale value of your land.

Financing: The banks' strict rules

The financial aspects of buying land are the biggest hurdle for many buyers . Banks finance land differently than houses.

• Equity capital: While 20% equity capital is sufficient for a house, banks often require 50% equity capital for land purchases due to the special characteristics (higher risk, no returns) .
• Pension fund assets: One of the most important features of buying land is that you often cannot use funds from the second pillar (pension fund) for the land purchase itself, but only once a concrete building project has been approved. Therefore, you need a significant amount of "hard" liquidity.
• Construction loan: Instead of a mortgage, you often initially receive a construction loan (current account), which is later converted into a mortgage (consolidation). The interest rates and fees for this are further financial considerations when buying land .

Architect's obligation: The hidden shackle

Sometimes land is only sold if the buyer commits to building with a specific architect.

• Architect's clause: This clause is one of the contractual peculiarities of land purchases that must be carefully examined. It binds you to a partner, even if you don't get along well.
• Tied-to-value deals: Be careful with such special arrangements when buying land . Often the fees are higher than usual. Check if you can buy your way out of this obligation.

Time factor: The construction obligation

In many municipalities, a building obligation is one of the regulatory features of land purchases .

This means you have to start construction within, for example, 2 to 5 years.

If you don't do this, the municipality often has the right to buy back the land (at the original price). These special provisions for land purchases are intended to prevent speculation, but they put you under time pressure.

Conclusion

The question "What special considerations apply when buying land?" reveals that the path to owning a home on a greenfield site is more challenging than buying a condominium. The specific aspects of buying land require a deep understanding of building regulations, geology, and financing. You're buying potential, but also risk.

Don't be blinded by the beautiful view. Carefully examine the specifics of the land purchase in the land register and the register of contaminated sites. Do not sign a purchase agreement without clarifying the building density and development costs . Working through a checklist of these specifics will prevent costly surprises and lay the foundation for a worry-free building project.

If you want to know whether the price for your desired plot of land is justified given the local characteristics of land purchase , or if you need support in checking its suitability for development, Loft offers comprehensive land analyses and data to secure your decision.

Glossary

• Special features of land purchase: The sum of all specific legal, geological and financial factors (such as development , zoning plan, contaminated sites) that make the acquisition of building land more complex than that of existing real estate.
• Floor area ratio (FAR): A key figure that determines how many square meters of living space may be built per square meter of land. One of the most important building law features when buying land .
• Register of contaminated sites: A directory of potential soil contamination (legacy pollution). This assessment is a mandatory requirement for land purchases to mitigate risks.
• Development : Connecting the property to water, sewage, electricity, and roads . The costs for this are a key financial consideration when buying land .
• Easement: A right (e.g., right of way ) belonging to a third party to your property, registered in the land register. Such legal peculiarities can restrict land use.