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My parents bought a lot in a development that had a story similar to this--started shortly before the crash, only 2 homes out of the 20 were built, developer went bankrupt, etc. 3 years ago the bank started selling the lots and my parents got in early. At this point, the entire neighborhood is built out. However, the HOA is a disaster in a neighborhood that size.
It might not be bad, but I'd definitely check into the HOA (if there is one) and any potential legal ramifications.
OP states that the lot is in town, and all services are in place.
OP,
Is the lot an "amazing deal" because the price is very appealing in comparison to other lots on the market outside the development?
Or, is it only because it is heavily discounted from the development's peak pricing?
If the former, I could be interested in such a deal.
If the latter, I would think it would be much less appealing. (But... Too much snow for me. )
What protections are there that future homes, if/when built, will support the cost and value of your dream home?
Zoning? HOA and Deed restrictions?
"The pioneers get the arrows." IOW, you have a lot of risk building in the first wave. If you can be certain to some degree that you will not end up with your dream amongst a scattered mess of shacks, the risk may be palatable.
Is there an HOA? If yes, 3 lots (assuming you buy) will carry the weight of the subdivision. I just looked back up at the OP and saw this is in B.C., which I know nothing about. (I was getting ready to tell you what language in your HOA doc to look up, but it may not even apply).
Unless it is significantly less than other homes, I would not take the chance.
My husband and I are hoping to buy some land around Kimberley, BC upon which to build our dream home.
Pickings are slim for vacant land, but then we found a development with the perfect lot: .4 of an acre, all services in place, in town, magnificent mountain views, great price.
HOWEVER (you knew that was coming lol). The development is over 8 years old. After selling two measly lots back at the beginning, the developer went belly up when the real estate market crashed and the ensuing years have been a mess of lawsuits (now settled) and court ordered wheeling and dealing. One of the original parties is now back in business and trying once again to sell the lots. Nobody is touching them.
Which comes to us. We could buy and build, but if the rest of the lots don't sell we might have some serious problems down the road if we ever need to sell our place. Or, we could get an amazing deal and when the market picks up (maybe because we bought and others saw that someone else had the confidence to buy??), the development will, you know, develop, and our lot will become a desired property.
What say you?
Here's the view from the entrance to the development.
Wow. Beautiful place. BUT...when house hunting, I ran across a few (just a few) areas like that. A "new" subdivision, way out of town, with no stores or amenities nearby, and just a few houses in the subdivision. The "new" subdivision was actually years old and had been abandoned. So you had these isolated houses out in nowhere, with a few paved streets that went nowhere. First thing I wondered is...what's wrong with it? Could be it turned out to flood or something, or maybe the builder just went bankrtupt. Maybe the people liked living out there without a lot of activity.
So you take your chances. This could happen. It probably won't be permanent, but it could last for many years, before hte area is built up. But you know your region better...it's a beautiful spot (per your pic). Is it likely to attract new buyers in the future? Is the city being built up in that direction?
Also consider...the "subdivision" owner...whoever that is, does not HAVE to continue with residential plans. He could change it. Zoning could be easily changed to accommodate a new purpose. OR...he could change the price range of the homes. I'm sure you've seen subdivisions like that...a few big, expensive homes, and the rest of them are lower priced and smaller. That may have been because the price point set turned out not to be as salable. So after the first few homes sold, the builder started building "down" to get faster sales. Which impacted the property values of the first several expensive homes.
If there's other vacant land nearby, some objectionable business might go up there.
All things to consider. I don't know if I'd risk it, because I don't have enough money to take a loss and move again. You may be able to. And of course, the area could boom. It's a beautiful spot. I can't imagine other people not wanting to live there. But you know the region better than us here on this forum.
I am leery of buying in a new subdivision that is not substantially completed, or buying near vacant land. You never know what will happen to that land.
I suspect buyers have been frightened off by all the legal issues. Verify that those are all resolved.
I would not buy unless there is a very strong HOA with strict rules and a way to enforce them. I would not like to build a beautiful house with a mountain vIew in an area where no one else had yet built and then have all the neighbors move on a mobile home and build sheds for their pig farm.
How big is the development? (How many lots). The two that sold, are they developed or never built? Is the development near “town” or in the middle of nowhere? How long do you expect to live there before selling? Are you getting a great deal on the lot to compensate for the risk? So many factors to consider. Have you talked to a local realtor about this?
ETA that picture is beautiful
There are approximately 50 lots in the development. The two sold lots each have a house on them, with a family living there. It's directly in town, and we would hopefully live there until we can't anymore, so 20+ years.
And it really is a beautiful place. :0)
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