Buying Land in British Columbia: What to Know Before You Commit

Michael A. Jones – PREC* | Royal LePage Kelowna

Buying land in British Columbia can be one of the smartest long-term real estate moves—if done right. It’s not the same as buying a home. It comes with zoning complications, hidden costs, and servicing hurdles. Whether you’re planning to build in Kelowna, invest near Vernon, or retire on an acreage in Lake Country, here’s what to know.

Zoning: The Deal Breaker

Zoning determines what you can build, and where. It also tells you what you can't do. Don’t rely on the MLS—call the city or district directly. You can also review Kelowna's official zoning bylaw for clarity.

• RU, R1, R2: Single-family or multifamily homes. Each has specific setbacks and height rules.
• A1 / ALR: Farmland. Building restrictions are tight. Great if you want an orchard; tough if you want to subdivide. Learn more at the Agricultural Land Commission.
• Commercial/Industrial: Not for residential use. Often needs rezoning to build a home.

Here’s how zoning works in BC and why it matters »

Utilities & Services: Don't Assume Anything

Servicing land is expensive. Many lots come without power, water, sewer, or internet. You’re on the hook to bring those in. For property records, try the BC Land Title and Survey Authority.

• Well drilling: $10K–$30K, plus filtration if needed
• Septic: Requires soil testing and permits
• Power: Cost depends on distance to nearest line
• Internet: Often limited to satellite in rural areas

What Kind of Land Are You Buying?

Not all land is the same. Here’s what to expect across the Okanagan. You can also look up land values at BC Assessment.

Type	Description	Considerations
Residential Lots	Urban/rural lots zoned for homes	Topography, views, restrictions
Bare Land Strata	Privately owned, shared roads	Check strata bylaws and fees
Acreages	Often agricultural or ALR	Service access is usually limited
Recreational	Cabins, off-grid parcels	May lack access, or year-round use
Leasehold	First Nations or other leased land	More complex financing, resale limits

Rezoning and OCP: A Slow Game

Planning something not allowed under current zoning? You may need a rezoning application and an amendment to the Official Community Plan (OCP). This can take 6–18 months and doesn’t always get approved. Rezoning can increase value—but only if done carefully with community support and city planning input.

Financing Land in BC

Banks see land as higher risk. Expect:

• 25%–50% down payment
• Shorter term (1–3 years)
• Higher interest rates
• Construction plan required for better terms

Explore mortgage types — land loans differ from home loans »

For federal resources on building or financing raw land, visit the CMHC website.

Hidden Costs Add Up Fast

Even “cheap” land can get expensive fast. Watch for:

• Topographic survey costs
• Development Cost Charges (DCCs)
• Riparian setbacks or environmental reviews
• Archaeological review on certain lands

First Nations Land & Leaseholds

Many parcels near Kelowna and Westbank are on First Nations land. This land is often leasehold, not freehold. That means you’re buying the right to occupy for a fixed term (e.g., 99 years), but not owning the land itself. Financing and resale may be more complex. Always check lease terms, renewal clauses, and land governance structure.

Red Flags Before You Offer

• No legal access or easement
• Floodplains, steep slopes, or erosion risk
• Outdated covenants on title
• Zoning that doesn’t match your goal

Case Study: Buying Raw Land Near Vernon

A buyer snapped up 5 acres outside Vernon. After purchase, they discovered the well water failed potability testing, and septic wasn’t viable. The lot sat empty for years. Proper due diligence would’ve changed everything.

Smart Steps to Buying Land

1. Check zoning and permitted uses
2. Review title, covenants, and restrictions
3. Ask city staff or a planner about servicing
4. Hire a builder or inspector to walk the lot
5. Budget for servicing and delays
6. Secure financing or pre-approval early

Is Land Still a Good Investment?

Yes—if it aligns with your plans and timeline. Land can outperform buildings in appreciation, especially in growing regions like Kelowna and Vernon. But you need patience, vision, and expert help.

Want help evaluating a land purchase? Get in touch and let’s talk through your goals, risks, and next steps.