Considerations when buying vacant land.
Considerations when buying vacant land to save you money.
Along the journey of building a new home, finding and buying land is the first major step. In today’s blog were going to explore some of the key points you need to consider before making an offer on that ‘fabulous piece of dirt’ you’ve fallen in love with!
- Finance - Where the purchase of land and future house construction involves finance, it’s important to consider bank or lender policies around size, zoning, and location amongst other factors to ensure you don’t find yourself with a vacant block you can’t use and some shattered dreams.
- Zoning - Highfields Builder recommends obtaining a local council search to ensure the property is zoned for residential use for a start, and whether it’s located in a flood risk area amongst other potential problems. Look at any other restrictions the local authority has or may place on a construction project in that area. In cases where the land was previously used for industrial or commercial purposes, consider undertaking checks for environmental contamination.
- Easements – We recommend finding out about future plans for the subdivision or neighbourhood. Some red flags would include proposed power line upgrades, council infrastructure etc. As well as having a negative visual impact, any infrastructure may affect what you can build on the property and its position on the land.
- Real Property Description – If you’re buying land in a new sub-division, we recommend obtaining a copy of the registered plan to ensure the lot and plan numbers correspond with the contract details. i.e. Make sure you are buying the correct block!
- Covenants – Where existing over a subdivision or estate, a covenant may impact what can be constructed, its size, visible features and its location on the block.
- Hot Tip – Lets slip this tip into the discussion at this point! When purchasing land, it’s wise to engage with a builder prior to making a final decision and signing a contract. Builders have valuable knowledge that may assist in deciding between different land options even in the same estate, and it could save you thousands!
- Soil tests – The costs associated with a soil test are minor in comparison to the risk of a subsequent poor rating. The different ratings impact the engineering required for the foundations, and the difference between one rating and another can equate to thousands in additional costs!
- Topography and slope – The slope of the land will impact the design of a house and the likely conditions your local council will place on the engineering as well as for managing the drainage and overland flow of water. You can read this to mean potential extra construction costs.
- Hot Tip 2 – Highfields Builder always recommend consulting a qualified lawyer who’s experienced in property transactions before signing a contract. Your lawyer will provide you with valuable advice on all the above points and more!
This blog is intended to give you some key tips to consider before buying vacant land for construction purposes. It’s not intended to be a definitive list and we recommend consulting widely to get all the information you need to make an informed decision.
When it comes time to plan your new home construction, the team at Highfields Builder are ready to support you from that initial enquiry until the key handover. We’re your local home building specialists across Toowoomba and nearby regions and build quality, energy efficient and cost-effective homes for owner occupation or investment purposes. LIKE us on Facebook @ www.facebook.com/highfieldsbuilder
This publication series covers home building, real estate, home finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as legal advice. Highfields Builder Pty Ltd recommends that professional legal and/or financial advice should be obtained before taking any action on the basis of the general information presented in this publication.
Written and Published by www.presentprofessionally.com.au
Highfields Builder is your local home building specialist in the Toowoomba region
Scott, Bonni and the Highfields Builder team are focused on building strong relationships with customers and delivering outcomes that exceed expectations. The process of building a home can be complex and every customers situation is different. When you build with Highfields Builder you become part of a team committed to delivering the highest standards of excellence in residential home construction, from enquiry through to handover.
DISCLAIMER
This article may include information on home building, real estate, home finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as legal advice. Highfields Builder Pty Ltd recommends that professional legal and financial advice should be obtained before taking any action on the basis of the general information presented in this publication.
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