What to look out for when buying land

Herbse on 25/11/2022 - 13:28
Last edited 25/11/2022 - 15:12 by 1 other user

I'm looking at getting a piece of land to hold onto for a future house use or investment to sell.

Just starting with this but was wondering if anyone had any tips or things to look out for when it comes to making sure the land is worth it?

Currently I know to look out for:

  • elevation/steepness as this can once cost to level
  • soil testing (I have no idea what for but know it needs tests)
  • subject to flooding
  • utilities it will have connected to it
  • trees or large stones that might need clearing
  • location, if it's worth buying in the area etc
  • costs involved in keeping the land, mowing, council fees, taxes?

Anything else that people who have bought land and wish they knew beforehand that I'm missing? I think it's always great to talk to people who have experience rather than rushing in

Thanks for the help!

Home & Garden

Comments

  • boomramada on 25/11/2022 - 13:35
    +2

    Council regulations, usually tells you what you can or can't do with it.

  • Drakesy on 25/11/2022 - 13:39
    +1

    Easements - services/utilities can cut through blocks and render large portions obsolete/unable to be constructed on. Many blocks are cheaper due to this.
    Do a dial before you dig.
    Although investing and building at the moment would not be a financially sound decision, it's like catching a falling knife.
    Give it a year to cool off/market to drop.

  • oO0Dam0Oo on 25/11/2022 - 13:45
    +1

    Adding onto easements you want to check where the legal point of discharge for storm water. Deeper the better in case you need to install land drainage (aggi drains for example) down the track.

  • Nugs on 25/11/2022 - 13:47
    +3

    what neighbours you 'might' get
    .

  • AndyC1 on 25/11/2022 - 13:47
    +2

    Check drainage in respect of water flow from rain to see if the block will get water flow from other blocks such that it will turn the block into a bog.

    The soil testing is to see if it can take type of house you want to build on it. Sandy soil or clay or rocky soil. If the place was industrial before then you should also get the soil test for nasty chemical residue.

    Check the council regulations to see what the FSR is and how high you can build.

    Ask the person selling the block if there are any caveats on the land before you agree to anything and check the contract to see if there are any caveats in it.

    Check for any future roads, rail, power lines going through the area if you can find this out.

    Check for the nearest schools, bus, rail and shops so you can see how far these are away from your block.

  • core101 on 25/11/2022 - 14:08
    +4

    buying land

    Technically you are not buying land. All you are buying is the privilege to rent a "location of title", aka LOT. Pay no corporate council fees, and they will confiscate what you thought was your land.

  • Mumbles on 25/11/2022 - 14:25

    Fire insurance, termites, zoning of your neighbour's land.

    If you can't get fire or flood insurance then you might be homeless a long time to save up for rebuilding.

    Termite hotspot areas mean you have to pay to respray annually and the pest control won't insure their work.

    Worth to double check the zoning of your neighbours property. If you are urban/city you don't want your neighbours block to be commercial (eg. allowed to turn into a 24/7 McDonalds) or industrial (eg. noisy car smash repairer). Things you can't stop is neighbours killing your view with an approved application for high rise appartments.

  • Brian McGee on 25/11/2022 - 14:38
    -1

    You will have to pay state land tax if it's not your principle place of residence. You get a few years grace if you are planning to build/building, but not for investment.

    elevation/steepness as this can once cost to level

    I don't see the fascination with elevation and making a block level, just look at all the older 1950's houses on stilts or stepped into the land on pilons and such that are still standing. Lazy builders wanting to throw concrete on the ground and jobjob I guess.

  • geshc on 25/11/2022 - 14:48

    hire a surveyor

  • ihbh on 25/11/2022 - 15:16

    Also if there's rock underneath - increases cost of foundation of build.

    future house use or investment to sell

    Land is not an investment because it doesn't generate any income - that means you are speculating on any future capital gains against holding costs including interest and opportunity cost of capital.

    Re future house, generally vacant land is in the outskirts; make sure you/your family, etc. are prepared to uproot, change lifestyles, otherwise this is not a realistic option.

  • websterp on 25/11/2022 - 16:11
    +1

    Cost of removing rubbish or temp fencing as it is guaranteed to turn into a dumping ground and an eyesore if you keep it vacant for a long period.

  • Euphemistic on 25/11/2022 - 19:20
    +1

    Not sure buying land is the best investment. There is no return until you resell or actually live on it and you’ll have to pay rates as well as loan repayments and make some sort of effort to keep it tidy.

    Only buy land if you really want to live on it in the not to distant future.

Login or Join to leave a comment
Login Join