Buying land can be an excellent investment providing you do your research before you buy. Whether you are purchasing land to build a new home or buying a block of land as a long term investment, it is important that you know exactly what you are buying. You need to do your research and ask lots of questions.
Some land is subject to certain restrictions and you could buy it only to find you are not allowed to build the home of your choice. Building companies like Coral Homes Australia provide home and land packages, which can save a lot of stress.
It’s All about Location
Location is the single most important consideration when buying land. You need to buy in an area that has good prospects for resale. No matter how nice the block is, if you buy in an unpopular area you will probably not make a profit when you try and resell. You need to buy land in an area that is close to the amenities you need, things like schools, shops and transport.
Beware the Hidden Costs
Be aware of any expenses you will need to outlay as the owner of a block of land. You will need to pay rates on and you should also check to see if you will be liable for utility costs. You may be responsible for electricity and water costs if these services are connected to your land. Also check if you are connected to sewage or if you will need to install a wastewater treatment system when you build a home.
It is not uncommon for a block of land to be subject to a covenant. Make sure you are fully aware of any covenant that is in place before you buy the land. Covenants are basically private agreements between the landowner and the buyer that govern what can be built on the block. Covenants may dictate what materials you can use to build, what type of fence you have, and other things that affect the visual amenity of the area. While covenants will restrict what you can do, they will also protect you from someone coming into the area and building a home that is below the standard of other homes in the precinct.If your block is part of a subdivision it is likely that there will be some restrictions on what you can build.
You need to understand whether utilities are already connected to your land or whether you will have to pay to have these connected. A vacant block may or may not have electricity, gas, water, sewage and telephone connections. If they are not connected they will cost you money to connect later on.
A survey identifies the boundaries of your block of land. If a survey has been done recently you will notice markers on your boundaries. You may need to get a new survey done is the old one is deemed out-dated or inaccurate.