More Australians are buying vacant land as they opt to make a lifestyle transition. Buying land is beneficial for a variety of projects and ventures, including building a bespoke home, expanding an existing business, or developing a new piece of real estate.
However, due to building rules and regulations, buying land can be difficult. Before investing, it is critical to grasp everything from fundamental costs and local regulations to property studies and easements. Here are five tips to help you get through the process.
5 Things To Consider When Buying Land
For every real estate investment, location is key. Generally, land with no development potential is not a good investment. Don’t acquire land that’s too far away from existing shops and consumers if you plan on opening a new business. And if you’re going to build a home, make sure you purchase in an area that will make for a good lifestyle which includes schools and shops nearby.
Be Aware Of The Associated Costs
Time and money are both required for real estate investment. But what are the expenses associated with buying land?
- Utilities and construction can be very costly, and you may have to pay for electricity and water before you can start paying monthly service costs.
- Some land necessitates the installation of a septic system before development.
Ensure that you get a list of possible costs before buying a piece of land as different properties require different service installations.
Restrictions Due To Zoning
Make sure to check you can build a house on the property before buying it. Some regions are purely for business and not for residence, and some allow only houses versus apartment blocks.
Also remember to check the suburb’s long-term land use, as well as any road expansion plans for details. These plans could have a major impact on future construction and may influence whether your house is too close to a highway, or future construction areas that will cause an uncomfortable level of noise pollution.
An easement gives a person or entity restricted permission to use land that is legally owned by someone else. Let’s imagine you locate the perfect piece of property, but it can’t be reached directly by any public route. This is where easements come in. Make sure that you are aware of the local laws regarding easements as you may need to organise to use a private road owned by your new neighbour.
Building Permits & Approvals
Most real estate projects require building permits and approvals. Before commencing construction, you’ll need government zoning approvals, building and burning permits, and more. Acquiring these can be a hassle, but they serve a purpose.
Many of the same considerations that go into purchasing a house also apply to buying land. Don’t rush into a commitment before you’ve given it some serious thought. There is a lot of responsibility that comes with buying any kind of property, even an empty piece of land.
If you want to learn more about the factors to consider when buying vacant land, please contact us and we’ll be happy to walk you through the process.
Disclaimer: The information provided is for guidance only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. PRD will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.