When considering the purchase of a block of land, make enquiries to see if there are any easements or restrictions that might affect the use or resale of the land.
Purchasing your own piece of land and building the house of your dreams can be one of life’s most rewarding experiences provided you prepare carefully and seek information before you commit yourself.
When looking around at blocks of land you should consider the following matters:
- Location: Is the area one in which you would be happy to live? What facilities and amenities are nearby? What about shops and transport?
- What services are available (electricity, sewer, water, phone, natural gas)?
- Have your builder and engineer inspected the site.
- Is there good access to the site?
- Are there any Council restrictions on building?
- Are there any covenants outlining what you can and cannot build on the land?
- Is the land affected by any easements or other restrictions
- Is there a Tree Preservation Order covering the land?
One of the best investments you can make with regards to land is conducting a soil test as early as possible.
Make your offer on the land subject to a satisfactory soil test so that if your block of land proves to be a problem site in any way then you can negotiate your estimated additional costs down from the contract price, or walk away from the contract with your deposit returned.
This could either save you thousands off the purchase price of the land or allow you to walk away from the deal.
When considering the purchase of a block of land, make enquiries to see if there are any easements or restrictions that might affect the use or resale of the land.
Blocks with a steep gradient that have not been retained will incur high building costs. Sandy and light soils may need reinforcement even over light gradients, and thick clay or rocky soils may incur additional excavation and tipping costs.
Damp blocks may require additional drainage, even across garden areas, while the costs or suitability of underground garaging or cellaring can vary hugely depending on the wetness of the site.
Sewerage line easements may not be registered on the Certificate of Title relating to the land, but may significantly affect the developmental potential of the land.
On request, the selling real estate agent should be able to get this information.
