There are several ways to invest in a property and climb the property ladder. One great option could be to buy a block of land in a new land release Melbourne.
What Is Land Release?
With regard to land release, new blocks of space become available for sale for the first time. These are usually related to residential estates owned by property developers. One can buy either land only or land along with the house package.
Buying Land Only
When one buys only space, one gets the option of building your home whenever one is ready for it. A builder who is suitable for the construction can be chosen. One can build straight away or years later (based on the terms of the purchase contract). One can build a house ideally suited to one’s needs or to serve as an investment property.
Do the Hard Work
Besides conducting one’s own checks whether the block is big enough for the home one desires to build and the price of the block is similar to neighbouring blocks, it is vital to get independent professional advice, before signing any contract. Hire the services of a solicitor to scan the purchase contract.
Like with any other property purchase, one should do research on the area and stay updated with the latest market information. There many online resources and apps, which help you to access sales histories, clearance rates, auction rates, and suburb profiles, new land release in Melbourne and throughout Australia.
Arranging Finance
The mode of getting a loan for a space release block is much different from getting finance for an existing property. One can take a standard mortgage to purchase the space and take out a construction loan later when you plan to build. In some cases, the construction loan could cover both the building of the house and the space purchase.
About Construction Loans
Typically, construction loans are drawn progressively, aligned to the various stages of building the home. This can save money since one only pays interest on the balance drawn until the loan is completely drawn. The payment on construction loans consist of interest only till the building is completed, and the loan is totally drawn when repayments switch to interest and principal.
Buying From Land Release
There are many law firms with several years of helping clients who desire to buy blocks of space. As opposed to the process of buying a house, there is no need to worry about construction issues, but there are some other issues.
The most crucial factor is the nature of the future use of the space. For this, much homework needs to be done to ensure that the intended use is possible. Don’t just assume things. For instance, if one wishes to build a home, one must consider whether the Zonal council of the area will permit residential use. One can depend on conveyancing experts of law firms to offer advice on pitfalls with regard to buying a block of space.
Issues
The following are some issues related to buying a block of land:
- Approval
Before construction a home, shed, or road on the space, one will require building or development approval. It is good to find out any issues that could interfere with how one desires to use the land, much before the actual purchase. This information could be provided by the town planning dept. of the Local Council.
- Services
In case the space buyer intends to build a home on the property and reside there, he must know if services like internet, power, water, electricity and gas are available. If so, where are they located? Ensure that such information is available beforehand to avoid the situation where lack of such services interferes with plans like residing there.
- Right of way
Other parties like water or electricity authority may have the right to access through the space purchased by a person. Such easements may impact where one can and cannot construct on one’s block of land.
- Soil
One good idea is to test the soil since the kind of soil could have an impact on the cost of foundations for a home.
- Covenants
Ascertain whether space is subject to any covenants like restrictions on the mode of development of land or kind of building materials to be used. For example, if the home is close to a race course or an airport, one needs to double glaze the windows of the home to minimize noise.
These are all aspects related to buying from a land release.
