Buying a block of land sounds pretty simple right? It can be, but be sure to avoid these common pitfalls when buying land.
Failing to think long-term
The block of land you buy should be purchased with your lifestyle in mind. If you’re planning to have a family soon for example, you’ll need a block that’s big enough for growing children, or extra cars.
A block of land might look big and perfect for you now, but it should meet your requirements down the track too.
Just because you’re buying an empty block of land, doesn’t mean there aren’t associated costs. If there are slope issues or the ground has problems with rocks or sand it can mean the added costs of siteworks to sort it out.
It’s important to check with your builder to establish what the total land and house package will cost.
Missing out on inclusions
Sometimes a land purchase will include fencing and landscaping but if it doesn’t you might need to landscape yourself. You may also need to put in retaining walls yourself if they’re required.
If you get prior financial approval from a bank before hunting for a block of land, what happens in your life between the approval and settlement can affect your loan application.
Events like major credit card purchases or credit extensions, or changing jobs might break the bank’s requirements for finance so makes sure you know what the requirements of your loan are and abide by them.
Getting the location right
Like thinking ahead when looking at the actual features of the block itself, buyers need to be practical when deciding on the location of the block they purchase.
It’s important to work out what things you do in life and whether it will work in your new location. Whether it be parks, transport, shopping, friends, family and so on, whatever is important to you needs to be do-able in when you are living on your new block.
Forgetting about location-specific costs
Construction costs on your new block could be higher than you allow for if your location attracts extra costs because of just that – its location.
For example, if you finally buy your dream block right on the coastal waterfront, you’ll need to spend extra on using corrosion-resistant materials during the build.
Fitting a house on the land
When you’re buying your block you’ll probably have a house design in mind already. Setbacks, easements or shape lot can make fitting your house design on your block tricky so make sure you discuss this with your builder or developer first.
It’s a good idea to have your block of land work together with your home design. Your build might work best if it works with the characteristics and orientation of the land space.
A good example is ensuring the commonly used rooms will be facing north on the new land block to increase liveability.
Failing to do your research
There are different types of blocks of land, they aren’t just empty spaces that are all the same. The type of land you are buying affects the type of house you can build and it affects your lifestyle so it’s important to research and understand the land products and match your land purchase to your lifestyle.