It’s pretty straight forward, you can’t build a property without buying land to build it on first but of course, you want to make sure you’re buying the right piece of land to maximise your investment without over capitalizing.
We’ve listed our top five tips to consider before buying your next block of land to get your mind thinking so the next time you’re ready to buy you’re one step ahead.
1. The Site and site conditions
Site conditions decide your developments fate before you have even decided what you want to build. They could potentially affect the cost of the building or even the layout and design of your property. This is because the site conditions depict what work needs to go into the foundations of your property.
The site conditions to be aware of are:
- The type of soil
- How the soil is distributed across the block
- The height of the water table; and
- Any trees or rocks in the soil.
The best thing to do is ask an expert before you purchase the land what the site conditions are so you can determine whether the block you’re looking at will involve a lot of site works.
2. Local authority requirements
Before signing off on your block and the plans you must check with the local authority that you’re able to build what you want. Ask them about these points:
- What bylaws and policies are in place in the area that will restrict your plans.
- Previous recorded use of the landIf there are any title restrictions that could affect the materials you use in construction
- What the plans are for the area that could affect the value of the property. Eg, road construction and industrial activity.
3. Dividing Fences
The rule of thumb with fences is that the adjacent owners each pay 50/50 for the cost of erecting a fence. So, if you have one neighbour on either side of you and one behind that’s three different fences to consider.
Be sure to confirm all agreements in writing to prevent any future disputes.
4. Contract for buying land
The standard contract for buying land in WA is called an Offer and Acceptance contract. In summary the contract is for the purchase of land only and in WA does not provide you with a cooling off period.
5. Protecting your Interests and doing your research
Remember, protecting your interests and investments is vital. You can get more information through the below channels:
- Real Estate Institute of Western Australia
- Department of Commerce
- Be sure to know your profits before you buy the land
- Contact Soverign Building Company, we can do all of this for you!
So, get in touch with Soverign Building Company when you’re ready to start research for your investment. We can handle all of this investigation for you!