Things To Think About When Buying Land
As a prospective land buyer in Australia, whether you’re an investor or just looking for a place to build a home, you may find some aspects of the procedure daunting. Luckily, following a few simple rules can help to protect you from making errors that could cost you thousands of dollars. Read these tips, then you’ll be ready to sign contracts – so come and find your land of dreams in Melbourne.
1. Do your research thoroughly
Every home is different, so you can’t simply assume that one will be like another. Some areas will be more suitable for commercial exploitation; some for residential use. Australian property laws can be complex, and it’s vital to get professional advice, but make sure you think carefully about the surrounding area. As well as affordability, residential land buyers should check the distance of the commute into central Melbourne, while those investing for commercial purposes will have to take more notice of fiscal implications such as GST, capital gains tax and stamp duty.
2. Set a budget and stick to it
Although interest rates are currently very low, that won’t always be the case – so don’t overreach yourself when deciding how much you can afford to borrow. You’ll need to think about your income now, as well as what it’s likely to be in future years. Consider other regular outgoings like credit card bulls, and remember that contractual agreements are unlikely unless you have finance approval. If you’re using your own funds, rather than credit, to pay for the land, then bank cheques are often the only acceptable kind.
3. Auction purchases are usually final
Assuming you’re bidding against others, rather than making an individual negotiation, for the land you’re hoping to buy, you should realise that you will have less legal protection than in many purchases. For example, there’s no “cooling off” period for this type of sale, whereas you’ll usually get three days to change your mind with a negotiated deal. Melbourne land and property sales are subject to the law of Victoria, so get professional advice from a specialist in the area – not one from out of state!
4. Find a good conveyancer
You’ll have noticed the repeated advice to get help from someone who knows what they’re doing – this is where conveyancing comes in. Use one in Melbourne, not hundreds of kilometres away, as local knowledge helps a lot. The conveyancer handles a number of vital tasks, ranging from spotting any unusual conditions in the terms of sale to working with your bank to ensure a smooth transfer of ownership. You will need to let your bank know when you engage a conveyancer, since they will be responsible for the handling and transfer of a large quantity of your money.
5. Don’t rush the final stages
It’s natural to be excited when the purchase contracts have been exchanged for your new block of land, but that’s not the end of the story. Don’t immediately start building on your land, even if you’re certain what type of house you want there. A decision made in haste is often regretted later, and you’ll be much happier if you take your time and end up with a property to be proud of. Follow these tips and you can come and find your land of dreams, not your land of nightmares! Melbourne is a wonderful place to live and to develop land – but it’s an investment that will take time. Bear that in mind and you can look forward to success