When you buy land, you are making a significant, long-term investment. It will take up a considerable part of your finances and may take years to pay. This requires research and plenty of contemplation because it will tie up your cash. You have to consider several factors before making a final decision.
Here are some of the things you need to consider when you want to purchase any property or land for sale as an investment.
Potential for Growth
A house in a certain neighbourhood can increase value over time. You might get a good deal for a piece of land that will gain value as the years go by. Review the area to determine if there will be future development such as parks, schools, tourist attractions, shops and others. These have the potential to attract more homeowners. If you decide to start a family, a school or nursery is easily accessible.
Be aware of the potential hazards of the neighbourhood you are buying land in. Some of the disasters that might occur in Victoria are bushfires, earthquakes, heatwave, storms and floods. Take these into consideration when building your home on the land you purchased. Knowledge about potential dangers allows you to get the ideal insurance. You will also know which materials to use when you have your house constructed.
Type of Soil
When you are looking for land to purchase, you have to consider its soil type. Identify if it is “reactive” this indicates its likeliness to move in the event of decrease or increase in moisture. Soil that is reactive is expensive because construction of a house on it requires special slabs or deep pilings to hold a structure in place. Have the soil checked for reactive characteristics before signing the contract.
Former Land Use
A piece of land might be attractive because of its surroundings and accessibility. However, before you make a purchase, look into its former use. Was it farmland before? Was there a factory on it? What pesticides or chemicals did its old owner put in it? The answer to these questions provides you with enough information to make an educated decision.
Check with the local council and identify the building restrictions and rules. This varies depending on the location of the land you want to purchase. These rules may include the style of home, colours you can use, appropriate materials, the type of fencing, and the location of the house on the plot.
Characteristics of the Block of Land
If you already have a home design planned, you will have to consider the characteristics of the land you want to buy before building it. A big plot will be easy to construct on. However, land in urban and suburban communities has restrictions such as width and depth.
A sloping piece of land also comes with building specifications; it may require cutting and filling. It costs more to build a structure on a slope.
These are some of the things you need to look into when you purchase land properties for sale. Factor these into your budget to determine if it is within your finances and future plans.