Hi,
We are in the process of looking for an old house with a decent land so that we can demolish it and build a new one on top.
However, since we are a first time buyer, we're not sure what to watch out for.. Do we need to do soil test prior to signing the contract? Do we need to get pre-approval from the bank first prior to talking to the RE agent?
Do anyone have some sort of checklist?
PS: The house that we are after won't be sold through auction.
Appreciate your suggestions.
First things first. Have you checked that you can borrow the extra funds needed to build a new home? Also you are supposed to have the Bank's permission prior to demolishing the home - not sure whether you are aware of that. As they have a mortgage over the property any major changes are supposed to be run by the lender first as it changes the value in the property and therefore their valuation / security ratios.
You need to confirm first whether the house you are buying is on legal property and then think of anything else.
Jeremy
How do I go about getting some proof? I presume the real estate agent would be able to provide me that?
Thanks for the advice on talking to the bank before demoing the house. We should have enough savings to cover the building cost..
Any other advice? Soil test? Should we get our conveyancer to see the property before committing to any contract?
Hi Dimaz
My general checklist when looking at purchasing real estate is:
1) Get your finances in order and if possible get pre approval as this is often more attractive to a seller.
2) Try to get a title search of the property - the real estate agent or your settlement agent should be able to get you this or if you have the details of the Title you can search it yourself. Here in WA you can log onto Landgate and order a title and pay for it on credit card (it costs $24). The title should let you know if there are any easements or encumbrances on the property such a water mains, drains, caveats or building covenants that may restrict what you can build or where you can build on the block.
3) Not sure how it works in other states but here in WA not all Water Corporation Sewer easements show up on the title so it pays to give them a call to see where the sewer is located (if it is on sewer that is) and what the easement or set back is from it. This is the amount of space you have to leave by law around the service to allow them access if required. Therefore you cant build within that distance of it.
4) Give the local council a call and check your R zoning which will determine what your minimum setbacks that you need to build within. Also any other pertinent info regarding development of the block. Some flood plain areas have minimum hieght restrictions to the bottom of the slab etc.
Phew that got a little long winded. Sorry
. Hope this helps