Browse Forums Buying Land 1 May 10, 2015 9:50 am We have bought a slice of land 503m2 corner block in an estate in Mango Hill in the latest release. We have signed a contract and its with the conveyancer and all is done with finance etc. All in all, I'm pretty happy with the purchase. One issue with the bank's valuation is the land came in about 30k under the value we paid for it. Luckily the cost of the build was "over valued" so the value of the build didn't really change. The thing that annoys me more recently is that I see that a couple of blocks have come back on the market from a previous release, which are larger in size (512m2), is a standard block and is $30k less than what we have paid. In actual fact, that size block, we would have been able to build the original house plan we wanted. Now there is probably buggar all I can do, but this kind of thing just pisses me off. It is like going to a store and buying a new TV only to have it discounted the following week. Anyone else been in a similar situation, and if so, what did you do? Re: Paid too much for land? 2May 10, 2015 2:23 pm I would say there is nothing you can do about it. Not really like buying a tv as that is a piece of technology and as advances are made the prices change. It is unlikely that your block has got better or worse in the time you have purchased. The developer will not do anything as you are purchasing from the new release. If the blocks you speak of are from a prior release it may be that it is from the secondary market or the developer wants to close out the earlier stage and hence discount. You could ask the developer but I would think chances are very very slim, still worth asking as you will be no worse off. Re: Paid too much for land? 3May 10, 2015 4:29 pm AussieMark I would say there is nothing you can do about it. Not really like buying a tv as that is a piece of technology and as advances are made the prices change. It is unlikely that your block has got better or worse in the time you have purchased. The developer will not do anything as you are purchasing from the new release. If the blocks you speak of are from a prior release it may be that it is from the secondary market or the developer wants to close out the earlier stage and hence discount. You could ask the developer but I would think chances are very very slim, still worth asking as you will be no worse off. Wasn't really a reference to technology was more a ..... you buy a TV and the next day, you have 10% off at the same store or you see it at a discounted price the following week. That was the analogy I was going for. Our block isn't even registered yet, but yeah, unlikely there is anything we can do about it. I'm not interested in the older block, its just the price disparity in my face is a bit of an insult. I like our block (when its registered) and we've since moved on from the original house design we wanted. Re: Paid too much for land? 4May 10, 2015 7:29 pm I wouldn't worry about it too much. In time the value will go up. Particularly if you are near the new rail link. The market for established houses in the Moreton Bay area is quite active, particularly for investors. Build thread: here Land Nov 12, Contract 6/07/13, Consent 15/08/13, Start 20/09/13, Slab 25/09/13, Frame 4/10/13, Brick 21/10/13, Roof 2/11/13, Lock-up 17/12/13, Handover 3/3/14 Re: Paid too much for land? 5May 10, 2015 8:28 pm maximus I wouldn't worry about it too much. In time the value will go up. Particularly if you are near the new rail link. The market for established houses in the Moreton Bay area is quite active, particularly for investors. Pretty close to the new train line. Imagine it will be a 5-10 min walk tops. Re: Paid too much for land? 6May 10, 2015 8:51 pm Expect fairly good growth. I'm 10 mins for one of the new stations that will open in North western suburbs of Sydney in 2019. My place has gone up 15% since I moved in 14 months ago, and the rail line won't be opening for another 4 years. You may not get that sort of growth, but once the rail line opens expect your place to grow in value faster than properties much further from the station. Build thread: here Land Nov 12, Contract 6/07/13, Consent 15/08/13, Start 20/09/13, Slab 25/09/13, Frame 4/10/13, Brick 21/10/13, Roof 2/11/13, Lock-up 17/12/13, Handover 3/3/14 Re: Paid too much for land? 7May 14, 2015 7:31 am bmitchel We have bought a slice of land 503m2 corner block in an estate in Mango Hill in the latest release. We have signed a contract and its with the conveyancer and all is done with finance etc. All in all, I'm pretty happy with the purchase. One issue with the bank's valuation is the land came in about 30k under the value we paid for it. Luckily the cost of the build was "over valued" so the value of the build didn't really change. The thing that annoys me more recently is that I see that a couple of blocks have come back on the market from a previous release, which are larger in size (512m2), is a standard block and is $30k less than what we have paid. In actual fact, that size block, we would have been able to build the original house plan we wanted. Now there is probably buggar all I can do, but this kind of thing just pisses me off. It is like going to a store and buying a new TV only to have it discounted the following week. Anyone else been in a similar situation, and if so, what did you do? Mate question. Did you have to fork out that extra 30g bcoz the evaluation came in under its value? I was told by aussie homes as we just bought land. If its valuated under the asking price we pay the diff? Lucky ours was spot on thank god Re: Paid too much for land? 8May 14, 2015 9:52 am Sorry to hijack but is there a person we can independently hire to assess the value of land bought off plan before access to site or title, or even after that is there anyone available to do so. Similar to how the bank would've valued OP land. Re: Paid too much for land? 9May 14, 2015 4:20 pm vijaytee1 Mate question. Did you have to fork out that extra 30g bcoz the evaluation came in under its value? I was told by aussie homes as we just bought land. If its valuated under the asking price we pay the diff? Lucky ours was spot on thank god Our land was under valued, but our build was over-valued. So in the end, the amount is spot on, but we still have to pay extra towards the land at the start. Essentially it doesn't mean I'm really out of pocket as the value just sits in the offset account anyway against the construction loan. Re: Paid too much for land? 10May 14, 2015 4:27 pm bmitchel vijaytee1 Mate question. Did you have to fork out that extra 30g bcoz the evaluation came in under its value? I was told by aussie homes as we just bought land. If its valuated under the asking price we pay the diff? Lucky ours was spot on thank god Our land was under valued, but our build was over-valued. So in the end, the amount is spot on, but we still have to pay extra towards the land at the start. Essentially it doesn't mean I'm really out of pocket as the value just sits in the offset account anyway against the construction loan. Yeah that stil sux mate. Hope all goes well for the rest of ur build. Re: Paid too much for land? 11May 14, 2015 4:52 pm Not worth worrying about. Things you got might be cheaper than what others pay. Times change and prices move. So long as you were happy and not ch*ated - why worry ? Re: Paid too much for land? 12May 14, 2015 5:49 pm Who's to say those blocks didn't have issues with site costs.. more slope, more rocks, worse soil conditions etc etc.. who knows the reason they were put back on the market.. you might think it's the same amount of land.. but is it the same quality of land? In and around our area, there are a lot of parcels of land that are bigger than ours selling for less or the same but the quality of the land is no where near as good. Like there is a 700sqm block selling for roughly the same as our 383sqm block went for but the slope on the land is like 20 to 30 degrees all the way from back to front.. the site costs by comparison to our own almost completely flat land would be much different and who knows how much rock was in that site, while ours was completely free of rock and the soil rating for ours was M class.. really good quality land. Paddington 29 @ Blue Horizon Estate (Lot 105, Wattleridge Crescent, North Kellyville) Our Build Progress Blog: http://light487.wordpress.com/ Re: Paid too much for land? 13May 14, 2015 8:40 pm That's a shame about the under valuation. Our corner 567sqm block in stage 5 was valued 100% of purchase price, so we didn't have any problems. I noticed the block from the earlier stage back on the market too. Prices are increasing fast in our estate so this one's a bargain. Are you in stage 6? Re: Paid too much for land? 14May 15, 2015 8:00 am The blocks that were shown on realestate were from the Markwell release (original pricesheet is 6/9/2014): LOT 501 - 512m2 - $240k LOT 502 - 477m2 - $238k light487: Pretty unlikely. Most/if not all the blocks are pretty level etc. It is hard to gauge however as I don't see many people on here (just manderinne) who is building there. manderinne: We've bought in Stage 7 (JEPSON) release. Supposed to register in June. The only other thing I could think of which may have contributed towards a price increase (besides the obvious) is the Jepson release is slightly closer to the residential precinct which is in the middle of the development. Given that is many years off however, I don't think that was an overly contributing factor. Re: Paid too much for land? 15May 15, 2015 11:08 am bmitchel The blocks that were shown on realestate were from the Markwell release (original pricesheet is 6/9/2014): LOT 501 - 512m2 - $240k LOT 502 - 477m2 - $238k Too funny - 501 was our original block! The developers took it back 12 hours before we were due to sign the contract - because it was supposed to be used for the display village carpark. Obviously that didn't end up happening so those blocks are back up for sale at the original price. With regards to the price increase, I think it's just supply and demand. Capestone is cheaper than North Lakes which drives up demand, but then the developers increase prices and decrease land sizes to get more profit. Unfair, but seems to be standard practice. That's one of the benefits of getting in early I suppose. Our land value has increased $30,000 since we bought it in September. Re: Paid too much for land? 16May 15, 2015 11:41 am Same.. our land has increased in value by over $150,000 since we bought it in Feb 2014. Of course now our council rates have gone up as a result.. lol Paddington 29 @ Blue Horizon Estate (Lot 105, Wattleridge Crescent, North Kellyville) Our Build Progress Blog: http://light487.wordpress.com/ Re: Paid too much for land? 17May 15, 2015 12:01 pm manderinne bmitchel The blocks that were shown on realestate were from the Markwell release (original pricesheet is 6/9/2014): LOT 501 - 512m2 - $240k LOT 502 - 477m2 - $238k Too funny - 501 was our original block! The developers took it back 12 hours before we were due to sign the contract - because it was supposed to be used for the display village carpark. Obviously that didn't end up happening so those blocks are back up for sale at the original price. With regards to the price increase, I think it's just supply and demand. Capestone is cheaper than North Lakes which drives up demand, but then the developers increase prices and decrease land sizes to get more profit. Unfair, but seems to be standard practice. That's one of the benefits of getting in early I suppose. Our land value has increased $30,000 since we bought it in September. That probably explains why they were up for sale. I'm guessing 501 & 502 were earmarked for that and perhaps they have now changed their mind. I have no doubt that the land will be the correct value at the end of the process, just a little frustrating for the valuers to come back under. In the end it doesn't matter, but I'm betting had I split the loans up, I would of been having a bit more of a hard time. It will be neat but you won't have much freeboard. At least they are not weep holes. Are you in a high intensity rainfall region? The regulatory slope is only required… 3 8285 Firstly, if your house is still under builder's warranty (10 years in Victoria) you should have no need to crawl into roof space but let the builder handle it, unless you… 3 5646 Not sure if that works? I was told the issue is the headspace clearance requirement on step 4. My builder is proposing shifting the beam 310mm towards the kitchen...I'm… 2 2664 |