How to buy Land?

Hi Tash,

Congratulations on your desire to buy your own land and build.

We recently did this and it’s the best thing ever!

We were also first time purchasers but the process was super easy. Basically we just contacted the land sales office for the area we liked, found a specific block that we wanted which was available (yet to be registered but not far off). We then got the contract read and once we were happy we placed our deposit. The contract was subject to finance but in all honesty the whole process was fairly straightforward and simple. You generally will also need a conveyancer as well. Note: we bought in QLD, but I doubt the process is much different in other states.

You can also get Pre-approval from your bank / broker to determine how much you can borrow.

Good luck with your journey!

A good little tip for buying any property is to put in a Dial Before you Dig request on the block. They send you back all the known service's and easements on the land. Best thing is it's a free service.

Which direction does the block face? Is it an average size? What are the neighbouring blocks like.

My number one pointer would be to choose a block that faces the right direction. As you really want to build a home orientated correctly, with living areas facing north.

https://www.yourhome.gov.au/passive-design/orientation

This is why a premium is paid for blocks with southern frontages. As living areas which face the backyard will face north.

Living areas facing north will be brighter, warmed by the sun in winter & shaded (by eaves) in summer.

https://www.yourhome.gov.au/passive-design

The perfect block - when all other things, like privacy, typography & views are equal - a wide southern frontage block. As it will have great access to northern light.

The other end of the scale, a narrow northern frontage block. Usually the garage will block much of the northern light from the home, & the living areas will likely face south, making them dark, & cold in winter.

An eastern or western frontage block, somewhere in between. Could be good, could be bad, depending on what's to the north. A large northern neighbour could overshadow the block. North facing living areas will likely face a neighbour in any case, reducing privacy.

Oops! Sorry neighbours all on the right hand side and behind.

Another thing you should do is speak to a few builders. Most will be able to tell you the site costs in the area you are looking at. They can also tell you what size house you can build on the land. Also many conveyances will look over section 32 for any red flags for free.

When looking for a block to build I think you have a great opportunity to plan for a passive solar design. I would highly recommend looking into ddarroch's post and the yourhome link. Learn the basic principles and let this guide your decision on buying a block. Some sites are very unsuitable for an energy efficient house and consequently it will be an uphill battle to design a home that is not grappling with hot and cold temperatures throughout the year (not to mention costly). You will also be much more comfortable in a passive solar designed house

What ddarroch has said is key. Also look for potential shading from large trees or buildings that will block any northern sun in the winter. Also look for any potential shading from the east and west that could be a benefit in the summer. We said no to a block simply because it was very likely that the single storey house to the north was going to be knocked over for a block of townhosues (as most sites were on that street).

Don't be afraid to go and spend time at the block at different times of the day. This is an opportunity that you can't usually get with buying an existing house. You can really test out what the neighbours are like.

The other things I would advise is to get a report on any easements or encumbrances that may affect what and where you can build. Also a soil report may be worth the upfront cost as it may turn out that the soil is very reactive or perhaps contaminated. I was lucky in that the previous owner had already had one of these done. It was an extra reassurance that the soil was sound for building and for growing things. Ask the agent if there are any reports or even building plans that the previous owner may have had done. The council is another area to consider. They may have strict building restrictions and you could end up having to build something that is different from what you intended.

This is all time consuming but dilligence now can save you a lot of money and stress in the future. You can also end up with a very comfortable and livible home

It's the same as an established house.

If you think you know what it's worth and are willing to make an offer, just ask the agent for a letter of offer. On that, you specify a price and usually other details like preferred settlement period and if the offer will be subject to anything like getting finance approved etc. You should also be able to nominate a deposit (only has to be enough that you wouldn't easily let it go. Doesn't have to be a set %). You only pay that deposit once the offer has been accepted, you have signed a contract and the cooling off period has ended (can just transfer to the agent's trust account). That then gets used as a part of your payment AFTER settlement has finished.

You are not bound by an offer. Even if they accept you can just tell them no thanks.

It's up to you what strategy you take with the offer. Agents are incredibly deceptive people and will spin you all sorts of nonsense to get you to offer more. But as the buyer you never really know.

Good luck but make sure to do your diligence as well.