Finding the right block of land requires careful consideration of location, size, orientation and zoning regulations to ensure it meets your current and future needs.
The process might seem daunting at first, but breaking it down into manageable steps makes it easier to navigate. You’ll need to consider factors like land dimensions, soil quality, slope, access to utilities, and neighbourhood development plans. These elements not only affect your building costs but also your lifestyle and the property’s future value.
When selecting land to build a home in Perth, it’s important to understand how seasonal changes might impact the property. Some areas may experience different drainage issues during winter rains, while others might have specific bushfire regulations to consider. Taking the time to research thoroughly now can save you significant issues down the track.
Quick Considerations
- Research the property’s zoning, restrictions and site conditions before purchasing to avoid costly surprises during the building process.
- Consider how the block’s orientation, size and shape will affect your home design and your lifestyle needs both now and in the future.
- Calculate all potential costs including site preparation, utility services and council requirements to ensure the land purchase fits within your overall budget.
Understanding Land Acquisition
Buying a block of land requires careful consideration of several critical factors to ensure your investment meets your needs and maintains value over time. Thorough research and assessment before purchase prevents costly mistakes and disappointment.
Assessing Zoning and Capital Growth
Before purchasing land, check the local council’s zoning regulations. These rules determine what you can build on the property and may restrict your plans for a dream home. Residential zones typically allow houses, but there might be specific height limits or minimum setbacks to consider.
Look at the historical property values in the area. Has the suburb shown steady growth over the past 5-10 years? Areas with new infrastructure projects, improving schools, or shopping centre developments often experience stronger capital growth.
Consider future development plans for the neighbourhood. New parks, transport links, or commercial centres boost property values significantly.
Speak with local real estate agents who can provide insights about which areas are becoming more desirable and why.
Evaluating Soil Type and Drainage Concerns
The soil type on your block impacts construction costs. Reactive clay soils that expand and contract with moisture changes may require more expensive foundations, while sandy soils might need additional structural support.
Before buying, arrange a soil test to identify potential issues. This investment will save tens of thousands in unexpected construction costs later.
Check how water flows across the property during rain. Poor drainage will lead to erosion, foundation damage, and flooding issues. Visit the site after heavy rainfall if possible.
Look for signs of existing drainage problems like water pooling, erosion channels, or saturated ground. Properties at the bottom of slopes often have higher risk areas and face greater drainage challenges.
Consider whether retaining walls or additional drainage systems might be needed, as these add substantial costs to your build.
Identifying Infrastructure and Public Transport Access
Assess the existing and planned infrastructure around your potential block. Good roads, footpaths, and street lighting contribute to convenience and safety.
Check the land’s proximity to public transport options. Are there bus stops, train stations or tram lines within walking distance? Public transport access will boost property value and make daily commutes easier.
Research future infrastructure plans by checking with local councils and transport authorities. A new train line or major road development dramatically increases property values.
Consider travel times to your workplace, schools, and other frequently visited destinations. A beautiful block might become less appealing if it means spending hours in traffic each day.
Proximity to hospitals, shopping centres, and educational facilities should also factor into your decision.
Bushfire and Flood Risks
Research if your potential land falls within a bushfire-prone area. Properties in these zones must comply with additional building requirements, which can add additional construction costs.
Verify Bushfire Attack Level (BAL) rating, which determines the necessary building standards. Higher BAL ratings mean more stringent regulations and costly building requirements.
Similarly, investigate flood risk by obtaining flood maps from your local council. Properties in flood-prone areas face higher insurance premiums and potential evacuation risks. Even if the land itself doesn’t flood, consider access routes. During floods, you might still become isolated if surrounding roads are underwater.
Site Orientation and Slope
A block’s orientation affects your home’s energy efficiency and liveability. In Australia, north-facing blocks allow for excellent solar access, reducing excessive heating costs in winter.
Consider how the slope of the land will impact construction costs. While a gentle slope provides good drainage, steep blocks often require cut-and-fill work, retaining walls, and special foundations.
Sloping blocks typically add to building costs depending on severity, but they offer advantages like stunning views or interesting split-level designs.
Assess how trees and neighbouring properties might cast shadows across your land throughout the day and year. Excessive shade could make your home darker and colder.
Think about where outdoor living spaces would be positioned. Ideally, these should be sheltered from prevailing winds and receive appropriate natural lighting.
Financial Considerations for Buying Land
Purchasing a house or block of land involves careful financial planning and understanding of various financing options to ensure you make a sound investment that aligns with your budget.
Comparing Financing Options
When buying land, you have several financing paths to consider. Land loans typically require larger deposits than regular mortgages, often 20-30% of the purchase price. Interest rates for vacant land are usually higher because lenders view these as riskier investments.
Construction loans offer a good alternative if you plan to build soon. These loans release funds in stages as your building progresses, which helps manage cash flow. You only pay interest on the amounts drawn down during construction.
Some lenders offer package deals that combine land purchase and construction financing, potentially saving you on fees and paperwork.
Regular mortgage options may be available for serviced land in established areas, particularly if you plan to build within a specific timeframe.
Always compare loan terms, interest rates, and fees from multiple lenders to find the best option for your circumstances.
Budget Planning for First Home Buyers and Investors
Creating a realistic budget is crucial before purchasing land. First home buyers should factor in all costs beyond the land price itself.
Hidden costs to consider:
- Stamp duty and transfer fees
- Soil and contour testing
- Site preparation expenses
- Council and connection fees
- Legal considerations and conveyancing costs
First home buyers in Australia may qualify for government grants such as the First Home Owners Grant and stamp duty concessions, which can significantly reduce initial costs.
For investors, consider the land’s long-term potential. Factor in holding costs while the land remains vacant, including council rates, land tax, and loan repayments.
Your budget should include a buffer of 10-15% for unexpected expenses. This extra cushion can save you from financial stress if surprises arise during the land purchase or future building process.
Considering Purchasing a Block of Land? Contact WOW Homes!
Buying a block of land is an exciting step, but factors like zoning, soil quality, and infrastructure can impact your build. Careful planning and understanding all costs—from site preparation to council requirements—are essential to avoid unexpected expenses. At WOW Homes, we help buyers navigate the process with expert guidance, from choosing the right block to building your dream home.
Contact us today to get started!