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Buying rural land

Discussion in 'Development' started by sonic98, 25th Sep, 2015.

  1. sonic98

    sonic98 Member

    Joined:
    3rd Sep, 2015
    Posts:
    15
    Location:
    NSW
    I'm completely new to this side of things so if anyone can point me in the direction of information to read online that would be great.

    If one wanted to buy rural/bush acres with the view to building a house on it in future (to live in, not a cabin for a weekender) what sort of due diligence needs to be done to confirm whether you will in fact be able to build there? I get confused with the terms used on some of these listings and what they actually mean in the long term. I've read some listings that say building isn't allowed at all, and others say they have approval for a cabin or shed but why not a house?

    Examples (these are random listings, not what/where I want to buy) -

    No building entitlement -
    http://www.realestate.com.au/property-residential+land-nsw-crescent+head-200868283

    This one has a building entitlement
    http://www.realestate.com.au/property-residential+land-nsw-dorrigo-2705162

    I would be looking at land ranging anywhere from 10-100+ acres so the above are probably not the best examples.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,143
    Location:
    Canberra and Sydney
    I won't comment on the DD but keep in mind that you'll likely require a large deposit for this - banks aren't keen on high LVR for large acreages, particularly when it's a vacant block.

    Cheers

    Jamie
     
  3. sonic98

    sonic98 Member

    Joined:
    3rd Sep, 2015
    Posts:
    15
    Location:
    NSW
    Would 40% be considered a large deposit?
     
  4. sdprop

    sdprop New Member

    Joined:
    8th Jul, 2015
    Posts:
    4
    Location:
    2705
    I like the look of the Dorrigo block - beautiful area. I can help a bit but no expert either. You need to know what the local council will do with your development application. Either make an offer subject to written confirmation from council or get full development approval. Make sure you get it in writing as my boss got burnt on a subdivision due to a retirement. Also you will need a septic tank or taylex system for your sewerage. These need an acre for runoff plus they cant be to close to creeks. Once again check with council.
     
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