Considering buying a piece of land ~ lifestyle blocks

Discussion in 'Property Experts' started by Bahayan, 26th Apr, 2021.

Join Australia's most dynamic and respected property investment community
  1. Bahayan

    Bahayan Member

    Joined:
    3rd Mar, 2021
    Posts:
    5
    Location:
    Sydney
    Would like to know pros and cons of buying an RU2 blocks and costs of outgoings per year. Do I get a land title?
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Yes you get land title - or you wont own it. Ru2 are rural use zoned land and the land use is limited. You cant for example turn it into a heliport, busienss warehouse truck workshop etc . Your local council LEP will indicate some limits. Property constructed must fit needs of rural use, conserve vegetation and be propertly sited. Subdivision may be problematic. Costs will depend on size and council. Fencing, roads and gates, dams, water etc are likely maintenance cost. Also consider land tax.

    Lenders may have specific limits on LVR

    Discuss with the council. RU2 is defined eg Cessnock : CESSNOCK LOCAL ENVIRONMENTAL PLAN 2011 - REG Zone RU2 Rural Landscape
     
  3. Bahayan

    Bahayan Member

    Joined:
    3rd Mar, 2021
    Posts:
    5
    Location:
    Sydney
    Thank you, Paul.
     
  4. Bahayan

    Bahayan Member

    Joined:
    3rd Mar, 2021
    Posts:
    5
    Location:
    Sydney
    One of the questions also come to mind is that the blocks are part of a 40has. as a minimum land size, how could the owner subdivide it into smaller sizes (random sizes eg 800/950/1000sqm) and sell, council must have allowed it?