Pro's and Con's of holding bush acreage

Discussion in 'What to buy' started by See Change, 11th Jan, 2021.

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  1. See Change

    See Change Well-Known Member

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    We're looking at buying a acreage block with a view to land banking . Outside the financial aspects ( which we think hold up ) we haven't had experience holding a rural block .

    It's not for farming , Currently scrub / bush on the edge of a coastal town and the land is adjacent to current residential land . We would be building on it and then renting it out .

    Area is somewhere that we've noticed is prone to bush-fires.

    One concern we have is re clearing of the land , maintaining it in a safe state . Can the local council put in place orders to ensure the lands is appropriately maintained ?

    Any other things we need to be aware of ?

    Cliff
     
    See Change, 11th Jan, 2021
    #1
  2. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    You can add robust SDA to it to help with holding costs, in many locations anyway.

    On a general note, Councils have been increasingly difficult with overlays in relation to vegetation and bushfire in recent years. If the trees/bush are actually then it's not a problem. But we used to do some where the trees/bush didn't exist but the property was caught in the overlay with the surrounding properties. If you could show there was nothing decent there you could still develop. Lots of times now we get its on the map so computer says no....
     
    RPI, 12th Jan, 2021
    #2
  3. 30215

    30215 Well-Known Member

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    30215, 17th Jan, 2021
    #3
  4. Paul@PAS

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

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    No tax deductibility until completed and available for rental.
    GST on sale (?) or is this a keep ?

    Land banking but building on its - is that land banking ?
    Present zoning and use ? Adjacency can allow approval on edges of zoned areas. Some councils are strict.
    Dont assume land clearing and do some homework. What is likely to be approved to clear may be far less than you want.
    Disposal of cleared timber and brush - Dont assume you can burn it. (Tip Offer RFS training)
    Services eg water, sewer, power, phone ? Access for power can be costly and involve private poles and wires.
    Land suitability eg site foundations and soil
    May need environmental impact reports - Very costly sometimes and will consider all flora and fauna that may use the land as a habitat.
    Cost will need to consider bushfire regs eg setbacks, construction materials etc. eg may need to use more steel v timber. No timber decks etc
     
    Paul@PAS, 19th Jan, 2021
    #4