PERTH & MANDURAH 08 9367 4222

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shutterstock_14779183Buying an empty block is much easier than purchasing a home, but this does not mean that it is simple by any means. It is still a major decision. The block of land you buy will have a huge impact on the kind of property that you are going to build on it.

Here are the top things to consider when buying an empty block to build on:

1.     Location. This is a priority not only in buying a home but in land acquisition as well. Regardless of whether you plan to use the land for your own home or develop it for wealth creation through an investment property, it should be in a good location.

‘Good Location’ can mean different things to different people however, so make sure you are clear on your intended use for the block and, if it is intended as an investment property, your intended renter/buyer. For example, if you are hoping to sell/rent to a young family then ensuring the block is on a quiet street close to parks and schools may be the priority. Alternatively, if you are hoping to sell/rent to young singles or business people then a block on a main thoroughfare that is close to public transport and nightlife may be what makes it a ‘good location’.

2.     Size, shape, and orientation of the block. In most cases, you already have a plan on the type of home that you want to build before actually finding the land to build it on. In this case, make sure that the block is big enough for your plan.

The shape is another thing to consider. For instance, long blocks will enable you to have large backyard and garden spaces while wide blocks will allow you to have an imposing street presence.

When it comes to orientation, the block’s exposure to sun, rain, and wind will affect the property that you want to build. Having a properly orientated home will also be useful in energy efficiency further down the track and reducing household bills. Generally in Perth, the most in-demand blocks are those with a north-south alignment and a backyard that faces north.

3.     Neighbourhood. Take a look at the homes and/or properties surrounding the block. It is important to be near amenities, establishments, schools, and public transport. Is it close to where you work? Will the property you plan to build fit in with the neighbourhood? Think about the future. If you are planning to live there for a long period of time, will the neighbourhood meet your needs and preferences?

4.     Services. Do not assume that the block you’re planning to buy has all the services that you need. This may not be the case even in established locations. Check if there is town water, sewerage, and internet connection. Of course, service connection will increase your expenses.

There are other things to consider when buying an empty block of land, and as you delve into the process of purchasing land, you’ll realise that it goes beyond actually finding the block that you want. To ensure that you are in the right direction, seek professional advice.

Once you have chosen an empty block, seek the advice of a mortgage broker to assist you in securing the finance for your block. They can help you gain a better understanding of what land purchase entails and plan ahead for the finance to build on your property as well.