Common issues to be aware of when buying land

If you don’t conduct proper due diligence upfront, it could spell the end of your dream to build a new home or even a development project for investment purposes. Property buyers should investigate certain aspects of the land prior to purchase to ensure that the site is suitable.

When considering a development, don't get caught by one of these five common and costly problem associated with potential development sites;

Covenant 

A covenant restricts an owner's right to do what they wish with the land. It is often concerned with building standards, or prohibits the use of land for some purposes.

For instance, if you purchase a block of land, there could be a covenant that requires you to build a dwelling on that land within 12 months of settlement.

Easement

Find out prior to purchase if the property is subject to any easements, which give a party the right to use part of a neighbour’s land for a particular purpose. Examples include an easement for drainage, or a right of carriageway.

Research

Speak to your local council about any plans that you have for the property, and assess the constraints and opportunities – such as the likelihood of objection, either by the council, other government authorities or neighbours.

Also, try and find out whether there are any approved or proposed developments in the neighbourhood that might affect your plans for the property.

Trees

A tree preservation order could apply to the land. In essence, this means that unless you have written permission from the local council, you are not permitted to cut a tree down or cut branches off trees, if the tree is greater than a certain height or wider than a certain width.

Different Councils have different rules. Think about the cost of removing trees where they hinder your building plans or threaten to damage buildings or fences if they fall.

Land size

If you are buying a property with plans to eventually subdivide, you’ll need to locate a property that is situated on a large block of land.

Depending on your plans, you might want to look for a property that is situated towards the front or the back of the block, to allow for easy subdivision and construction on the remaining land. However, if your goal is to knock down the existing home and construct two brand new properties – such as a duplex – then the exact location of the dwelling is less of a concern.

This is why it is important to have a clear plan from the outset. Also, a house with a wide street frontage is ideal, as it lends itself to subdividing and redevelopment more readily than a property with a small

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This article via YIP does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.