Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Construction - vacant land purchase

Name: Construction - vacant land purchase
Uploaded: 2019-10-07T08:41:12Z
Channel: Aaron Whybrow
Description: Aaron from Diagnostics and Finance breaks down two vacant-land purchase scenarios: buying a property with an old house to demolish, versus buying a lot…

7 Oct 2019

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Aaron from Diagnostics and Finance breaks down two vacant-land purchase scenarios: buying a property with an old house to demolish, versus buying a lot in a new estate. The first costs near land value plus demolition. The second is closer to true land value but involves deferred settlement and off-the-plan exchange considerations.

Part 2 vacant land so you found your ideal block of land and there's two types of land that you might buy. You might buy something that has an old house on it, knock it down and rebuild and that is nearly land with a little bit of extra costs associated with knocking it down. Or you've bought a block of land that's in a new estate that has a period of time until it's registered ready for you to settle on the land, choose your builder and get underway. So if you're buying something to knock down, rebuild and you're looking to get that exchanged first, that's just on nearly close to land value. And if you're buying a new estate that's obviously getting developed and all the services and everything put into it, so that is more truer of the land value. But you've got some interesting things to think about, whether it's going to settle in the future and you've got to be able to exchange on the property now as an off the plan purchase. And then you've got all the building and thinking about what you want to build on it going forward. Hey, it's Aaron from Diagnostics and Finance. Hope this helps. Bye for now.