Buying a block of land in QLD – pro tips you need to know!

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Hi everybody – George Sourris, Empire Legal.

Today’s topic: Buying a block of land in QLD – pro tips you need to know!

All right – so you’ve finally saved all your pennies and you’re ready to buy a block of land to build your dream home. Maybe it’s at Park Ridge, Logan, Yarrabilba, Pallara, or even Sky Ridge on the Gold Coast. Wherever it is, you need to make sure you’re equipped with the right knowledge and tools to succeed.

With build costs skyrocketing since COVID due to material price increase, a lack of tradespeople,  and an unbelievable level of demand, you really do need to be prepared. And it all starts with land. Let’s say you found that block of dirt that looks like the one. Don’t just sign a contract to buy. There are a few things you need to do before signing the contract, or at least account for in the contract, by including a special condition.

Why do you need a soil test before buying land?

For starters, let’s make sure you get a soil test. This is a special condition that gets put into the contract and allows you a right to terminate in the event you are not satisfied with the results of the soil test. New players do not think of this one. If the ground is harder than normal, or there are rocks etc underground, this can significantly impact the cost of the build of the home.

Are there protected trees or vegetation on the block?

Councils and the state both protect vegetation, and a block can carry a vegetation protection order or a mapped habitat overlay that stops you clearing where you planned to build. Check before you buy, not after. Removing a protected tree without approval carries real penalties and it can force a redesign of the house you had already costed.

What are planning overlays and what do they cost you?

Keep in mind, this is often not attractive to the developer or seller. So the shorter your due diligence period is, the more attractive of an offer it is to the seller.

When should you get a build quote?

Before you sign, or at the very latest inside your due diligence period. A land price only tells you half the story. The build quote is what tells you whether the total stacks up, and a builder walking the block will spot slope, access and soil issues that a contract will not.

Why do site costs matter so much on vacant land?

My cousin bought a block of land that backs onto the forest in the Blue Mountains. Due to prior fires destroying the houses on the street, the cost to build  was astronomically higher. They had to, as part of the council laws, have fireproof shutters, independent sprinkler and firefighting systems installed on the property, and even obliged to plumb in large water tanks as a firefighting tool for off-grid water. Obviously, this is to minimise the chance of the house burning down in the future, like the old house did, and all of the houses on the street for that matter. They had to pay extra for the firefighting upgrades to the house. Moral of the story – do your research.  Imagine if they had no idea about the costing, settled the land, and then found out they had to find an extra $100k, $200k to be compliant with council regulators for the build, that had not been factored into the budget.

How is finance different when you buy vacant land?

Lenders treat vacant land differently from an established home. Deposits are often higher, some lenders will not lend on land alone at all, and a construction loan draws down in stages against build milestones rather than settling in one hit. Get your finance structure confirmed for land plus construction before you commit, because approval for one is not approval for the other.

What should you check when buying land off the plan?

This allows the buyer’s bank access for the purposes of a land valuation, after the developer has given notice that the plan has registered. If it doesn’t stack up, i.e. the land value has gone down since the earlier finance approval was given, then the clause will allow the buyer to terminate. Keep in mind, the developer has to agree to this. We also have access to a local tool called PropCheck – developed by a Brisbane Town Planner, that allows us to search properties currently only in Brisbane City Council, and prepare a comprehensive report that includes town planning considerations – at no cost to you.  You can also get access to Before You Dig, a product that supplies mapping for things such as electricity lines, sewer lines, manholes, etc. Here is the link. There’s a lot of free town planning overlay tools that you can access through the local councils. However, we suggest you chat to a local town planner, as they know what they’re looking for. If you need help with recommendations, we have friends we trust in all areas surrounding property – from town planners, to flood experts, to builders. We do not receive any kickbacks from these people, we just genuinely refer them because they do a great job. We want you to win.

Can first home buyers get a concession on vacant land?

If you need the soil test or due diligence conditions, we can help you out and provide this as part of our service to our buyers. Do your research people – do not get caught out. Please. Get in touch with us so we can HELP you. We are Queensland Property Experts. We do this all day, every day. It’s obligation free. Pick up the phone, send us an email, DM, whatever you like!

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George Sourris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au.

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