Tag Archives: Victoria

4 Smart Tips for Buying Residential Land in Victoria

Couple Looking at Their New Home

Couple Looking at Their New HomeIn Victoria, as with the rest of Australia, buying residential land isn’t the best real estate investment. More people are interested in detached properties than vacant pieces of land. With relatively weak demand, they’re less likely to increase in value over time.

However, purchasing land is a sound strategy to gain a foothold in a particular property market. To choose the right piece of real estate to buy, follow these tips.

1. Keep it small

Block size affects the risk factor of your purchase. Generally, lenders have high loan-to-value ratio maximums when it comes to small pieces of land. The bigger the block, the smaller percentage of the property value you can borrow. This has a direct impact on the size of your required deposit.

2. Look at the future

Pay attention to the impending developments in the area to buy a property that’s likely to appreciate fast even without any structure. Many pieces of land for sale near Craigieburn and Donnybrook, like Donnybrae, for instance, are becoming more promising because of the future schools, business hubs, and shopping centres expected to rise close to those communities.

3. Think about services

Put a premium on service connectivity and access. Buying residential land that can be easily connected to services, such as water, electricity and drainage, can help decrease your building costs. Lenders also assess the property’s accessibility. If it’s hard to reach the land with a standard vehicle, your loan application might be denied.

4. Know when you want to build

Vacant land loans don’t require you to construct anything on the property right away, but your lack of intention to build in the near future might cost you your application. For as long as it remains vacant, the residential land stays as high-risk security. Express your plans to develop it to secure the financing you need to buy it.

Most lenders are consecutive when loaning money for vacant land purchases. But if you choose the right property, you can ease the mind of your prospective lender to approve your loan request.