Untitled land, which is unregistered land that is sold before being registered by the council and is frequently made available by real estate developers, is typical of new estates or fresh land releases. When purchasing unregistered land, you must enter into a Contract of Sale with a developer who will take care of development and registration on your behalf. Typically, a 10% deposit of the land’s worth is required.
In essence, the contract specifies that the developer agrees to transfer a block of land at a later date for a certain fee.
Some of the important factors to consider when purchasing unregistered land are:
THE ESTIMATED DATE OF LAND REGISTRATION
Make sure the anticipated registration date is a realistic one. These dates occasionally deviate from the initial time frame projection. This may have an impact on the cost of your building contract, the dates of your move, and your holding expenses. By examining and analysing the “sunset” date in the land contract, one can get a sense of the developer’s intended timeframe.
THE DATE YOUR NEW HOME TENDER EXPIRES
It’s crucial that your builder gives you a new home tender with a realistic expiration date that corresponds to the anticipated land registration date. For instance, you can face significant price hikes if your land doesn’t register until March of the next year but your new home tender expires in September of the current year.
BUDGETING PROCESS
Get financing pre-approval before paying your deposit if you intend to purchase unregistered land and will need a loan to do so.
It’s crucial to keep in mind that a pre-approval does not imply actual loan acceptance by a lender. Pre-approvals provide an indication of how much a lender could be willing to loan you and are subject to a number of requirements, including a property appraisal and the property’s suitability as security for the loan in accordance with the lender’s credit policy.
Based on your existing situation, a lender’s pre-approval is typically good for three months. Settlement for the purchase of unregistered land, however, may take much longer.
SITE COSTS AND SOIL CONDITIONS
It is crucial that your builder offers reasonable allowances based on prior experiences in the area because site costs and soil conditions cannot be fully assessed until after your land is registered, soil testing are finished, and a survey is completed. These things may consist of:
- Cut, fill and piering
- Reinforcing walls
- Service connections
- Correct soil classification
- Dropped edge beams
THE RIGHT AREA TO BUY
Look into the short- and long-term benefits of the place you want to live in or invest in. Select a place that meets your specific financial objectives and goals and has good growth, capital, and rental return indicators.
To obtain more info regarding finding the best investment property or a suitable development site for your specific needs and goals, arrange a free strategy session with our buyer’s advocate.
A strategy session includes the following:
- Assessment of your current situation
- Discover property investment strategy options
- Recommendations related to the right property investment strategy for your specific situation
- Confirm next steps
Call 0411 70 3682 or email to arrange a discussion.