‘Our philosophy and thinking is centred around making you the greatest return on your investment when you buy…’
Whether you’re intending to purchase land, a development site or even an established property, it’s important that you equip yourself with the knowledge and skills to make informed decisions.
Here at Urban Greenfield, our team specialises in advising you about all things property, whether you’re buying or selling. If you’d like to learn more about the Urban Greenfield advantage, contact our team (link please) today.
Knowledge is power
Research the market thoroughly, both from a lifestyle and financial perspective. Look at the past sales history of the area; educate yourself on zoning or future zoning opportunities (proposed urban growth areas); and planned or pending infrastructure such as developments, public transportation upgrades, and retail or recreational facilities. This can add or detract value from the property in the future. Have a good handle on supply and demand ratios, and property market cycles over time. This can be a reasonable indicator of the property or suburb’s future potential. Attend multiple auctions in the area so that you understand the current market and have a realistic purchase benchmark.
Show me the money
Be cognisant of your financial position from the outset by putting in place a pre-approved loan. This way you’ll know what your repayments are upfront, and can purchase a property or site accordingly. You can also gather information about mandatory contributions such as stamp duty, land tax, council rates and strata fees to help you budget. Also consider interest rates, and how their rise and fall may affect your ability to service loans. Shop around to make sure you get the best deal. Determine your budget based on what you can repay now, rather than on the maximum you can borrow, or what you may be able to afford in the future.
If you’re purchasing a potential development site, your financial considerations may be larger and can include costs for the provisions of water, sewer, electricity and civil works. While the outlay to fund such infrastructure can be significant, there are financial alternatives available beyond traditional commercial or retail lending. Often smaller development sites can be financed using call options, joint venture deals, money partners or vendor finance. These funding methods are often a proven pathway to gain a foot in the door in property development.
Due diligence – it can make or break a property deal
Perhaps the single most important thing you can do when buying a property or development site is to conduct your due diligence. For a property, building and pest inspections are often the first that come to mind, but there are other things you may need to consider, such as obtaining information about all present and future uses of the property, notices of any zoning or environmental conditions, finding out if the property is heritage listed and whether there are any existing restrictions.
Conducting due diligence on a potential development site or considering options for redevelopment is essential. The many considerations may include zoning, land area, availability of services, notations on title, statutory intent, and building permissibility and restrictions. Conducting due diligence before you enter into a property transaction can significantly reduce your exposure to property and financial risk.
Visit often
Visit the property and the suburb multiple times and at different times of the day. This way you can get a good feel for traffic and street activity at various times. You may also want to scope out access to public transport and local shopping centres, and have a meal at a local pub or cafe to see what the lifestyle might be like if you’re planning to live there.
If it’s a residential development site, you need to allow for a variety of housing types to meet current and future demand requirements for residents. Also, scope out existing and future plans for local amenities, and determine if these amenities will compliment and add value to your development.
Visiting the site frequently and conducting numerous site inspections can reveal insights into connectivity to existing services and infrastructure such as sewer, water, electricity and telecommunications networks.
If you’d like the experts in your corner, Urban Greenfield has the experience, knowledge and expertise to guide you through your most important property decisions. We can provide you with a range of strategies to assist you in realising your property goals.