LAND PURCHASE COSTS

As a general guide these are the basic costs you can expect when buying land.

BUYING LAND

When choosing a block of land there are a number of factors to take into consideration when organising your budget. For example a steep building site will be more expensive to build on than a flat site. Other extra costs may include having the Land Surveyed, Access Roads, Driveways, Water Tanks, Septic System, Power, Phone, Dams etc. If you find a block of land you’re happy with but are unsure about any of the above items, we’re happy to visit the site with you to assess the situation and provide advice free of charge.

Also remember that the price presented by an agent will not include Stamp Duty. Stamp Duty is a standard government charge added to every sale and is calculated at a variable rate from 1.3% up to 5% of the cost.

BUILDING ENVELOPE & ZONING

Many blocks of land (large and small) will have a specific area allocated to building so it may not be possible to build where you like. It is also essential to check the zoning of the land to ensure that your ideas are permissible on the land that you wish to purchase.

COST OF LAND: 

Dealing with an agent the price will include the agents fee to the seller. There are no agent fees to the buyer. We provide a free on site property assessment service to help with your decision regarding building issues on your chosen block.

STAMP DUTY ON LAND PURCHASE:

This is a standard government charge based on a sliding scale relative to the cost of the land and is payable within three months of contract.

Check the NSW Government Website for details

SITE COSTS

Depending on the land you purchase and the design configuration you choose you may also encounter some or all of the following costs.

1. Potential Knockdown.

Depending on size and location allow $15,000 – $20,000

2. Excavation.

If your build site is relatively flat the fee will be minimal but if you’re building on a steep or uneven block excavation can become expensive. Retaining walls and drainage works may also need to be considered.

3. Driveways & Access Roads.

If you choose to build on an area not serviced by an existing road or driveway it will be necessary to create new services. The majority of driveway expenses are machine hire, road base material purchase and sealing of the driveway if required. The sub base for the driveway is usually placed before the building work starts on the house, if the driveway is to be sealed this is usually done at the end of the project except on very steep sites where it may be required for adequate access.

4. Power.

Not only should you check that power is available to the site but that the power available is sufficient for your needs. (It is a good idea to do this before you purchase the land)

The Electricity Supply available in rural area’s is usually limited. An assessment should be carried out by a Level 3 ASP www.powercountry.com.au prior to an ‘Application for Connection of Load’ being submitted to Integral Energy by the Electrical Contractor. Minimisation of major load items such as Air Conditioning and the use of Gas Stoves, Gas Ovens, Gas Heating and Gas Hot Water Systems will decrease the Electrical Maximum Demand significantly. This will in turn minimise the maximum load calculations that are required to be submitted with the ‘Application for Connection of load’.

This minimisation to an advised load figure “may” allow connection to the existing Network without upgrades (potentially saving you a lot of money because upgrades to transformers and other infrastructure can be very expensive).

If a power upgrade is a possibility then you may have to pay for an “Electrical Supply Report” and somewhere in the process you will probably have to complete an “Application for Connection of Load”.

These days Solar Power is becoming a cost effective option and throughly worth investigating.

5. Phone Internet.

Check if a phone line exists to the boundary. If so Telstra will provide the cabling into your build site and the first point free providing you have dug the trench. Normally the phone line is laid in the same trench as the power cables. Internet is available through the phone line but if high speed ADSL or cable connection is required it will be necessary to establish whether it is available through the local exchange.

In our Build Zone, wireless NBN is the most likely option.

6. Water.

If town water is unavailable on your block you’ll need to be responsible for your own water supply. The most preferred option is the installation of water tanks, the cost of water tanks can vary greatly depending on the product, size and material chosen. For example a 140,000 litre in-ground concrete tank costs approximately $40,000 installed plus a good quality water pump for around $1200.

7. Dams.

You may wish to include a dam on your site for either aesthetic or practical purposes. Your block would need to be assessed by an earth moving contractor to assess a suitable position on the block and whether the soil is able to hold water.

8. Sewage Treatment System.

If your property is not serviced by town sewer then you will need to be responsible for your own effluent disposal system. There are numerous types of systems available – an aerated system with in ground tanks and sub surface irrigation will start in the vicinity of $12,000 for an average 3 bedroom house. Project management is vitally important in this situation as there are many rules that need to be adhered to.

9. Fencing.

It’s not essential to fence a property but if you or your neighbours are running animals you’ll need to check that fencing is in place and of the appropriate quality. This is a difficult area to put a figure on but fencing a large property can add up to a substantial figure.

10. Outdoor Accessories.

Outbuildings, pools, outdoor living areas, BBQ, outdoor kitchen, landscaping, and any other outdoor add on will need to be added to the chosen home plan configuration and quoted as separate items. All pools require a BASIX and a separate DA lodged with council and in some cases there may also be drafting fees involved.

We’re happy to assist with the co-ordination of your project if you choose to engage us as your Project Manager and Builder.

PLANNING COSTS

1. Survey.

You will need a survey of your block of land, if you wish to see your house accurately sited on your block of land in 3D then this survey needs to be in digital form. (We will require it in both PDF & DWG format)

2. Geotec.

A Geotechnical report is effectively a report on the soil make up of your block of land and is usually required for 2 reasons.

1. For structural engineering.

2. For effluent management (if the land is not serviced by council sewer)

3. Flood Study.

A flood study may be required by council if your block of land lies in a low lying area

4. Bushfire Protection Assessment.

Most councils have facilities on their websites to check if your block of land falls into a fire affected zone. If it does then you will need a “Bushfire Protection Assessment”. This report will be submitted with your D.A. and will recommend a ‘Fire Rating’, the higher the rating the more special requirements that will be placed on your building project, these will increase the cost of building your house.

5. BASIX Report.

A BASIX Report is a report that assesses both the energy and water consumption of your proposed building project. A minimum requirement must be achieved in both areas. Despite the fact that this may appear to introduce some restrictions on design and materials it is a direct reflection of your on going “running costs”. This report will be submitted with your D.A.

6. Landscape Plan.

Some councils will require a landscape plan to be lodged with development application drawings, (Check the subdivision requirements in your land sale contract) or you may wish to have a landscape plan drawn for your planning purposes.

7. Council D.A. Fees.

In N.S.W there are two processes through which a project passes before it is approved for building work to commence. The first of these is called a Development Application (D.A.) and is an approval process carried out by your local council. Fees vary from council to council and are related to project cost. (Sometimes if the project is a “complying development“ the D.A. process may be carried out by a private certifier)

8. C.C Fees.

The second approval process is a Construction Certificate (C.C.) and may be carried out by council or an approved certifier.

9. Long Service levy.

The long service levy is a fee payable to the Building Services Corporation and is 0.35% of project value and must be paid before the C.C can be released.