Property

Franco Cozzo · 18-09-2010, 08:45 PM

Hey guys, I've been looking at real estate websites and I'm curious as to all these properties under $15,000 up for sale, why would they be so cheap? Some advertised as "building blocks".

I'd like a property but only if I could build a house and live in it.

atec77 · 18-09-2010, 08:47 PM

Quote:

Originally Posted by Big Damo

Hey guys, I've been looking at real estate websites and I'm curious as to all these properties under $15,000 up for sale, why would they be so cheap? Some advertised as "building blocks".

I'd like a property but only if I could build a house and live in it.

google map the locations and you have your answer

Franco Cozzo · 18-09-2010, 08:48 PM

Quote:

Originally Posted by atec77

google map the locations and you have your answer

Thats not neccessarily a bad thing though right? As long as its within 2 hours of a decent sized town, which they probably arent.

gtfpv · 18-09-2010, 08:50 PM

there could be hundreds of reasons for the price . the question is too hard to answer . if you reaaly want land and you know nothing about it . employ a conveyencer before you place a deposit . for $500 or so they find out everything in legal documentation and can answer and advise any questions and concerns about the property. never buy a property without doing this 1st .

Franco Cozzo · 18-09-2010, 08:54 PM

Quote:

Originally Posted by gtfpv

there could be hundreds of reasons for the price . the question is too hard to answer . if you reaaly want land and you know nothing about it . employ a conveyencer before you place a deposit . for $500 or so they find out everything in legal documentation and can answer and advise any questions and concerns about the property. never buy a property without doing this 1st .

What about contacting the agent? Would they be able to fill me in on the details, or are they the real estate equivilent to a used car salesman? Just to find out the basics, I'm not interested in buying at the moment, but it would be a good start in life to get a property now that I could build on in say 10 years time.

Jim Goose · 18-09-2010, 08:57 PM

Remember an agents job is to sell property... he is only interested in a sale...
Even if your looking, some will pester you, call you etc etc...

BPXR6T · 18-09-2010, 09:02 PM

A lot of blocks can't be built on and are usually advertised as "lifestyle" blocks. The rules have changed recently and I'm not 100% up to speed but it was anything under 40ac couldn't be built on, someone told me the other day its now anything under 200ac. Luckily my place is zoned rural residential.

Franco Cozzo · 18-09-2010, 09:08 PM

Here is the description of one I looked at:

Quote:

Ideal weekend retreat to escape the city hustle & bustle or possible a site to build your dream home (STCA) nestled close to the picturesque Pyrenees Ranges. Appreciate the peace & quite on the nearly 1 ½ acres partly elevated with view to the surrounding hills & power runs next to the block. Set close to the popular Wimmera River & conveniently situated between the Pyrenees & Grampians ranges.

STCA?

Quote:

What does STCA mean?

STCA stands for “Subject to Council Approval” and is typically used to describe the subdivision / development potential of a property.

For example:

* “Multi-unit site (STCA)”
* “Dual occupancy site STCA”
* “Development site (STCA)”

Unfortunately (in Victoria anyway), all that the term STCA can legally refer to is exactly that: potential.

It is simply sales copy used by Real Estate agents to add perceived value to a property.

The Real Estate Agent only needs to have an opinion that the property is suitable for development (after all, final say rests with Council).

Remember that the Real Estate Agent’s job is to sell the property – on behalf of the vendor (& not to offer you qualified development advice).

That said, the property may very well be suitable for development – there is just no level of recourse with the Real Estate Agent if its not.

That doesn't sound promising.

gtfpv · 18-09-2010, 09:14 PM

Quote:

Originally Posted by Big Damo

What about contacting the agent? Would they be able to fill me in on the details, or are they the real estate equivilent to a used car salesman? Just to find out the basics, I'm not interested in buying at the moment, but it would be a good start in life to get a property now that I could build on in say 10 years time.

i'm pretty sure an agent has to by law disclose all relevant info . however a conveyencer/solicitor get the proof . and proof is what stands in law . if you tell an agent up front you want detais on building /water etc and let him know you wont buy before a conveyencer checks it out . its in his best interest to tell you . but that aint enough always employ a proffessional on buying . they find out things lick earth type below the block , mining in the area, cavities or underground caves under the block , correct size , legal deed of owner /seller etc and much much more .

Cashie · 18-09-2010, 09:34 PM

I would contact the council and ask them if you are possible to be granted approval...

V8 Man · 18-09-2010, 09:46 PM

Also worth checking about the availability of services (water/gas/phone/power/sewer/etc), this info should be listed on the section 32, but make enquiries about the potential connection costs. I have heard of huge connection costs for power/phone in some far flung areas (over $100k, and no, I'm not exaggerating).

arby · 18-09-2010, 09:47 PM

Have a look at the property at http://services.land.vic.gov.au/maps/pmo.jsp you will be able to see what it is zoned, whether its proned to flood, what overlays etc.

BPXR6T · 18-09-2010, 09:53 PM

Quote:

Originally Posted by V8 Man

Also worth checking about the availability of services (water/gas/phone/power/sewer/etc), this info should be listed on the section 32, but make enquiries about the potential connection costs. I have heard of huge connection costs for power/phone in some far flung areas (over $100k, and no, I'm not exaggerating).

As an example, my parents property the nearest pole was 500m away. But because they weren't permitted to cut down trees they had to take a more obscure route. The connection fee was over $60,000. At the time this qualified them for the solar rebate and they're now on solar.

AussieAV · 19-09-2010, 12:29 AM

Big Damo, real estate advertisements are often the epitome of "positive spin". They have their own language and must be carefully deciphered.

Here is one possible translation of the ad you quoted.

Quote:

Ideal weekend retreat to escape the city hustle & bustle

Is hundreds of miles away from anything. Nearest water is a three kilometre hike.

Quote:

or possible a site to build your dream home (STCA)

The only likely place you will get council approval is in your dreams.

Quote:

nestled close to the picturesque Pyrenees Ranges.

Located in dangerous landslide hazard zone at base of a mountain

Quote:

Appreciate the peace & quite

No one will hear your screams

Quote:

on the nearly 1 ½ acres partly elevated

Block is on a slope so steep that a mountain goat would lose its footing

Quote:

with view to the surrounding hills & power runs next to the block.

And thats the closest you'll ever get to actually having electricity, a view of the power lines next to your block.

Quote:

Set close to the popular Wimmera River & conveniently situated between the Pyrenees & Grampians ranges.

Actually located smack dab in the middle of an annual flood plain. Make sure you keep a scuba tank handy.

In all seriousness though, if your interested, go check it out. If its too far away to check out, you'll know why its cheap.

Edit: PS I'm in WA, and know nothing about Vic locations

naddis01 · 19-09-2010, 08:32 AM

Quote:

Originally Posted by BPXR6T

As an example, my parents property the nearest pole was 500m away. But because they weren't permitted to cut down trees they had to take a more obscure route. The connection fee was over $60,000. At the time this qualified them for the solar rebate and they're now on solar.

When we sunk an irrigation bore on our property it was within 200m of the power line. However we could not connect to it because it could not supply enough power even though it had been upgraded recently.

So they wanted us to either upgrade line or build a new line from elsewhere. The cost - $450,000. Needless to say we don't have an electric bore as that buys alot of diesel.

However, to the OP, it may just be cheap because it is in a rural area. However it is still advisable to do you research. There are places out here that are that cheap with nothing wrong with them as it is just their location. The question really is would you see yourself living there? There is no point buying a block just because it is cheap if it is of no use to you.

Jim Goose · 19-09-2010, 09:17 AM

If its too far out of town (2hrs) then you need to consider travelling to and from work every day as well. 2hrs turns into 3hrs in peak hour.
Consider the fuel burn, wear and tear on your car etc....
Is there public transport nearby?

Try and stick within a comfortable range of your place of work and take into consideration peak hour traffic etc.. otherwise by the time you get to work your very argo from road rage!!! not to mention when you get home it will be late in the evening with little time to do anything, unless you stay up late everynite etc...

Check that there is not a covenent (Not sure if that is the correct word or spelling)
on the block. Sometimes these cheap blocks have funny requirements that you must build within 12months... your not allowed to use a "donga"... live in your shed... or live in a caravan... etc etc....

Franco Cozzo · 19-09-2010, 11:01 AM

Personally, I wouldn't mind living in a rural area, I do now but its only about 60km out from Melbourne but I'd like to go out further in a place with not many people or neighbours, the town I live in at the moment has just under 5000 people, compared to 2000 when we first moved here in 1994 and its too "busy" for me.

I'd obviously change my place of work when I got the house built on the property and its ready to "live in" (all that council crap, covenants, permits, water, power sorted out) and I'd be happy with up to 2 hour each way commute to work, it'd be all freeway driving like what I do now, I do a 100km round trip every day to get to work and back which is an easy drive, obviously 2 hours would be a fair few more kilometers but oh well.

I'd only buy IF I could obtain a permit to build a house and live in it perminently, and power, water and phone was at a reasonable price to get connected (or go solar?).

I'm reading all posts so keep the advice coming guys, thanks much.

Mr Hardware · 19-09-2010, 11:27 AM

Well said AussieAV

Quote:

worth checking about the availability of services (water/gas/phone/power/sewer/etc),

This is the most important part, apart from knowing whether the land is buildable either due to council regulations/land zoning/safety of the block. Just remember to build a cheap house will cost you six figures easily, even if it is a kit home.

naddis01 · 19-09-2010, 12:17 PM

What sort of work do you do Damo?

Franco Cozzo · 19-09-2010, 12:28 PM

Quote:

Originally Posted by naddis01

What sort of work do you do Damo?

At the moment I'm an apprentice auto electrician, but i only have experience and work on emergency vehicles, so I suppose thats pretty limiting.

I'll be qualified by 2014, maybe sooner if my boss lets me fast track my apprenticeship, my previous boss wouldn't.

duaned · 19-09-2010, 11:18 PM

Buy the block and put a old transportable house on it. Then you will be eligible to apply to star on "the farmer wants a wife." It does sound like the blocks are in the middle of nowhere. However, I recall discussing a similar issue with a customer that was keen on purchasing a piece of real estate at dirt cheap pricing (no pun intended).End result was that the agent simply used the ad to canvass parties that were interested in spending coin in their areas, and used this as a marketing tool. I am hoping the advert you spotted is not held in the same regard as I for-mentioned,
and it is a genuine bargain for you.

dave351cid · 19-09-2010, 11:57 PM

this looks like a nice spot.

http://www.domain.com.au/Property/Fo...did=2007614479

probably not much there as far as a town goes but if thats what you like then go for it. not sure how far it is to a bigger town but VIC is not that big so it cant be too far.

4 years ago i got a job here in Miriam Vale QLD . its only a very small town ( a bit bigger then Crowlands) about 60 km from Gladstone. i bought 4.3 acres for $75 000. now the same block would be worth around $180 000. most of the locals work in Gladstone and travel each day.

Bud Bud · 20-09-2010, 01:06 PM

Hi Big Damo, are you saying that you would be willing to drive from Ararat to Melb every day??? Could you eventfully or potentially get a job in Ararat, Stall or Ballarat? It seems a long long way out of Melb to me. I think that if you are serious about buying in a location (and cost being your main consideration) then perhaps it might be wise look at some other properties in the area first.

If you buy a block for say 20k, it will still cost you more than 150K to build and finish with the basics, even more if you need to go to enviro septic and water tanks etc. You could easily end up with a mortgage for 200 – 250k, which is not too bad considering.

But

If you buy something like this http://www.domain.com.au/Property/Fo...did=2008515057 or even this http://www.domain.com.au/Property/Fo...did=2008534536
Then you would

1) Know all your fixed costs up front
2) Gain access into the market at an affordable price (what you are trying to achieve)
3) Live in it to see if you could live in Ararat and travel to Melb (or even live in Ararat)
4) Rent it out straight away (using other peoples money) if it did not suit you to live in it now, then live in it later when it did
5) Sell it and use it as a deposit on your house of dreams later on
6) Keep it and start an investment portfolio around it.
7) And finally if you did like living in Ararat, and you did decide to build, then you could in fact still live in the first house while the second one was being built and you would be in a better position to keep an eye on the new one instead of commuting from Melb to check on the new house's progress.

Don't get me wrong, if it is acreage that you want and the land has good access to water and power sewage etc and this is living your dream then by all means, but if you are unsure then it would be wise to explore all other options as well. Either way good luck!

Bud Bud.

Racecraft · 20-09-2010, 01:17 PM

Quote:

Originally Posted by Bud Bud

Hi Big Damo, are you saying that you would be willing to drive from Ararat to Melb every day??? Could you eventfully or potentially get a job in Ararat, Stall or Ballarat? It seems a long long way out of Melb to me. I think that if you are serious about buying in a location (and cost being your main consideration) then perhaps it might be wise look at some other properties in the area first.

My advice would be similiar.

Do very basic maths.. time = money

You are on $20 p/h (guessing) at your job
2 hrs each way a day = $80 a day or $400 a week in time
Add your fuel/ wear and tear etc and the drive would be costing you a packet in time and money.. I'd look closer in for more money and put the extra coin you'd save in travel time and maintainence into a mortgage

naddis01 · 20-09-2010, 08:06 PM

Just buy our house in Darlington Point in NSW.

It will be cheaper than building anything with plenty of job opportunities in Griffith.

pottery beige · 20-09-2010, 08:19 PM

mooch off your parents as long as you can and buy something nice.... keep moochin of your parents whilst you rent that place out for a couple of years.. use equity in that place to buy another place.. keep moochin off the parents for another couple of years.............

Franco Cozzo · 20-09-2010, 08:50 PM

Quote:

Originally Posted by pottery beige

mooch off your parents as long as you can and buy something nice.... keep moochin of your parents whilst you rent that place out for a couple of years.. use equity in that place to buy another place.. keep moochin off the parents for another couple of years.............

My old workshop manager's brother in law lived with his parents until his mid 40s, then spent $2,000,000 on a farm. Workshop manager doesn't hold him in high respect but thats hilarious.

I don't mind travelling far, my uncle was doing about 250km a day, 5 days a week not too long ago for about 3 years.

Also, yes I know building a house isn't cheap and is always going to run into six figures, but if a property only costs me $30,000 out in the middle of nowhere, compared to where I live now where an equivilent sized block costs upwards of $130,000, thats a lot of extra money that could go into the house.

Remember, if I bought the block now, I wouldn't build the house for a long time yet, the idea is I'm trying to keep away from the bank as much as possible and if i have to, borrow the minumum possible I need.

I'm not going too bad living with my parents, and holding down two jobs (looking to make that three soon). I've managed to save about $10,000 this year so far.

naddis01 · 20-09-2010, 09:05 PM

Don't forget the ongoing costs of owning a block even if you don't do anything with it. You will be up for rates every year - say $750pa or $7500 over ten years. Then your money is locked up in that property for that time (I am assuming little expected growth in value if its in the middle of no where). So in that time you will miss out on atleast another $5k - $7.5k in interest if you had that money in the bank. Suddenly your bargain $30k property has cost you half that again in the ten years you have done nothing with it and has it increased 50% in value over that time?

OLDFORDNUT · 20-09-2010, 09:33 PM

STCA-subject to council approval
means( pay us first then no hope in hell) lol

**ebxr8240** · 21-09-2010, 11:45 AM

Quote:

Originally Posted by pottery beige

mooch off your parents as long as you can and buy something nice.... keep moochin of your parents whilst you rent that place out for a couple of years.. use equity in that place to buy another place.. keep moochin off the parents for another couple of years.............

Hmm I know of someone doing just that !!! Hmmm ??
Taking control of the remote is getting a little hard to ignore !!! Lol..