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7 Things About How Deep Do I Own My Land Nz | Specialists in Residential Construction Lending
- On a flat site in a major new sub-division, where the land developer supplies the builder with the sub-division’s geotech report, it is relatively easy for the builder to price the ground/earthworks. Compare this to a sub-divided site on someone’s back section where the slope across the section is a couple of metres or more. With the latter, it is likely that major earthworks and retaining walls will be required. This can add tens of thousands of dollars to your build cost. In all cases, do your homework. - Source: Internet
- Include a “sunset” clause in the Sale and Purchase Agreement for the land purchase. This clause is for the sole benefit of the purchaser. If the title is not produced by a defined future date, the purchaser retains the right to cancel the Sale and Purchase Agreement. If there are significant delays, it is important that you have the right to cancel the agreement and move forward with another project. - Source: Internet
- You and your lawyer need to complete your due diligence on the land before committing to the purchase. There may be unpaid levies by the land developer, such as Growth Infrastructure levies, Water Care levies etc. Your lawyer is key in assisting you research these aspects. - Source: Internet
- “A buyer should be clear as to the scope of that flexibility. For example, the purchase price should decrease if less land is available than was anticipated.” - Source: Internet
- Buying land in a renowned sub-division by a respected developer can offer great benefits. The sections in most instances tend to be serviced sites (i.e.) power, water and in some cases phone tend to be connected already, saving you these additional costs. - Source: Internet
- You will need to ensure you have sufficient funds to purchase your section and that you also have sufficient funds to build. You will need to pay between 20-50% of the land price to settle on the land. If your deposit does not meet this criteria you may still be able to build, but you need your building contract to coincide with the land settlement. - Source: Internet
- The answer is yes. If you already own your section, then your equity (the difference between your mortgage and the value of that land) becomes part of your deposit. If you only have equity and no cash to pay a deposit to your builder, don’t worry. NewBuild will help by ensuring some of your equity is transferred to a cash deposit so you can make the required build deposit. - Source: Internet
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