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Our top 6 pieces of property information to check before buying

Posted 4 October, 2018

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When you buy a property, you also buy the land too and the value of the property is generally in the land more than the actual building itself, so how do you find out about the land you are investing in?

The stipulations placed on parcels of land have the most effect on value in cases where you’re looking to build on that block or make renovations. Whether you’re looking to knock down and rebuild or to make additions on to the existing property, the property information is valuable knowledge before taking the plunge and buying.

30 or 40 years ago, it was hard to find information on a parcel of land – now it’s all at your fingertips. This is where your grand plans may come unstuck so it is always a good idea to learn as much as you can about the property before purchasing.

The Melbourne market has been so competitive the past 5 years that buyers have not been able to take the time to consider these value affecting factors. Not that the markets cooled down a bit, the buyer has more choice when purchasing. Remember as well, what may make a property less desirable to an investor or developer that is looking to build, may be perfect to make into your new family home.

These are our top 6 factors that could affect the value of a property for the potential buyer:

1. Planning Zones and Overlays
Likely the most important factor to consider is the planning zone the property falls into as this is going to affect future development in the area as well as any plans you have. There are many planning zones for example, neighbourhood residential zone and residential growth zone. The different zones can make property more valuable to some and less valuable to others.

Say you were looking for a family home, you would prefer to buy in a neighbourhood residential zone, knowing that a block of apartments can’t be built next to you tomorrow. On the other hand, if you’re a developer, it would be desirable to purchase in a growth zone.

Planning overlays are also implemented by in the local councils planning scheme. The overlays will show any heritage and character requirements that need to be considered and landscape preservation requirements as well as other information. The likelihood of requiring a planning permit will increase if overlays apply to the property.

You should consider this as a future cost factor associated with that block as the planning permit process can be lengthy and sometimes expensive. Remember that planning permits may be required for smaller works as well such as decking’s or pergolas.

When you order property information through PSI, we’ll provide you a free property report that includes the planning zone and overlays associated with that property.
2. Easements
If the plan is to build or extend it’s important to be aware of any easements that may be beneath the ground. In most cases, you won’t be allowed to build over an easement because it belongs to council or a service authority. You can apply for an exemption where the asset belongs to council, however they would prefer to keep access to the easement in most cases so they can continue to maintain their services.

To view the easements you can order the Land Title which shows the location of easements. They’re usually along the property boundary but they can be anywhere.

Internal sewer pipes already on the property are important to acknowledge, this includes the existing pipes for the house including water from the sink and sewage from toilets. Is there existing pipes or will you need to construct pipes to connect to the mains? You can see these on the Property Sewerage Plan. This can effect cost and also limits what you can build or add onto the home.
3. Flood Prone
In the late 1970’s flood mapping was introduced as a result of past flooding’s. The flooding overlay may have implications to the land. Depending on where the water needs to travel, you may not be able to build fully enclosed structures across the whole block, this can mean constructing a carport as opposed to a garage for example, to allow the water to flow through.

If you are thinking of subdividing the flood zone may encroach on the block and reduce the amount of available and useable land. You can find out if your property is flood prone by ordering Building Information 51(2). If you decide to build, you may then need to get a flood certificate to consent to the proposed construction.
4. Bushfire Prone
The building code was amended in 2010 to ensure any new houses were built to have greater fire resistance. Purchasing in a bushfire prone area can add to costs over time, so it is something to consider when purchasing a new home. You can conduct a Bushfire Search to find out if the property is in a Bushfire Attack Level (BAL) zone and if yes, a Bushfire Report can measure the BAL rating.

Being in bushfire zones, particularly with high ratings can increase insurance premiums due to high re-build costs. Homes built in BAL zones can cost up from $16,000 - $277,000 extra to re-build according to AAMI insurance.

For more information about bushfire areas, check out our post Bushfire Attack Levels: how do they effect the building design process.
5. Title Restrictions
Looking at the Land Title will help to confirm boundaries and any covenants or other restrictions that are on the property. This can affect any changes that you wish to make to your property including: style and materials (neighbourhood Guidelines set out by a developer), building envelopes (where you can and can’t build on a block).

For buying a portion of a property (strata title) like apartments or townhouses, the title will help to understand your responsibilities like paying body corporate fees.
6. Internet Providers
We live in such a connected world and internet speed and providers is something that seems to really effect people’s lives. It’s something that we always hear getting complained about by our friends and families. Many properties are still restricted to Telstra as a sole provider of internet so there is no competition for internet service providers. If you’re in an NBN area, some of the earlier connections where fibre is ran directly into the house are deemed to be better.

If internet is important to you and your family, you may want to research what internet is available at that address, how far the address is from the closest internet exchange and the type of NBN access.

They're our big ones in terms of information that’s readily available for you to access about the property. You can go view samples on our Products section and if you need any advice on what information to order, please contact our customer service team for guidance.