If you are looking to buy a new home, you may be considering building rather than buying an established property. Alternatively, you may be looking to invest in real estate by purchasing a vacant block of land.
For tax purposes and finance institutions, a vacant block of land is officially defined as 'land void of any structures (including built or demolished)'.
Buying a block to build on, particularly in a greenfield type of development, enables flexibility in location, land size, optimal orientation, proximity to amenities and can be a great step into the property market and a potentially low entry price. It is worthwhile looking into the land transfer or stamp tax which is payable on a land purchase and calculated based on the actual land value or the purchase price, whichever one is the greater amount.
Some developments and loan terms will require you to build on your vacant land within a designated period, so it pays to make sure you have all this information before you enter into a contract of sale.
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