Buying Tips

Areas of potential risk – Buying Rural Property

By Denver Shoemark

A. identification of property - especially rural property where boundaries are not necessarily distinct.

B. Water description - what is permanent water especially in such dry times.

C. Carrying capacity or agricultural capabilities - Very reliant on Vendors assessment thus liable for relaying unreliable information.

D. Availability of power - even though power source may be close by, its availability may be effected by reluctance of the neighbour to allow access over his / her land.

E. Development potential - promotion of the property with subdivision potential without thorough knowledge of planning laws could be a trap.

F. Building entitlements - even the 149 Zoning Certificate may not say definitely.

G. Access to the property, is the Crown Road on line? Is the road a right of way or Crown Road

H. Is the property effected by an enclosed road? How much is the enclosure permit per annum?

I. Weeds - Serrated tussock, Black berry, Broom. Ask the Agent if the property has any of these on the block.

J. Rural finance. One of the biggest let downs when buying rural land. Make sure that you tell your lending institute that you are looking at buying a rural block zoned Rural 1 A. Most banks will require a deposit of approx 30–40%. Don’t waste your weekends driving around if you can’t meet the criteria, your weekends are to precious.