Lot 40 Government Road, Altona, Vic 3018
- $35,000.00
Why so cheap? It's all in the use.
According to the listing, this block is designated Special Use Unserviced Land, industrial zoned (not residential).
Special Use land is land set aside for a specific purpose, eg. to implement a State/Local Planning Policy Framework, to provide for the use and development of the land in a municipality. The purposes and land use requirements are set out in a schedule to the zone.
See http://www.dse.vic.gov.au/CA256F310024B628/0/0BF7524E44B3827ECA2573940007BD13/$File/Chapter+1+Planning+Schemes.pdf
Unserviced land is land where critical infrastructure such as sewer, water, roads, drainage, electricity, gas and telecommunications have not been planned and installed. See http://www.geelongcity.vic.gov.au/armstrongcreek/infrastructure/
Industrial areas can be zoned 1 (most common), 2 or 3.
Borrowing to buy land - Industrial vs Commercial
How much the bank will lend would depend inter alia on the purposes and nature of the land.
For instance, ME Bank offers a maximum LVR (loan to value ratio) of 65% for vacant unserviced land that is intended for commercial purposes, compared with 72% for vacant fully serviced land.
With residential land, you get a better deal: 70% for vacant unserviced and 80% for vacant fully serviced.
See http://www.membersequity.com.au/business/business_finance_solutions/eligible_securities.html
If you were shopping for a block to build your new house on, $35,000 would represent maybe a 20% deposit.
This 310 sq m block in The Heartlands, the newest estate in Tarneit (and so still relatively affordable), is under contract at $168,000.
http://www.realestate.com.au/property-residential+land-vic-tarneit-2765062
What a difference zoning makes.
No comments:
Post a Comment