News
Price Reply Link - 2010-08-12
Please note we are currently experiencing some problems with our price reply link. Sorry for the inconvenience.
Things to be aware of in buying a Lifestyle Block - 2010-03-17
In New Zealand there is a vast difference in rural lifestyle blocks.
We have subdivisions of complete farms with blocks ranging in all sizes from 1ha up to quite large farmlets.
Very often they are fully serviced with roads, power, telephone and fencing this of course is reflected in the price.
Many of these have a range of block sizes with the smaller blocks generally having an easier contour with more house site options. The larger blocks very often incorporate the rougher steeper ground, sometimes with bush patches, streams etc. This steeper land tends to be somewhat less stable at times and can have difficult building sites.
We then have the stand-alone type blocks, very often smaller blocks taken off productive farms with a small piece of bush or wetland, which allows the subdivision.
Very often these blocks have to make provision for a building platform as part of the requirements for subdivision.
The thing to remember in all instances is that Rural Blocks are very different to urban sections and the requirements for subdivision approval are different.
That little piece of Kiwi magic can have many hidden costs!!
In an Urban situation you have everything supplied, that is to say all roads and footpaths are installed, all services for power, water, phone, gas, sewerage etc are to the boundary and ready to be connected to. These sections are all approved as building platforms ready for a residential dwelling.
Not so in a rural situation!!
1. The Developers obligations:
The developer does not have to supply any water or sewerage and very often does not have to provide other services such as power and telephone to the boundary. They are only required to provide a letter from the service providers stating that the property can be accessed with power and telephone. The issue here is that although the property can be serviced it could be costly and the costs will very likely fall on you the purchaser.
For example the power may be 300metres away on the other side of the road, it may be the end of the line and could mean installing a new transformer, extending the line up to your site and thrusting under the road, all up a very large bill.
Very often we find we are at the end of a telecom line and when enquiries are made we have seen cases where there is no extra capacity in that line for another phone line.
2. Site conditions:
Firstly spoil type and stability become a number one concern for the local building authorities and we tend to find in most instances today, Councils require a geotechnical report on the building site before a building consent will be issued. In some instances this has already been a requirement of the subdivision and as such there may be a report already, in other cases you are in for some expense in getting a geotech report done. Even if there has been a general report done for the subdivision it may not be sufficient for a building consent in a particular location on the site. Check with Council. Geotech reports can show up ground instability, which can quickly escalate building costs and where specific designed drainage and retaining systems are needed the costs can be quite considerable.
3. L.I.M. reports: What is a LIM report?
Lim Report is short for Land Information Memorandum Report.
A Lim Report is a report obtained from your local Council. The report gives you a clear and detailed picture of the land or property that you are interested in purchasing.
The report provides the intended purchaser with current and historical information and a Lim report is usually requested prior to the purchase or the sale of a Residential or Commercial property.
The Lim report is based on the records that are held by your local Council only. Please bear in mind that there may be further information regarding the property that the Council maybe unaware of.
There is NO property inspection undertaken by the Council when a Lim report is put together.
If the Lim report comes with any aerial photographs etc this is NOT confirmation of the boundary of a property in a legal sense.
What a LIM report can cover:
· Zoning details of the property.
· Any proposed major roading works in the near future that is close to the property. This would include new roads, subdivisions etc.
· Any land features such as fills, or hazardous contaminants that the Council is aware of on the property.
· Resource consents within 25 metres of the boundaries of the property.
· The report should tell you if there has been any flooding on the property.
· It should give a general overview on the possibility of erosion, slippage or subsidence of the land.
· The report will also give you details pertaining to the Rates on the property. This section will cover the Land and Capital value, the annual Rates and the water charges. It also covers payments that have been made on the rates for the current year and what the current instalment is.
· Any other information that the Council sees as relevant to the property and to the report.
The LIM does not cover the following!
· A visit to the property by the Council.
· A report on any work undertaken that the Council has not given consent for or has any knowledge of.
· The property at the time that the report has been requested. If you have any doubts regarding the property you should employ an independent consultant for a full and comprehensive property report.
Where do I obtain a LIM report?
· Go to your local Council and they will be able to help you with what is needed. A Lim Report takes up to about 10 working days to complete.
There is a fee for compiling a Lim Report, again ask your local Council for a schedule of fees. All queries should be directed to the local Council in which the property in question is situated.
4. Resource consents: “The Resource Management Act!!
In todays world especially in a rural situation just about everything requires resource consent. There are maximum amounts of soil you can move without resource consent, there are minimum distances from boundaries and roads and any variation from these again requires resource consent. These road boundary distances are considerably increased if it is a main highway or a secondary road linking two main highways. “Check with your local Council and Town Planning Dept regarding specific rules and regulations”
5. Costs of services:
What are the costs involved in all the services, waste water ie sewerage system, storm water run off, water supply which is very often tanks and pump system using the rain water which still has to have a designed and controlled run off. If there is not an existing crossing giving access to the site there are Council consents with fees required plus the actual installation costs for a new crossing. You then have your site excavation and driveway costs complete with base course and metal surfacing.
As a rule of thumb we suggest PC figures as below these will vary depending on your situation however they will always be a significant part of your budget.
- Waste water designed sewer system normally a bio system allow $13,000.00
- Storm water 2 concrete tanks, pump and power allow $ 7,000.00
- Road crossing if not existing allow $ 1,000.00
The figures below depend on distance to site from road.
- Power & phone to site allow $45 pm up to 200m $ 3,500.00
- To form driveway and surface with metal $ 2,000.00
- Site excavation and preparation $ 2,000.00
As can be seen it adds up quickly and as a rule of thumb you need to be allowing a minimum of $25,000 - $30,000 in the budget for these costs.
6. Do not rely upon sales people to collect this information, remember their income is more often than not commission based hence they need the sale.
7. In summary there are many things to consider.
Make sure you do your homework careful planning is a must.
Accurate budgeting will reflect in an enjoyable stress free, project.