You don’t buy a lot planned to be subdivided and expect it to be titled the month the sales rep said it would (….not entirely his fault either).

26 October 2013 – Put in the deposit for Lot 320

      Click on the photo to see the land development

We paid in our 10% deposit for the land October 2013 expecting it to be titled in March 2014, but ended up being delayed and  settled in October 2014. We’ve considered a few other Estates that was advertised to be titled at the same time, March 2014. But just started the works a month ago. I can’t imagine the frustration if we pursued to buy there.

It was not our original plan to get a vacant land that is yet to be titled but a year helped us save and really know what we want in our home. But for someone whose plan is to move in as soon as possible, this option might not be good for you. Below are the positives and negatives we’ve encountered.

PROs

• They are usually cheaper than those lots already registered (say on the same location)
• Purchase price might be cheaper than it’s market value at the time it’s titled, good for investments
• Waiting time would be a good opportunity to save and plan what you want in your home
• Buying vacant land in general (applies to those living in Victoria), will incur stamp duty fee for the purchase price of the lot only and will be entitled to 50% discount once confirmed that you are starting your home construction

CONs

• They take a long time to title and you have no control over it
• Purchase price might be higher than it’s market value at the time it’s titled
• If you signed up for the build early, builders might charge you for the price increase if title came later than expected

Tip: Let the vendor know that you’re okay with the wait and that you’ll be fine as long as they update you accordingly.

Is the land you’re looking for worth the wait? Let us know on the comments below!