Many people in Victoria are torn between buying a house and continuing to rent, and it is easy to understand why. Each option has its pros and cons, but owning a property provides security and acts as a forced savings mechanism because you build equity as you pay your mortgage. But renting is usually more affordable and offers the freedom to move whenever your lease is over.
But if you are somewhere in between, strongly consider buying vacant land for sale near Grovedale or any promising Geelong suburb. Why? Here are the practical reasons why these places are worth a second look.
Compared to purchasing a house and land package, choosing a vacant lot makes it easier to enter the property market. Generally, lenders have a conservative attitude toward empty land, but many financial institutions are willing to loan you up to 95% of the property’s value. That means you only need to pay 5% out of your pocket up front. If you can handle several hundreds of dollars’ worth of monthly payment without negatively impacting your lifestyle, then it can be a good deal.
The Value Appreciates Over Time
Any real estate expert attest that land is an asset and the structure built on it is a liability. It is the lot that grows in value over time. If you pick a good location, your rate of return can be high. Sure, it takes decades before you can substantially grow your wealth with it, and you can’t convert equity to money you can spend until you sell it. But it can be a sound form of investment, and you can turn a profit off of it someday when you sell it.
It Costs Little to Maintain
Yes, land also needs upkeep, but it pales in comparison to that of a standard house. A vacant lot has no existing systems to maintain, requires no power, is practically immune to the rigours of nature and is proof against theft.
It Attracts Fewer Buyers
If you choose to purchase land, expect less competition. As a buyer, this is good news since the owner is less likely to ask a lot of money for it. But demand is relative, so, again, select a strategic location to find a lot that makes sense to you.
It Provides Flexibility
Most importantly, it lends itself to customisation. You can build anything on it as long as your project complies with the zoning rules and the local building code. When you decide to erect a residential building, your choice is not limited to traditionally built properties only. You may be allowed to put a transportable kit home on it, which is more affordable. After all, you can use your rent as proven savings to qualify for a construction loan later on.
You do not even have to live in the structure you will build. If you love your current place so much and have no plans to move, you can rent the property on your land. Buying land, of course, can be a costly proposition, so you should still think it through. If owning property as an investment makes sense at this point in your life, start exploring promising pieces of real estate and shopping around for vacant land loans.