Section Questions: Informational Article for Build7 Central Otago
This piece was written for Build7 Central Otago as a part of their monthly promotional strategy,
and to address current questions in the New Zealand property market.
One of the essential requirements needed to build a new home is land to raise it on. When buying a section, the importance of being thorough can not be understated, as details left unknown can result in costly mistakes and regretful investiture. With the number of land offerings on the Central Otago market, I've taken the time to compile some points for you to consider as you begin or continue to search for the ideal parcel of land for your project. I'll address these from the perspective of avoiding mistakes by overlooking some of the critical details you and your builder need to know. Before I start, I'll mention that it's helpful to have professional insight when considering a section's purchase; if you need a helping hand, Build7 is here to help. This blog post covers some of the precise details that we look at when assessing our clients' land options. If you haven't reached that point quite yet or are considering a new build, we've prepared another post as a sort of primer for you; check that out here.
Mistake #1: Overemphasising price before considering practicability.
Ever heard the saying, "You get what you pay for"? That sentiment rings all too true for purchasing a section, but sadly many have learned the hard way by chasing a bargain without doing the homework. Chances are if the price seems too good to be true, it is, and that can be for a variety of reasons, some of which we will cover shortly.
A quality piece of land is a foundational factor in a successful and equitable build and should have considerable weight in any project budget.
One of the common ways that builders have traditionally estimated the price of a build is "price per square meterage"; this has a part to play in why people tend to become stingy when inspecting land options. While it makes for what appears to be a neat and tidy approach, it can be very misleading. Depending on the home structure, the same amount of square meterage can be enclosed by very different arrangements of walls and materials, resulting in substantial differences in price for architectural components and materials. So when a particular figure based on price per square meter is estimated, prospective buyers find a house plan they presume fits within their budget, then attempt to squeeze it onto a piece of land that suits the budget without considering the property's quality. Besides, different building firms include differing portions within their calculations; outdoor areas, patios, voids, porches and verandas can be included in some and not in others. This can make matters even more confusing. Navigating this process with the builder you intend on utilising can be a life-saver in this regard.
People fall victim to this mistake by overemphasising their perceived lifestyle preference over what they are willing to pay for the home's construction. For instance, in the case of lifestyle properties like a rural estate or acreage properties, the land may seem to have great potential, when underneath, hidden costs lurk. This can range from incomplete or missing underground services, uneven terrain, unsuitable mineral or soil constitution and long distances for deliveries from suppliers and tradesman, and different lending criteria. The expenditure involved in getting these sites construction-ready can be immense. Also, expensive water tanks and septic systems will likely need to be installed on the land, incurring even more cost.
While finding what appears to be a choice piece of land in the countryside or a bargain buy in a more urban setting can be enticing, the best practice is to consult with a builder to obtain a site that stands to be economical and suitable for your build. Avoid buying decisions based solely on price to hard pass on potentially rude surprises.
Mistake #2 Overlooking Critical Factors and Inspections
If you take one thing away from this article, let it be this: do your homework. Many unnecessary expenses can be avoided by simply ensuring that a few key but common-sense checks are completed before signing on the dotted line. At Build7, we're invested in our clients' wellbeing and success, so we pay close attention to the details by asking the following questions:
Has a Geotech report been prepared for the land?
One of the most critical and informative assessments of a section is contained in the geotechnical report, prepared by geotechnical engineers, nonetheless. The information comes after a detailed examination of the land's sub-surface properties, including soil, minerals deposits, chemical deposits, and groundwater, in the interest of determining how the earth will behave in response to the proposed construction. The results will determine what is needed to ensure the land is secure and suitable for building and what may need to happen to achieve that goal, including retaining walls and other stabilising earthworks. The Geotech or soil report is usually required to receive approval from local councils when preparing to build.
What is the slope of the land? What does that mean for the build process, and what costs does that incur?
If the land possesses a high degree of slope, it can be an indicator of potential expense in the form of earthworks; even one meter of incline or decline can cause a retaining wall. Slope presents unique challenges to the engineer and to the architect as they attempt to reconcile what the proposed structure requires and what the land will accommodate.
What will the approximate Watercare Infrastructure Charge be?
Depending on where you build, you may need to pay a fee to install services such as water and sewer connections. Charged to individuals who are placing demand on the system on a case-by-case basis, it is an alternative to increasing utility bills for everyone across the board.
What services are on the land, and are they to the edge of the property? What's missing, and how much will it cost to add?
These services include electric power, water, natural gas, phone lines and fibre-optic cable for the internet. If these services are not provided to the land, adding them can be a substantial cost.
Is there a stormwater connection? If not, where is it?
If the connection is not on the section being considered, it may be on another piece of land belonging to someone else.
Is an engineered solution for stormwater needed?
If there is unique soil makeup or slope involved, a specialised solution may be required to distribute rainwater and protect your home from flooding. Possible requirements can be water detention systems that store water and release it incrementally or retention systems that allow stored water to absorb back into the soil.
Is there a sanitary sewer connection? Is specialised technology required?
These technologies can include Eco tanks for storing rainwater or macerating pumps for assisting with sewage processing.
What is the mandated site coverage for the area?
Depending on the council area, development or subdivision that you are considering, there may be minimum or maximum coverage bylaws in place. These bylaws can be a determining factor in the size and type of home that you are legally able to build on that site.
Is the section long and narrow?
As we mentioned before, the configuration of a home can significantly increase structural and material costs. Generally, extended and narrower floorplans consume more materials and therefore have a higher price to build. Thus, the dimensions of a section directly correlate to the potential costs of a building project.
Is the section well-positioned for heavy rainfall, or is it situated at the 'bottom' of the subdivision?
If there were to be torrential rain, where would the water run? It's possible for water infrastructure to become overwhelmed with disastrous outcomes for those unfortunate enough to be situated at a low point in the area's topography.
Can I build what I want on this land?
Coming to the hunt for land armed with your home idea is essential for determining whether your dream home is compatible with the section you are investigating.
Mistake #3: Going it alone.
An excellent recipe for mistakes is to attempt to navigate this process by yourself without having previous experience or know-how. That's where I believe that Build7 excels in assisting our customers with seasoned expertise and comprehensive knowledge of how to take a pile of dirt and make it a home. We know all the ins and outs of the sequence, and we genuinely care about getting our clients the best outcome. We have the contacts, the technical training and ideas galore, all the ingredients for a build that surpasses expectation.
The moral of the story is: buy the best section you can afford, do your homework, and enlist the help of a builder you can trust. If you feel like Build7 might be the builder for you, Jolanda and I are an email or call away.
