Purchase a block of land under option

[Jakob]

Purchase a block of land under option
Hi everyone, I always have interest in property investment. I have couple of investment property.
Recently I have spotted a block of land about 2.4ha, its sets back of houses
and have dual street access @ price $400k. It has 2a residential zoning.
I thought it would have a lot of potential if I can purchase it under option.
Meanwhile If I can get DA approval from the council and subdivide to 20-30 lots.
(I know it could take up some times 3-12 months)
and sell it around $580k once the approval came out. The idea is the control and adding value and then sell it without putthing much of money down.
Sounds I ideal, I know it could be a lot of work. But I am willing to take my 1st step~
I have heard a lot about purchased under option.But this
is my 1st time, can someone please advice me what are the right steps to do this. (What are the must I should check and do before I purchase under option, are there particular professionals I should approach?)
If I purchase the land under option and things I should aware of and risk?

Thanks in advance~

 

[Aaron_C]

First the vendor has to agree to it..

 

[Jakob]

Thanks Aaron, already talked to agent, the possibility is high. Can you advice me if the vendor says yes, what are the things must be done to reduce my risk. I have a lawyer organised.

 

[Terry_w]

Thanks Aaron, already talked to agent, the possibility is high. Can you advice me if the vendor says yes, what are the things must be done to reduce my risk. I have a lawyer organised.

Work out the terms, get a verbal go ahead from vendor get your lawyer to go through the contract of sale, negotiate any terms with the contract and have the option agreement drafted.