What to Consider When Purchasing a Block of Land to Build a New Home

Buying land is one of the most exciting steps in building a new home, but not every block is as straightforward as it looks.

Two blocks in the same suburb can have a similar sale price yet produce very different building costs. Slope, soil conditions, access, easements, services, overlays and council requirements can all affect what you can build and how much it will cost.

Before signing a contract, it is worth looking beyond the location and land size. The right due diligence can help you avoid expensive surprises and make sure the block is suitable for the home you actually want to build.

Here are the key things to consider.

1. Start With the Home You Want to Build

It is easy to fall in love with a block before knowing whether your preferred home will fit on it.

Think about your essential requirements first:

• Single-storey or double-storey design

• Number of bedrooms and living areas

• Garage size and vehicle access

• Pool, shed or granny flat

• Outdoor entertaining and usable backyard space

• Accessibility or future mobility needs

• Privacy, views and natural light

A block may have enough total area on paper but still have a limited buildable area once setbacks, easements, frontage, slope and planning constraints are considered.

Engaging a builder or building designer before purchasing gives you a much clearer picture of what can realistically be achieved.

2. Check the Zoning and Planning Controls

The zoning of the land influences what can be built and how the property can be used.

Planning overlays and neighbourhood requirements may also introduce additional design, approval or construction obligations.

Depending on the property, relevant considerations may include:

• Flooding or overland flow

• Bushfire hazard

• Character or heritage controls

• Biodiversity or protected vegetation

• Landslide or steep-land constraints

• Airport noise or transport corridors

• Minimum floor levels

• Building height and setback requirements

• Small-lot provisions

Do not assume that because nearby properties have been developed in a certain way, the same outcome will automatically be available on the block you are considering.

Planning controls, approvals and site conditions can vary from one property to the next.

3. Understand the Slope of the Land

Sloping blocks can create outstanding homes, views and architectural opportunities, but they can also increase the cost and complexity of construction.

Potential additional costs may include:

• Excavation and earthworks

• Retaining walls

• Additional engineering

• Stepped or suspended floor systems

• More complex drainage

• Difficult material handling and site access

• Longer driveways or steeper driveway transitions

A simple visual inspection is not enough to accurately assess the fall across a block. A contour survey allows the builder and designer to understand the levels and develop a design that responds properly to the site.

In many cases, designing with the slope is more practical and cost-effective than trying to force a flat-block house design onto difficult land.

4. Investigate Soil and Ground Conditions

The soil beneath your home affects the footing and slab design. Reactive clay, uncontrolled fill, soft ground, rock or poor bearing conditions may require additional engineering and construction work.

A soil test completed by a qualified geotechnical professional helps identify the likely site classification and footing requirements. Depending on the results, additional costs could include:

• Deeper footings or piers

• Upgraded slab construction

• Rock excavation

• Removal and replacement of unsuitable material

• Additional drainage or site preparation

If the block has been filled, recently subdivided or significantly altered, it is particularly important to understand whether the fill has been properly placed, compacted and documented.

5. Review the Block's Size, Shape and Frontage

The total land area tells only part of the story. The width, depth, shape and street frontage of the property can have a major effect on design flexibility.

Narrow, tapered, corner or irregularly shaped blocks may affect:

• Garage placement

• Vehicle manoeuvring

• Side access

• Room widths and internal layout

• Private open space

• Setbacks from boundaries

• Pool or shed locations

Also check the true surveyed boundaries rather than relying on fences, online mapping or the selling agent's plan. Existing fences and improvements are not always located exactly on the legal boundary.

6. Identify Easements and Underground Infrastructure

An easement gives another party certain rights over part of the land. Common examples include stormwater, sewer, drainage, access and utility easements.

An easement does not necessarily make a block unsuitable, but it may restrict where the home, pool, retaining walls or other structures can be positioned. Sewer and stormwater infrastructure may also require minimum clearances or special construction methods.

Before purchasing, obtain and review the title search, survey information and available service plans. Where necessary, have the proposed building footprint checked by a designer, engineer or relevant authority.

7. Confirm the Availability and Location of Services

Do not assume that all essential services are connected simply because the property is in an established area.

Check the availability, capacity and location of:

• Sewer

• Water

• Stormwater drainage

• Electricity

• Telecommunications

• Gas, if required

The distance from the connection point to the proposed home can affect costs. For acreage or semi-rural land, you may also need to consider on-site wastewater treatment, water tanks, pumps, upgraded electrical supply or other private infrastructure.

8. Consider Stormwater and Site Drainage

Water needs somewhere safe and lawful to go.

Look at how water currently moves across the property, whether adjoining land sits higher, where the legal point of discharge is located and whether the proposed works will require pumps, tanks, pits or upgraded drainage infrastructure.

Poor drainage planning can create significant construction costs and ongoing problems after the home is complete. Low points, visible erosion, water staining and ponding after rain can all be warning signs that warrant further investigation.

9. Check Flooding and Overland Flow

A property does not need to be beside a river or creek to be affected by flooding. Localised overland flow and stormwater paths can also affect land during heavy rainfall.

Flood-related constraints may influence:

• Where the home can be positioned

• Minimum floor levels

• Earthworks and retaining

• Garage and driveway levels

• Insurance availability or premiums

• Approval requirements

• The future resale appeal of the property

Review the relevant council mapping and property information, then obtain professional advice where a flood or drainage constraint is identified.

10. Think Carefully About Access

Construction access is often overlooked during the land-buying process.

A narrow street, steep driveway, tight corner, overhead powerline or restricted frontage can make it harder to bring machinery and materials onto the site. This can increase labour, traffic-control, crane, pumping and delivery costs.

For the completed home, consider whether the driveway can achieve practical gradients and transitions. A driveway that technically fits may still be uncomfortable to use or cause low vehicles to scrape.

11. Review Orientation and the Surrounding Properties

Good orientation can improve natural light, cross-ventilation, energy efficiency and the usability of outdoor areas.

Consider:

• Where north is located

• Morning and afternoon sun

• Prevailing breezes

• Views and privacy

• Overshadowing from neighbouring buildings

• Large trees on or near the boundaries

• The likely location of future neighbouring homes

• Road noise and nearby facilities

A well-designed custom home can respond to the block's orientation and make better use of its natural advantages.

12. Understand Estate Covenants and Developer Guidelines

Land in a new estate may be subject to design covenants or developer approval requirements in addition to council and building rules.

These guidelines may control matters such as:

• Minimum house size

• Facade materials and colours

• Roof form and pitch

• Garage position

• Landscaping and fencing

• Timeframes for construction

• Whether certain building materials or designs are permitted

Make sure your preferred home design and budget are compatible with these requirements before you commit to the land.

13. Look Beyond the Advertised Land Price

The cheapest block is not always the cheapest block to build on.

When comparing properties, consider the total project cost, including possible allowances for:

• Site preparation and earthworks

• Retaining walls

• Foundation upgrades

• Service connections

• Stormwater infrastructure

• Demolition or vegetation removal

• Traffic management and difficult access

• Planning, engineering and approval costs

• Driveways, landscaping and fencing

A more expensive block with favourable levels, good access and readily available services may deliver a lower overall project cost than a discounted block with major constraints.

14. Make Your Contract Subject to Appropriate Due Diligence

Where possible, speak with your solicitor or conveyancer about including suitable due-diligence conditions in the land contract. The right conditions will depend on the property and your circumstances, but may relate to matters such as finance, soil testing, surveys, services, planning investigations or satisfaction with the block's suitability for your intended home.

Do not rely solely on verbal statements from an agent or seller. Important representations should be properly investigated and documented before the contract becomes unconditional.

Arrange a Pre-Purchase Site Assessment

The best time to identify a problem with a block is before you own it.

At Yellowwood Building Group, we help clients assess potential building sites throughout Brisbane and South East Queensland. We can review the block against your design brief, identify likely site constraints and explain the items that should be investigated before you commit.

Whether you are considering a standard design, a fully custom home, an acreage build or a difficult sloping site, involving your builder early can help you make a more informed decision and establish a realistic project budget.

If you are looking at a block of land and want to understand its building potential, contact Yellowwood Building Group on 07 3540 7822 or email sales@yellowwood.com.au.

This article provides general information only. Planning, engineering, legal and building requirements vary between properties. Buyers should obtain advice from appropriately qualified professionals before purchasing land or making contractual commitments.