A large number of first home buyers will look to buy land and build their dream home. With more government incentives available for this style of purchase, we think it’s ever more important to choose the right block of land in a new housing estate. So James is going to help tackle the best way to do so.

High level, how should you approach choosing a block of land?

You might have driven past them or seen listings on sites like realestate.com.au showing gorgeous parklands, people walking around a proposed town centres or a shopping precinct, which can all seem very appealing. 

But if you haven’t gone through the process, it can be daunting so we thought we’d outline the things you ought to know when considering buying a block of land for a new build. 

We’ve broken this down into 2 episodes, as there’s a bit to cover, so this week let’s run through the actual block.  

Let’s assume you’ve already selected the Estate you’d like to live in and you roughly know what the build is going to cost. 

For rough numbers let’s say that the total figure is $600,000 and the build is going to cost $280,000 leaving you with $320,000.

Working with this budget, you want to buy the best block you can afford. So let’s unpack what that means. 

1. Size, depending on where the block is located in the estate it might affect the price, even if it’s the same size. Here are some factors which could make the block more expensive, 

• Located next to or opposite a park or wetlands
• It might have access to the main feature of the estate such as a clubhouse, tennis courts, and pools
• Positioned on a dead-end street with no through traffic
• It could be in the last stage of the estate, as all the infrastructure has gone in, the developer no longer needs the fancy artist impressions, so they can bump up the price. 

And on the flip side here are some points which might make the block cheaper or compromised,  

• Near powerlines or substations
• On the main drive or road through the estate
• Has a slope across it VS being flat
• It might have an easement running through it
• And in contrast to being in the last stage, you could be in the first stage of the estate, and taking a risk as nothing has been built, you’re trusting the developer to come through with what they have proposed. These earlier stages also get discounted because you have to live through all the construction going around and might not have access to amenities until they are built, along with extended titles timelines if they get held up at council.  

1. Regardless of the price, all blocks could come with restrictions and covenants, these might be design guidelines which we will cover in the next episode, but things like double story only blocks or minimum sized homes are common, so it’s important you ask the sales agent if any of these apply to the block. 

What is Fill? 

Fill, it's a builders nightmare, essentially its additional soil the developer brings in to raise or level a site to meet flood requirements or fill in things like old dams. So it’s extremely important to ask if there is any fill on the block and if so, how much. You can take this estimate back to your builder to see if they turn white or not. 

The effect of the slop on a property price? 

• Blocks with slope cost more to build on so developers will discount them
• They require retaining walls, special slab types and sometimes stumps which limits your builder selection
• Slope will also limit the type of build, you’ll need additional stairs sometimes single level at the front dropping to a double at the back or vice versa. You can build some beautiful homes, but they just cost a lot more, and generally require a custom

Thanks again