Your Guide to Choosing the Perfect Plot for Building Your Dream Home

Building your dream home is an exciting time of your life whether you’re a first-time builder or an old hand at it. One of the first and most important steps is selecting the right plot of land. This decision will impact not only the cost of your project but also the long-term value of your property and, more importantly, your happiness.

Today, our home building loan experts guide you with the prudent steps you should take when buying land for building.

Understand the Importance of Location

Before you even begin searching for the perfect plot, remember what Lord Harold Samuel said in the 1940s: Location, location, location. This phrase has always remained relevant and is 100% valid in today's market.

The area in which you build will have a lasting impact on your lifestyle, investment potential and the future resale value of your property. Make sure the location meets your needs, such as proximity to work, schools, amenities and public transport.

In Australia, properties in prime locations often yield better long-term returns. In 2023, Sydney and Melbourne have seen a 6.9% capital growth on average in highly sought-after suburbs, with areas like the North Shore in Sydney seeing returns of up to 12% annually.

A plot in a well-established area with growth potential can make a huge difference down the line.

Research Zoning and Land Use Restrictions

When buying land for construction, always check the zoning and land use restrictions with the local council. Different zones allow for different types of construction. If you plan to build a residential home, ensure the land is zoned for residential purposes. Zoning laws might restrict you from building what you envision, so it’s crucial to verify the plot’s zoning before making a decision.

Additionally, you should research any potential future developments around the area. It’s best to avoid building on land that might later be surrounded by industrial complexes or other developments, like airports, that could affect your privacy or quality of life.

Check for Hidden Problems

Not all problems are visible when you first inspect a plot of land. Land might seem perfect at first glance but could have hidden issues such as poor drainage, soil contamination or underlying infrastructure problems. Always hire a professional land surveyor to conduct a comprehensive site inspection. This can help you identify problems like flooding risks or unstable soil that may be expensive to rectify later on.

It’s also essential to check if the land has any legal disputes, unpaid land taxes or easements. Sometimes, previous owners might not even be aware of issues like unpaid debts or unresolved land disputes, which could cause complications for you down the road.

Assess Infrastructure and Utilities

Before buying a plot, make sure the necessary infrastructure and utilities are available or can be easily connected to the land. This includes access to roads, electricity, water and sewage systems. If the land doesn’t have these services already in place, you may face significant costs to have them installed.

Moreover, check for adequate access to the plot. A plot with no proper road access can significantly increase construction costs and might even make it difficult to get building permits.

Budgets & Home Building Loans

When purchasing land for building, always consider your budget. Factor in the total cost of buying the land, obtaining the necessary permits and construction expenses. Depending on the size and cost of the land and construction, you may need a specific home building loan that suits your needs.

At Mortgage Providers, we offer expert advice on securing the best home building loans to finance your land purchase and construction project. It’s essential to work with a broker who understands your goals and can guide you in finding the right loan. We also offer access to over 40 lenders, helping you find a tailored loan solution that fits your financial situation.

Choosing the right plot of land to build your home is a multi-step process that requires careful research, planning, and consideration. Taking the time to thoroughly research the land and secure the appropriate financing will set you on the path to successfully building your dream home.

Ready to build your dream home? Secure your home-building loan today!