Tips for buying land

Allianz Home Insurance

Do you want to have greater input into the design of your home? Then building a new home - one that will suit the needs of you and your family - is the way to go! However, before you start drafting up plans, you'll need some dirt to put it on. It's time to buy a block of land.

Blocks of land literally come in all sizes. There are house blocks in new residential subdivisions that have all the services ready to be connected, from water and electricity to fibre-to-the-home Internet. There are blocks where the owner of a very large house block in an established community has sub-divided. There are small acreages, generally on the outskirts of rural towns with some amenities like electricity and garbage collection. There are farm properties - from small to large to enormous - possibly with the only service being the telephone. You can even consider buying a block of land that has a low-value house on it which you demolish.

Buying land gives you the flexibility to build your own home, specific to your own taste and needs.

Blocks of land come in all shapes. There are square and rectangular blocks, corner blocks, battle-axe blocks and blocks with no street frontage and a long driveway for access. There are flat blocks, steep blocks, sloped blocks, blocks with cliffs, blocks set down from the road and blocks set above the road. There are low-lying blocks and blocks with waterways nearby. There are blocks that face north-south or east-west, blocks that are in the lee of a hill and ones which fully face the weather. There are timbered blocks, blocks close to bushland, rocky blocks and blocks subject to erosion or with unstable soil.

Each shape and size will present challenges for the design of your home. If the block you are looking at is rectangular, flat, with full street frontage, in a flood-free area away from bushland and without trees, with access to all services in a new or existing residential sub-division, and with stable soil without rocks then congratulations. If you also have a view then, as they say, you've struck pay-dirt.

If the block you are looking at has some of the other features mentioned above then you'll need to carefully evaluate how they will impact the design and cost of construction.

Some factors worth noting are:

Don't forget location

Choosing land close to services such as shops, parks and schools can save you travel time, but be aware of issues like noise pollution. A better location might not offer your ideal piece of land or desired price, but can be worth it if you are able to walk or cycle to shops, schools and public transport, making life easier and healthiervi.

Choosing land where you can cycle to the shops can make life easier and healthier.

As important as proximity to services are, there are some location issues it is important to be very aware of as they may impact your ability to obtain finance and insurancevii, restrict the type and design of house you can build, and increase construction costs.

Check whether the area is prone to natural disasters such as floods, bushfires or cyclones.

Low-lying areas situated near rivers tend to have a high risk of flooding in Australiaviii. Before buying land, contact the local council to find out if the land is in a flood zoneix,x,. Geoscience Australia also provides information about past floods and flood-prone areas. Flood prone areas may also place restrictions on the type of house you can build. Extra costs may be incurred to build an elevated house and put in special foundations to meet the building standards for flood-prone areasxi.

If your land is situated near a heavily timbered area or one with a history of previous bushfires, the risk of a bushfire occurring can be greaterxii,xiii,xiv. To find out if your land is in a bushfire prone area, contact your local council and ask to view your local bushfire-prone land mapxv,xvi,xvii. In bushfire prone areas bushfire construction codes may have to be complied with, adding to cost.

Land situated in the northwest of Western Australia, the top end of the Northern Territory and northeast Queensland are at significant risk of experiencing cyclonesxviii. Construction will need to match the relevant standard. The Bureau of Meteorology has maps to show which areas have experienced cyclones in the past and predictions for the future. Cyclones can also cause flash flooding so you will need to be prepared for all eventualities if you build therexix. Contact your local council to find out if your land is prone to flash flooding or storm surgesxx.

Land use will also be limited by council or state government planning controls. Things to look for include required setback from boundaries, shadow rules, height restrictions, floor space ratios (FSR), open space requirements, and minimum block size (if you want to consider future sub-division opportunities). Building design may also be impacted by heritage area requirements.

Buying a block of land to suit your needs can be an exciting yet anxious time. When you have built your new home, protect your investment with Allianz home and contents insurance. Contact Allianz for a quote today.

i Adams, D 2012, 'Buyers beware of land block pitfalls', Domain, 2 September, viewed 5 August 2013,

ii 'Soil tests can save a packet' 2012, The Courier Mail, viewed 16 October 2013,

iii Building Services Authority 2012, Smart Building and Renovating, viewed 11 November 2013,

iv South Australian Government 2011, Buying land, viewed 16 October 2013,,+property+and+land/Building+and+development/Land,+boundaries,+surveying+and+sub-division/Buying+land

v Australian Government 2010, Choosing your new home: find the perfect fit, viewed 5 August 2013,

vi Australian Government 2010, Choosing were to live: location, location!, viewed 5 August 2013,

vii Family & Community Services NSW Housing 2010, Buying Land and Building a Home, NSW Government, viewed 16 October 2013,

viii Geoscience Australia 2013, Where do Floods occur?, Australian Government, viewed 16 October 2013,

ix Department of Planning & Infrastructure, New South Wales Government 2013, Guide to Complying Development under the Rural Housing Code, viewed 16 October 2013,

x Flood Victoria, Victorian Government 2010, Land Use Planning and Controls, viewed 16 October 2013,

xi Australian Building Codes Board 2012, Construction of buildings in flood hazard areas, viewed 29 November 2013,

xii Geoscience Australia 2012, Where do Bushfires occur?, Australian Government, viewed 16 October 2013,

xiii Country Fire Authority, Victorian Government 2012, Am I at risk?, viewed 16 October 2013,

xiv Fire & Emergency Services Authority of Western Australia, Western Australian Government 2007, Bush Fire Survival Manual, viewed 16 October 2013,

xv Department of Planning and Community Development, Victorian Government 2013, Building in Bushfire Prone Areas, viewed 16 October 2013,

xvi NSW Rural Fire Service, New South Wales Government 2013, What is a Bush Fire Prone Area, viewed 16 October 2013,

xvii Queensland Government 2013, Building in a bushfire prone area, viewed 16 October 2013,

xviii Geoscience Australia 2013, Where do Cyclones occur?, viewed 16 October 2013,

xix Bureau of Meteorology, Australian Government 2013, Storm Surge Preparedness and Safety, viewed 16 October 2013,

xx Department of Community Safety, Queensland Government 2009, Cyclone, viewed 16 October 2013,