Where to Find the Best Land Deals Right Now

7th October 2024

Finance & Budgeting Pre-Construction News & Industry Insights

This article covers the best ways to find great land deals in Australia, the key mistakes to avoid, and how new home sales consultants can help buyers save time and money.

Where to Find the Best Land Deals Right Now

Buying the right block of land at the right price can be a game-changer for your home-building journey. In this episode of the Home Building Hub podcast, hosts Colin Bischof and Darren Brennan break down the best ways to secure great land deals and highlight common pitfalls to avoid. Whether you're a first-home buyer, investor, or looking to upgrade, understanding the land market is key to getting the best value for your money.

Why Now Is a Great Time to Buy Land

Many areas currently offer some of the best land prices seen in years. However, these deals won’t last forever. As the market shifts, rebates and discounts will disappear. If you’re considering buying land, acting now could save you thousands.

The Three Main Ways to Buy Land

Understanding your purchase options can help you make an informed decision and avoid costly mistakes. Here are the three main ways to buy land:

1. Direct Purchase from a Developer

• This is the most common way people buy land (at land estate offices)
• You purchase a titled (ready to build on) or untitled block (still under development).
• Requires a deposit upfront, with final settlement occurring once the land is titled.

2. Resale Blocks

• Buying from an individual seller rather than a developer.
• Typically purchased through a real estate agent, similar to buying a second-hand home.
• The land has already been titled and settled.

3. Nomination Blocks

• A lesser-known but often great-value option, that can be purchased through a real estate agent, a land office or directly from an individual if posted on Facebook Marketplace for example.
• The original buyer secured a contract but cannot or does not want to settle, meaning you can be "nominated" to take over the settlement instead.
• You would pay the agreed deposit amount (usually to a conveyancer's trust account) and then you would take over their contract at the original or the agreed purchase price (potentially much lower than today’s market price).
• DO NOT proceed with a nomination without a conveyancer to handle the legal transfer.

Where to Find the Best Land Deals

Finding the best deals requires knowing where to look. Many of the best land opportunities are not publicly advertised. Here’s where you should be searching:

• New Home Sales Consultants – They have inside knowledge of upcoming deals and off-market opportunities.
• Real Estate Agents – Some agents have exclusive access to resale and nomination blocks.
• Realestate.com.au & Domain.com.au – Great for finding resale and direct-sale blocks.
• Facebook Marketplace & Gumtree – Increasingly used by individual sellers to advertise land deals.
• Property Insights Australia Facebook Group – A private group where nomination blocks are frequently listed.
• Openlot.com – A platform that provides information on available land across different estates.

Mistakes to Avoid When Buying Land

While a cheap price might seem tempting, it’s crucial to understand why a block is priced lower. Here are common mistakes to avoid:

• Ignoring Site Costs – A block with significant fall or poor soil conditions can cost you thousands in additional construction expenses.
• Overlooking Compliance and Setbacks – Planning regulations vary by location. Restrictions on setbacks, site coverage, or easements could impact your build.
• Estate Covenants – Some estates have strict rules on house designs, requiring features like eaves or particular façade materials, adding unexpected costs.
• Bushfire Management Zones – Some blocks require additional safety measures, which can also increase costs.
• Ignoring Small Lot Housing Code Rules – Blocks under 300sqm have different planning requirements that may limit your design options.

The Role of a New Home Sales Consultant

A new home sales consultant can be your best ally in securing a great land deal. They:

• Know which blocks are available (including off-market opportunities).
• Understand site costs and potential building challenges.
• Have access to exclusive discounts and rebates.
• Ensure your chosen block suits your preferred home design.
• At the end of the day, it is in their best interests to find a land solution for you that fits your overall house and land budget.

Key Takeaways

• Now is the time to buy – Land prices are lower than they have been in years, but deals won’t last forever.
• Know your purchase options – Direct purchase, resale blocks, and nomination blocks all have advantages and potential pitfalls.
• Use multiple sources – Don’t rely on online listings alone; speak to industry professionals and check less conventional sources like Facebook Marketplace (but make sure a sales consultant check the land too).
• Avoid costly mistakes – Consider site costs, compliance requirements, and estate rules before committing to a block.
• Work with a sales consultant – Their expertise can help you secure the best deal and ensure a smooth purchase process.

For a deeper dive into these insights, listen to the full episode here: Where to Find the Best Land Deals Right Now.

Glossary of Terms

• Titled Land – Land that is ready to build on immediately.
• Untitled Land – Land that is still under development and not yet registered for building.
• Nomination Block – A block where the original buyer transfers their contract to a new purchaser.
• Setbacks – The required distance between a building and property boundaries.
• Site Costs – Additional expenses due to land conditions, such as concrete slab, retaining walls, excavation, etc.
• Estate Covenants – Design and construction requirements set by land developers to maintain a uniform community appearance.

Frequently Asked Questions (FAQ)

Q: What’s the biggest advantage of buying a nomination block? A: You can secure a property at an older contract price, often saving thousands compared to today’s market rates, but your finance will need to be in order as settlement can often be with days or weeks.

Q: How do I check if a block has high site costs? A: A new home sales consultant or builder can assess soil conditions, fall, and engineering reports before you commit.

Q: Can I negotiate the price of a block of land? A: Yes! In the current market, developers and resellers are open to negotiation. Sales consultants can often help push for better deals.

Q: What’s the best way to find off-market land deals? A: Speak to sales consultants, real estate agents, and join property investment groups on social media to access exclusive opportunities.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.