Buying Land? These 3 Overlooked Details Could Cost You Thousands

7th April 2025

Finance & Budgeting Pre-Construction

Thinking of buying land for your new home? This article breaks down three easily overlooked details that could cost you thousands if missed – from missing boundary pegs to block orientation and rubbish removal. A must-read for any Australian home buyer before signing a land contract.

Buying Land? These 3 Overlooked Details Could Cost You Thousands

Buying land to build your new home sounds straightforward - but it's easy to miss key details that can cost you thousands down the track. In this episode of the Home Building Hub podcast, Colin and Darren share three common land buying mistakes they’ve seen time and again, along with simple steps to avoid them. Whether you're new to the journey or deep in the research, these insights could save you serious time and money.

1. Missing Survey Pegs at Settlement

When buying land, many assume the boundaries will be clearly marked at settlement. Not always the case.

• Land boundaries are defined by survey pegs - usually one in each corner of your block.

• Pegs often go missing due to nearby construction.

• If your builder turns up and they’re not there, you may need a re-establishment survey, costing $800 - $1,200.

Tip: Add a clause to your land contract stating that all boundary pegs must be in place at settlement. If they’re missing, the vendor must cover the cost of re-establishment.

2. Land Must Be Clear of Rubbish and Contamination

Another often overlooked issue is the condition of the block itself.

• Rubbish, debris, or contamination on-site can delay your build and cost you money.

• A clean site also deters illegal dumping, which can snowball if not addressed early.

• Clearing costs can range from $2,000 to $3,000 or more depending on the level of debris.

Tip: Include a clause in your contract that the block must be clear and clean-scraped prior to settlement.

Scraped means thoroughly cleared, not just surface rubbish removed. Even small debris can affect soil quality and building conditions.

Bonus Tip: Drive around nearby completed stages of the estate to get a feel for local site cleanliness and potential dumping risks.

3. Ignoring Orientation Can Impact Livability - and Cost

Block orientation isn’t just about which way your house faces. It affects:

• How much natural light your living areas receive

• Your home’s ability to meet 7-star energy rating requirements

• Your heating and cooling costs

• Overall livability of your home

Builders now need to meet tougher energy efficiency standards. If your living areas are positioned on the wrong side of your house, you may face extra costs for:

• Upgraded glazing

• Insulation

• Design adjustments to achieve compliance

Tip: Know where your driveway and garage will sit. Match your home design to suit the sun path. A knowledgeable building consultant can help avoid mismatched orientation that affects both your comfort and your budget.

Also consider:

• Fall of the land

• Retaining walls and fence heights

• Shadowing from double-storey neighbours

These physical conditions can block natural light - even on a north-facing block.

Key Takeaways

• Check survey pegs are present at settlement or get the developer to pay for replacements.

• Make sure your land is clean and include a clause in your contract to enforce it.

• Orientation matters. Choose the right block and floorplan combination to avoid expensive upgrades and poor lighting.

• Have the right team: a construction-experienced broker, great conveyancer, and experienced new home consultant make a world of difference.

Listen to the full episode here: Buying Land? These 3 Overlooked Details Could Cost You Thousands

Glossary of Terms

Survey Pegs: Markers placed on a block of land to indicate property boundaries.

Re-establishment Survey: A survey conducted to replace missing boundary markers.

Scraped Block: A block that has been thoroughly cleared of surface and sub-surface debris.

Orientation: The direction your home faces in relation to the sun. Impacts natural light and energy efficiency.

Energy Rating: A measure of a home’s energy efficiency. New builds in Victoria must meet a 7-star minimum.

Frequently Asked Questions

Q: What happens if my survey pegs are missing and I didn’t include a clause in the contract? A: You will likely have to pay for a re-establishment survey out of your own pocket, costing $800 - $1,200.

Q: Can I clear the land myself instead of hiring a contractor? A: You can, but don't be surprised if the builder makes you get it scraped also. A professional scrape ensures the block is properly ready for construction.

Q: How do I know which orientation is best? A: North-facing living areas are typically preferred for better light and energy efficiency. Your builder or consultant can help assess your block and plan combination.

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 http://www.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.