Should I Buy Land And Build, Or Buy A Home To Renovate?

You have found yourself at a common property crossroads: buy a block of land and create a home from the ground up, or buy an established property with the potential to renovate. Both paths can lead to a home that feels like yours, but they involve very different questions around the property, project, timing and budget.

For buyers in Melbourne’s south-east, the useful question is not simply which option sounds more exciting. It is which property gives you the right starting point for what you actually want to create.

What does buying land and building give me?

Starting with vacant land can give you the opportunity to plan a new home around your needs rather than adapting to someone else’s floorplan. But the block itself is only one part of the decision.

Before purchasing land with the intention of building, it is worth investigating the site and the requirements that could affect your plans. Consumer Affairs Victoria’s due diligence guidance notes that residential land can be affected by matters that impose restrictions or obligations on a buyer. Building plans also need to account for factors such as foundation data and soil testing, local council requirements and site conditions.

Questions worth asking include:

• Does the block suit the type and size of home I want to build?
• What planning, title or site constraints need to be investigated?
• What could the site conditions mean for the design and construction?
• Are the services I need connected or available?
• What is involved beyond the advertised price of the land and home design?
• What does the likely project timeline mean for my current living arrangements?

Buying land can feel like beginning with a blank page, but it is rarely a blank page in a technical sense. Understanding the block before committing to a design is an important part of the process.

What does buying a home to renovate give me?

The alternative is to find an established property where the location, block or existing home gives you something worth working with.

You might find a home where the basic layout works but the kitchen, bathrooms or finishes need updating. Another property might have potential for a larger reconfiguration or extension, subject to professional assessment and any required approvals.

Consumer Affairs Victoria recommends that buyers considering an established property for renovation ask an architect, draftsperson or builder what renovations are possible. It also notes that a building inspection before purchase can help identify repairs and maintenance requirements and their estimated cost.

Before falling in love with the renovation you can picture, ask:

• What am I actually buying underneath the dated finishes?
• Is the existing structure suitable for what I want to change?
• Could the renovation require more extensive work than I initially expect?
• What professional inspections and advice should I obtain before purchasing?
• Would I need to live elsewhere while major work is completed?

How do buying land to build and buying to renovate compare?

Questions to consider when choosing between land to build on and an established home to renovate

Consideration	Buy land and build	Buy and renovate
Starting point	You begin with the land and plan a new home for the site.	You begin with an existing home, its structure and its current layout.
Design	You can plan a new home, subject to the site and relevant requirements.	Your plans need to work with, alter or extend the existing property.
Due diligence	Investigate the land, title, services, site conditions and applicable planning and building requirements.	Investigate the property condition, existing building and whether your proposed changes are feasible.
Project	The purchase is followed by the design and construction process.	The purchase may be followed by anything from cosmetic improvements to substantial building work.
Professional input	Building, design, legal and technical advice may be relevant before committing.	Building inspections plus design, building, legal and technical advice may be relevant before committing.
The key question	Is this the right block for the home I want to create?	Is this the right existing property for the transformation I have in mind?

How can I tell whether a property really has potential?

Potential is one of the easiest things to see at an open home and one of the hardest things to quantify.

A buyer might walk through an older home and immediately picture an open-plan living area, a new kitchen or an extension. Another buyer might stand on vacant land and already see the finished house.

That vision is useful. It gives you a reason to explore the opportunity. The next step is testing it.

Before buying, consider the property through several lenses: what you want personally, what may be technically possible, what the project could involve and whether the overall property makes sense for your longer-term plans.

Where do Peake Projects and our sales team fit into the decision?

This is where having different property perspectives in the same conversation can be valuable.

At Peake, our experienced sales team works with buyers looking at established homes and land across our core areas of Berwick, Officer, Beaconsfield and surrounding suburbs. When a purchase also involves a future building or renovation project, our Peake Projects department adds another useful perspective to that conversation.

Instead of looking only at what a property is today, the discussion can also consider what you hope it could become. That can help you identify the questions that should be explored with the appropriate builders, designers, building professionals, conveyancers or other advisers before you make a commitment.

Our Director, Brix Cai, is available to talk through the property side of that decision and help you think about the questions worth asking. You can reach Brix on 0433 925 529.

We are not here to tell you that building is better than renovating, or vice versa. The aim is to help you look at the opportunity from more than one angle before you decide which property is right for you.

What should I investigate before making an offer?

Whether you are looking at vacant residential land or an established home, due diligence matters. Consumer Affairs Victoria recommends that buyers investigate issues that could affect the property or create restrictions and obligations. It also recommends having a legal practitioner or conveyancer check the Section 32 vendor’s statement and contract of sale before buying.

If you are planning building work, remember that the purchase decision and the building project are separate decisions. In Victoria, required planning and building permits need to be considered before applicable work starts, and the homeowner is responsible for ensuring required permits are obtained even when another party obtains them on the homeowner’s behalf.

A useful starting checklist is:

• Be clear about the finished home you want, not just the property you want to buy.
• Set a realistic overall budget and allow for professional advice and project-related costs.
• Investigate the property or land before committing.
• Have the contract and Section 32 documentation reviewed by an appropriate legal practitioner or conveyancer.
• For an established home, consider an independent building inspection and professional advice about your renovation ideas.
• For vacant land, investigate site conditions, services and constraints relevant to your proposed build.
• Understand the planning and building approvals that may apply to the project.
• Think about your timeframe and where you will live while building or renovating.

Common questions

Is it easier to buy land and build than renovate?

They are different project pathways rather than simply an easier and harder option. A new build means working through the land, design, approvals and construction process. Renovating means understanding an existing property and what can realistically be changed. Your circumstances and the particular property will shape which pathway suits you.

Should I get a building inspection if I plan to renovate anyway?

It can be valuable. Consumer Affairs Victoria notes that a building inspection before buying an established property can help identify repairs and maintenance requirements and their estimated cost. Consider appropriate independent professional advice for the property you are assessing.

What should I check before buying vacant land?

Start by investigating matters that could affect what you can do with the land, including relevant title, site, services, planning and building considerations. The specific checks will depend on the block and your proposed project, so professional advice may be needed.

Can Peake help me decide between a block and a renovator?

Our sales team and Peake Projects can help you approach the property decision from different perspectives and identify questions worth investigating. Building feasibility, design, legal, financial and technical matters should be confirmed with the appropriately qualified professionals.

This article provides general information only and is not legal advice. Requirements can change, so consider obtaining advice that reflects your circumstances.

Sources

• Consumer Affairs Victoria: Research types of property to buy
• Consumer Affairs Victoria: Due diligence checklist for home and residential property buyers
• Consumer Affairs Victoria: Plans and permits checklist
• Consumer Affairs Victoria: Buying property checklist