What to consider before buying land in Australia

These are important strategies and risks to Consider When Buying Land

land investment in australia

There are many reasons why you may wish to buy a piece of land although some of the most common are to build your own home or create properties for resale. This can be a lucrative business but it is important to develop the right strategy to purchase the land and be aware of all the risks involved.

The Risks

The biggest risk is in purchasing a piece of land that you can’t build on or will cost you a lot more than you think. This is not land that doesn’t have permission to be built on. It is land that has utilities and sewerage running underneath it. Before you commit to any plot you should have a survey completed with ground penetrating radar. This will highlight any utilities running under the ground which may cause you issues when you build. It can even show the unexpected surprise of a rock substrate. This will seriously affect the way in which you build.

Of course you also need to be aware of what zoning classification your land has; you may not even be able to build on it. There are also risks associated with the environment; particularly any animals that live on your new piece of land. You may find you’re unable to disturb them. It is also worth considering how close you are to the min utilities. The electric and water boards can charge a significant sum getting these utilities to your property; if they are even prepared to do it.

australian land investment

Choose the Right Strategy

Assuming you’re happy that the land has potential then there are several strategies you can adopt to make the most from it:


Just like property you can buy land and then sell it on. This is only viable if you are confident that you are getting the land at below its market value.

Hold It

Another option is to purchase a piece of land in the hope that it will be worth a lot more in the future. This is likely if a town is gradually growing. You may even simply feel the land will appreciate as the years pass. Of course this strategy means you need to have spare cash; you’re not going to get a quick return on your investment.

land investment in australia


Subject to planning constraints you can purchase a piece of land and build a property or properties on it. But, instead of selling the properties on you could choose to hold onto them and rent them to people. The return on your investment is slower but potential much greater.


It is possible to purchase land simply to grow something. For example you may wish to create your own vineyard. You’ll need to make sure the land and the climate are suitable for this type of growing.
The return on your investment will be the sale of the products you grow or rear; it is possible to become a sheep, pig or cow farmer with a plot of land.


If you know how the system works you can buy land and have it re-zoned to residential; dramatically increasing its value; but this is generally a more risky prospect.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.