Buying a block of land with the plan of building your dream home on the lot is an incredibly exciting prospect for would-be homeowners in Townsville.

While starting from scratch comes with a slew of benefits, including creative freedom, lower maintenance costs, and increased appeal for renters, there are several things that you should look out for before you jump straight in and sign a contract. From testing the soil to getting council approval, below are the hurdles that you may need to overcome.

1. Council Approval

To build a home on a block of land, the first thing you need to do is get council approval.

Queensland blocks of land can have building restrictions that can limit what and where you can build. This can include protected trees or wildlife habitat protections in the area, or not having sufficient space to meet boundary setback requirements.

When purchasing a block of land with the purpose of building a new house, it’s vital to check with the local council or a building certifier before moving forward. You need to clarify whether approval is needed, and if you’re likely to be granted planning permission for the home you wish to build.

2. Soil Condition 

Different types of soil can make construction more difficult, including very loose, unstable soil or hard soil which has become compacted. 

It’s important to get a soil test on the block of land to check that it is safe, stable, and viable for a new guild otherwise you may have to pay more to have foundations installed before building a house.

If the soil test comes back with poor results but you have already signed a contract on the block of land, in Queensland you may be within your rights to terminate the contract.

3. Sloped Land

It will be more difficult to build on your block of land if it is on an angle, and leveling it could be costly. You can check if the land is sloped by visiting the site and looking for yourself, or you can use digital tools like interactive maps. 

4. Bushfire & Flood Risk

In a bushfire or flood-prone area, council laws may say you need to build extra precautions (fireproof shutters, water systems, waterproofing). This could come at high costs and make it more difficult to secure financing from moneylenders.

5.  Location 

The old adage “location, location, location” still stands when it comes to buying a plot of land. Choosing an area in a good suburb with plenty of amenities (transport, schools, leisure) will help you to fetch a better profit if you choose to sell the home you’ve built in the future.

6. Access to Utilities 

You should check that the land is connected to utilities, including electricity, water, gas, and internet, to ensure the home you build is livable. You can do this by asking your local council to provide information about local providers and whether they service your area. 

7. Financial Considerations

When buying a block of land in Queensland, you’ll need to pay some costs upfront, including stamp duty, legal/conveyancing fees, and the deposit. 

To minimise any stress, get your finances in order before you go ahead and agree to a purchase, and get advice and approval from your bank or lender at the beginning so you know how much you can afford to spend. 

You could also get a finance clause in your contract which will allow you to pull out of the sale if you are unable to secure a loan by a specified date.

For first-time buyers in Queensland, there are grants and concessions available to lower the cost of building a new home. They include:: 

First Home Vacant Land Concession

First-time home owners can claim a full or partial concession for stamp duty when buying vacant land in Queensland.

To be eligible, you must build your first home on the block of land and live there within 2 years of settlement.

For land agreements entered into before 1 May 2025, you could save $10, 675 on stamp duty if the value of the vacant land is under $500,000. Agreements entered after 1 May 2025 may not have to pay stamp duty at all.

First Home Owner Grant (FHOG)  

First-time buyers building a new home in Queensland valued at less than $750,000 are eligible for grants.

The grants are $30,000 where foundations are laid between 20 November 2023 and 30 June 2026, and $15,000 for foundations laid before 20 November 2023. 

8. Cowboy Builders 

Building a new home is stressful enough without having to worry about whether you can trust your builder. Unfortunately, some rogue tradies are giving us builders a bad name and providing substandard services which ruin the home building experience and potentially result in extra costs for repairs or renovations.

As local builders in Townsville, the team at Keir Constructions are familiar with local regulations, environments, and design standards, and our award-winning team only sources the best materials and subcontractors to provide services that Townsville residents can trust.

For enquiries about our home building projects and where we service, contact us via email [email protected] or by phone at 07 4771 8400.

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Disclaimer: The information provided on this page is general in nature and does not constitute financial or legal advice. You should always seek independent professional advice before making any property-related decisions. Keir Constructions accepts no responsibility for how this information is used or relied upon in relation to your personal circumstances.