Buying a block – 3 things I learned from my first build

1. Get advice
You might think the first step to buying a development block is to look on the internet at the real estate sites. You can definitely do that, but before you even consider putting in an offer or bidding at an auction, you need to get advice about which entity will buy the block. What I mean by that is which legal entity will be on the contract. Are you going to set up a company? Are you’re going to buy it personally? Are you going to do a joint venture with friends, or with the building contractor? It’s not my place to advise or speculate on what the best option is, that’s something that you need to talk to a lawyer and your accountant about at the very start of the process.

2. Consider the local planning rules and regulations
In the past, ACT Planning and Building regulations had meant that you couldn’t build more than one dwelling on a block less than 800 square in certain residential areas. With the introduction of the missing middle changes to the ACT Territory Plan, that criteria now not such as issue. However, there are still heritage overlays and other planning considerations that you should think about when looking at potential development sites.
One important consideration if you are planning on more than one dwelling on the block, is whether you are able to subdivide, so that each dwelling stands along. If not, you may be able to strata title the final properties, which would mean the new owners need to form or appoint a strata manager and comply with certain rules.

3. Solar orientation and aspect
In a city like Canberra, with huge extremes in temperature, one of the most important things when looking at a block, I believe, is solar orientation. I generally look for a block that’s oriented with north to the rear. While this isn’t critical, as a good architect can make any solar aspect work, with north to the rear you are able to design the house with living areas at the back, looking out onto the backyard.
Other architectural to consider are the shape, dimensions and fall of the block. Is the block relatively square in size so each dwelling can be allocated around the same sort of outdoor area? Is the block wide enough? Does the back slope away which would result in the back yard being below the living areas – if you’re planning to put in a pool, being able to see the kids swimming from the kitchen bench is a good selling point.

Some real estate agents believe that developments that have the dwellings stacked behind each other are less desirable than dwellings side by side. So, if you’ve got a choice between a long skinny block and a wide block, you’d generally go for the wide one.

A final thought about the streetscape
When you’re looking at buying a block to develop, an important consideration is “what is the streetscape going to look like when you have finished?” Is the block in an area with big houses and large yards, so a group of townhouses or small apartment block is going to look out of place? I honestly believe you need to visualise the final outcome and ask yourself “does this fit in to the suburb and the streetscape? Is it somewhere where I would live, where I would want my friends live? Is this project commensurate with the location?” If it’s not, then really that’s not the right block, or conversely, it’s not the right project for that location.

If the block you are looking at meets most of these criteria, it’s time to move on to the next critical step – feasibility.