Buying a small block of land in Melbourne has become widely popular over the last 5 years. Given the fact Melbourne property prices have continued to increase, its created an affordability problem for many.
At Crest Property Investments we have seen a large take-up of buyers wanting to build a new house on a small block of land. This has allowed many new buyers to enter the market without heavily compromising their lifestyle by dedicating all of their income to a large mortgage. In the majority of cases, the land is more expensive than the build. Buying a full turn-key house and land package has been an effective way to buy as it’s easier to understand and more transparent.
How can we maximise our build on a small block of land?
There are a few alternatives to make the most out of building your own home. Here is a summary of some tips that will help.
Less land, bigger the build:
If we spend less on the land, we can consider allocating more funds to the build. One of the most effective ways to create more living space is by building a double-story house. This will require less land as the build goes up compared to a single-story home. Please note a double-story home will generally cost you an additional $50,000 – $100,000 to a single story. By reducing the land cost, you may be in a position to increase your budget for the build.
Exclude an alfresco
It is a popular feature of a home. To have your open floor plan extend outside into an alfresco. In order to create more internal building space, removing the alfresco is an effective way to maximise your build on a small block.
Get a European laundry
Laundries are a helpful area to ensure our families have clean clothes and bedsheets, however, it is a room we often spend little time in. The area is generally not practical to use as a multi-purpose room and is not an area to hang out when inviting family and friends over. Designing a European laundry is a great way to reduce any unwanted or liveable space. European laundries often look like a cupboard, linen press, or pantry. They look very appealing and many have no idea, it’s your laundry. Many apartments and townhouses have implemented this a long time ago. Houses are now including them, so you can have an extra powder room, toilet, or walk-in pantry.
Considerer a single garage
We know that many couples and families have two cars. However, including a single garage will help you spend more money on the rest of the build. In 95% of cases, a house and land purchase will have a driveway, so the second car can be securely parked in front of the garage.
Create an open floor plan
An open floor plan is the modern house design. It reduces the need of having excess hallways that aren’t liveable spaces in a home. An open floor plan is often rectangular or squared. It opens the home up, offers great natural light, while the kitchen island bench really compliments the design. Having an open floor plan will allow you to consider a small block of land.
Australians have the largest homes in the world
Australians have been building bigger homes for a long time, particularly in Melbourne. According to some recent data on housing from CommSec, RBA, the UN, and the US Census, Australia has the largest houses in the world. It’s anticipated that the average new house in Australia provides a total size of approximately 214m2, compared to other countries around the world. The United Kingdom averages 57m2 while Hong Kong is only 45m2.
Is it still worth buying a house and land package on a small block of land?
In short, we think YES! We appreciate that it’s not always your first preference, but many downsizers see this as a priority. Downsizers aren’t interested in devoting their spare time to garden maintenance while first home buyers are often too busy developing their working careers to devote additional attention to their garden. From an investment perspective, your tax depreciation entitlement will be higher as you can’t claim it from land (it’s only from the house). Tenants also don’t want to spend their free time cleaning and maintaining a landlord’s garden.
If you have a restrictive budget, it’s a great alternative. The modern home design has become more functional than ever before while storage has also improved greatly. The days of needing a big garden shed in the back yard isn’t a priority for many people anymore.
If you’d like some help sourcing a house and land package, we would welcome the opportunity to help. We do not charge a fee to buyers and we work closely with you and the builder to ensure you have a happy and successful experience. Please don’t hesitate to contact us to learn more.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
July 2021
