29 Oct 2026 * 7 minute read

Buying land in Australia can make sense whether you're planning to build your future residence or looking to grow an investment property portfolio. There are three main types of land: vacant land, residential land, and land bought as an investment purchase. Each comes with its own rules and considerations.

Land can be a pathway for building a future home. According to a recent Westpac Home Ownership Report^[#], 12.3% of survey respondents said they intended to purchase a house-and-land package as their first or next home.

Foreign buyers face additional complexity with Foreign Investment Review Board (FIRB) approval required.

There are also upfront costs to consider that need to be factored into your budget from day one.

Key takeaways

• Land loans typically require a larger deposit of 20%, with interest rates usually higher than home loans, and have stricter lender requirements.
• Different land types come with different zoning, access and building rules, and each state has its own property laws and transfer duties, so due diligence matters before you sign a contract.
• FIRB regulates foreign investment in Australian land and, from April 2025, foreigners are banned from buying established dwellings.
• Before you buy, it is important to understand council building deadlines, holding costs, and whether a combined land and construction loan makes more financial sense than land alone.

Types of land to consider: vacant land, residential land, and investment property

Vacant land is undeveloped land with no existing dwelling, often the starting point for owner-and-builders. In the Westpac Home Ownership Report, 6.5% of surveyed Australians nominated land or acreage as the type of property they intended to purchase.

Residential land is zoned for housing and may already have basic services connected. Either type can also be bought as an investment property, where the goal is capital growth or rental income rather than a home to live in.

Foreign buyers should note that from April 2025, foreigners cannot buy established dwellings in Australia, with approvals limited to new or near-new builds, or vacant land intended for development.

Learn more about buying land in Australia as a foreigner on the Australian Treasury government website.

Buying land as investment

If you’re buying land as an investment, consider researching capital growth indicators such as population growth, planned developments, and proximity to transport and amenities. Keep in mind land tax generally applies if the property is not your principal place of residence.

Financing land purchases

A land loan is specifically for purchasing vacant residential land and differs from a standard home loan: lenders typically require a deposit of 20%, and interest rates for land loans are usually higher than traditional home loans, as there’s no dwelling on site.

Pre-approval for a land loan helps clarify your borrowing power before you start looking, so you can move quickly when you find the right block.

When it comes to saving for a deposit, 26.2% of Westpac Home Ownership Report survey respondents expect building a deposit to be a challenge in the lead-up to purchasing their first or next property.

Explore Westpac home loans

Due diligence before buying land

Conducting due diligence is essential before purchasing land in Australia. Zoning laws determine how land can be used in Australia, so check council zoning rules and any building timeframes attached to the title.

Zoning can also affect where buyers end up looking: In the Westpac Report, 73.8% of aspiring first-home buyers agree they would purchase in a different area from the one they originally planned to buy in to secure their first home.

Site due diligence could include checking for environmental risks and utility access (water, power, sewerage), and a contract review is necessary to identify easements and zoning restrictions that could affect future development. It's also worth commissioning soil and geotechnical reports to confirm the site can support construction.

Planning to build

It is important to determine if it is best to take out a combined land and construction loan or to buy land now and build later.

Vacant land purchases may involve specific construction timeframes tied to the title, so check the fine print on the contract before you sign. Buying vacant land usually requires obtaining development approval before building, which can add time to your plan and interest rate fluctuation risk.

Budget for siteworks, such as clearing and levelling, along with unexpected site costs, and calculate the ongoing costs including the loan interest, council rates, and insurance, which you'll pay while land sits vacant.

Costs, stamp duty, and land tax

Upfront costs could include the deposit, stamp and transfer duty, and legal and conveyancing costs. Each state in Australia has its own property laws and transfer duties, and foreign buyers may face an additional purchaser stamp duty surcharge on top of standard rates.

Ongoing property taxes include land tax and vacancy fees, and land tax generally applies if the property is not your principal place of residence. If you're buying as an investment property, model these tax implications before you commit and obtain independent advice if needed.

Where to find help

Getting the right support could help simplify the process of buying land in Australia. A local agent with land purchase experience could help you understand the market and available blocks. A conveyancer or solicitor experienced in land sales will help manage the contract and settlement, while a town planner could help assess development feasibility before you commit.

Foreign investors may face tax implications when buying land in Australia, so a cross-border tax advisor could help.

Quick buyer checklist

Here are some tips you might want to consider:

• Verify zoning and permitted land uses
• Obtain a site survey and soil report
• Secure pre-approval before making offers
• Budget for stamp duty, conveyancing and any FIRB fees
• Confirm FIRB approval if you're a foreign buyer, and check whether first home buyer exemptions apply in your state before you sign.

Buying land step-by-step

Each land buying journey is different. However, general steps include:

1. Get pre-approval and set a strict budget.
2. Calculate all upfront costs, including stamp duty. If you plan on building later, factor in construction costs and a possible construction loan.
3. Make an offer, including any necessary conditions, such as finance or due diligence clauses. Instruct a conveyancer or solicitor to review the contract before you sign.
4. All parties must undergo a verification of identity check during property transactions, so have your documents ready.
5. Sign and pay the deposit, once you’re happy with the contract and due diligence. On settlement day, the land must be registered in your name to confirm the title has transferred.

To sum up

Buying land in Australia could be one way to build your future home or grow an investment property portfolio, but it comes with its own set of rules around zoning, finance and, for foreign buyers, FIRB approval.

Understanding the upfront and ongoing costs, the due diligence required, and any building deadlines attached to the title could help you avoid surprises down the track. With the right professionals in your corner, such as an agent, conveyancer, and, where needed, a tax advisor, you can approach a land purchase with confidence and a clear plan for what comes next.