5 Things to Check Before Buying a Block for KDR

Spotting a rundown house in a good suburb and thinking "KDR opportunity" is exciting — but before you sign a contract, here are five checks you should never skip.

1. Minimum Lot Size

Every council has a minimum lot size for a dwelling. If your block is too small, you may not be able to build. More importantly, check the future subdivision potential — if the block is large enough, you may be able to do a dual occupancy or Torrens title subdivision, which dramatically changes the economics.

What to do: Look up the LEP zoning on the council's online mapping tool. The minimum lot size is specified in the LEP.

2. Heritage and Conservation Area

As covered in our heritage article, these overlays add complexity and cost. Always check the council's heritage map before buying. Some agents won't volunteer this information unless asked.

What to do: Enter the address in the council's planning portal and look for any heritage flags. Also check for Aboriginal Cultural Heritage overlays in some states.

3. Flood and Bushfire Overlays

These affect what you can build, how high your floor must be, what building materials are required, and whether insurance is affordable after completion. Flood-affected properties often require the finished floor level to be 500mm above the 1-in-100-year flood level.

What to do: Check council flood maps and the NSW Flood Check, VIC Land Vic, or equivalent state tools. For bushfire, check the Bushfire Attack Level (BAL) rating.

4. Easements and Covenants

Easements — for power lines, drainage, or sewer — run across many blocks. Building over an easement is generally prohibited without special permission. Similarly, restrictive covenants on the title can specify things like minimum house size, materials, or even that only a single-storey home can be built.

What to do: Read the title documents carefully and have a property solicitor review them. This is non-negotiable.

5. Contamination and Asbestos

Older properties (pre-1987 in Australia) may contain asbestos in fibro sheeting, roofing, or floor tiles. Contaminated land — particularly near former industrial sites, petrol stations, or dry cleaners — adds significant remediation costs. Some sites may be uneconomic to develop without remediation running into hundreds of thousands of dollars.

What to do: For older homes, budget for an asbestos assessment. For any property near former industrial use, request a Phase 1 Environmental Site Assessment before proceeding.

The Bottom Line

Run each of these checks before going unconditional on your contract. The cost of due diligence ($500–$2,000 across all checks) is trivial compared to the cost of discovering a problem post-settlement.