Buying Land for a Modular Home? Why the Cheapest Block Can Cost You More

Finding a cheap block of land can feel like striking gold. Two blocks might be located in the same suburb, yet one could be tens of thousands of dollars cheaper than the other.

Sometimes there is a very good reason for the difference.

The purchase price of the land is only one part of the overall cost of building a home. The slope of the block, soil conditions, bushfire requirements, planning overlays, access, services and even the ability to physically deliver a modular home to the site can all affect the final project cost.

That doesn’t necessarily mean a cheaper or more difficult block is a bad purchase. In fact, some challenging sites can be particularly well suited to modular construction.

The important thing is understanding why the land is cheaper before you buy it.

 

 

The Cheapest Block Isn’t Always the Cheapest Place to Build

When comparing land, it is easy to focus on the advertised price.

A better comparison is:

Land price + site costs + home cost = the real project cost.

A flat block with straightforward access may cost more to purchase but require relatively simple foundations and minimal site works. A cheaper block with a significant slope, difficult soil or restricted access may need additional engineering, earthworks, retaining walls or specialised foundations.

Neither block is necessarily better than the other. You simply need to compare the complete picture.

 

 

1. The Fall or Slope of the Block

One of the most obvious reasons a block may be cheaper is its slope.

Flat and gently sloping sites are generally attractive to builders because they can often accommodate relatively straightforward construction. As the fall across a block increases, additional work may be required.

Depending on the site and building design, this can include:

• Excavation and earthworks
• Cut and fill
• Retaining walls
• Additional drainage
• Longer or specialised footings
• Engineering
• More complex driveways, stairs and landscaping

However, a sloping block doesn’t automatically mean you need to flatten the entire site.

This is one area where modular construction can offer an advantage.

Depending on the home, site and engineering requirements, modular buildings can potentially be installed on piers, piles or engineered steel footing systems. This can allow the home to follow the natural terrain and reduce the amount of excavation compared with trying to create a completely flat building platform.

A sloping block may also provide better views, privacy or a more interesting home design.

The question isn’t simply, “Is the block sloping?”

It is, “What will it cost to build on this particular slope?”

 

 

2. Soil Conditions

You can’t tell everything about a block by looking at it.

What is underneath the ground can have a major impact on construction costs.

Soil can vary considerably between sites. Highly reactive clay, loose fill, unstable ground and other soil conditions may require a different footing design than a site with more favourable conditions.

A soil test and site-specific engineering are therefore an important part of planning a new home.

Modular homes are no exception. While much of the building may be manufactured off-site, the foundations still need to be designed specifically for the conditions where the home will ultimately be installed.

3. Rock Can Be Good and Bad News

Rocky ground may provide a stable base in some situations, but it can also make excavation expensive.

Trenching for services, drilling foundations, installing drainage or creating a building platform can become significantly more complicated when substantial rock is encountered.

This is another situation where minimising excavation through an appropriate footing system may help, although every site needs to be assessed individually.

It’s worth investigating what is below ground before assuming that a visually appealing block will also be easy to build on.

 

 

4. Bushfire Attack Level – BAL

Bushland properties can offer privacy, space and beautiful surroundings, and they can sometimes be considerably cheaper than more developed residential land.

However, land in a bushfire-prone area may require additional consideration.

A Bushfire Attack Level, commonly referred to as a BAL rating, helps determine the potential exposure of a building to ember attack, radiant heat and direct flame contact during a bushfire.

BAL classifications range from lower-risk conditions through to BAL-FZ, or Flame Zone.

Depending on the applicable BAL rating, a home may require changes or upgrades to elements such as:

• Windows and glazing
• External doors
• Ember protection
• Roofing
• Wall cladding
• Decking
• Subfloor construction

The important point is that a modular home can still be designed for many bushfire-prone locations, but the required construction specification may differ from the standard version of the home.

Before comparing the price of a bush block with another piece of land, it is worth understanding the BAL requirements and what they could mean for your proposed home.

 

 

5. Planning Overlays and Other Restrictions

Some of the most important constraints on a block aren’t visible when you’re standing on it.

Depending on your state, territory and local council, land may be affected by planning controls relating to:

• Bushfire risk
• Flooding or overland flow
• Landslip
• Coastal hazards
• Vegetation protection
• Heritage
• Environmental considerations
• Infrastructure
• Easements

An overlay does not necessarily mean that you cannot build.

What it can mean is that there are additional rules, assessments or design requirements that need to be understood before construction begins.

For example, a flood-affected site might require a home to be elevated above a particular level. A vegetation overlay might limit where the house can be positioned. An easement could reduce the usable building area despite the overall block appearing quite large.

These issues can influence both the design of the home and the cost of developing the site.

 

 

6. Flooding and Drainage

Low-lying land can sometimes appear attractively priced, but flooding and stormwater movement should be investigated carefully.

Depending on local planning requirements and the level of risk, a home may need to be raised, additional drainage may be required or parts of the property may not be suitable for building.

Raised modular construction can potentially be a good fit for some sites because the home does not necessarily need to sit directly on a slab at ground level.

However, modular construction does not override flood planning requirements. The site still needs to be assessed and the foundation system appropriately engineered.

7. Services Can Add Up Quickly

A large regional or rural block can look extremely cheap compared with land in an established estate.

One reason may be that essential services are not readily available.

Before purchasing land, investigate how the proposed home will connect to:

• Electricity
• Water
• Sewerage or septic systems
• Stormwater
• Internet and telecommunications

If services are located a long distance from the proposed building site, connection and trenching costs can increase.

On more remote properties, you may also need to consider tanks, septic systems, pumps, additional electrical infrastructure or off-grid solutions.

Again, the low purchase price of the land doesn’t necessarily mean it is poor value. It simply needs to be assessed as part of the total project.

 

 

8. There’s One Major Issue That’s Particularly Important for Modular Homes: Access

With a conventional build, trucks need to deliver materials and trades need to access the site.

With modular construction, there is another question:

Can we physically get the completed modules to the property and into position?

Modular homes are manufactured in sections before being transported to site. These sections can be large, so the delivery route and the property itself need to be assessed.

Potential access issues can include:

• Narrow roads
• Sharp corners
• Steep roads or driveways
• Low bridges
• Overhanging trees
• Powerlines
• Restricted entrances
• Soft or unstable ground
• Limited space for trucks to manoeuvre

The distance between the truck access point and the final house position is also important.

9. Don’t Forget About the Crane

Once a modular home arrives on site, the modules generally need to be lifted onto their foundations.

That means there needs to be a suitable location for a crane to operate.

A relatively straightforward site might allow the crane to park close to the foundations and perform a simple lift.

A difficult site might require the crane to reach over trees, existing structures or a long distance across the property. In some circumstances, a larger crane or more complex installation may be required.

This is why site access is worth considering before purchasing land for a modular home.

A beautiful block at the end of a narrow, winding road isn’t necessarily unsuitable, but knowing about the access requirements early can prevent an expensive surprise later.

10. The Position of the Home Matters Too

Sometimes the challenge isn’t the block itself but where the home can actually be placed on it.

Setbacks, easements, vegetation, slope, flood constraints and bushfire requirements can all affect the available building envelope.

A 2,000m² block might therefore provide less flexibility than a well-positioned 700m² block.

With modular construction, the proposed location also needs to work with the delivery and crane installation process.

Considering these factors early can help determine whether a standard modular layout will work or whether the design needs to be adapted to suit the site.

 

 

So, Should You Avoid Difficult Blocks?

Not necessarily.

Some of the most interesting properties are difficult sites.

A sloping block may provide panoramic views. A bush block might offer privacy and space. A regional property might provide considerably more land for your budget.

In some circumstances, modular construction can also make these blocks more practical.

Because much of the home is manufactured in a controlled environment away from the property, the amount of construction activity required on site can be reduced. Engineered pier, pile or steel footing systems can also make it possible to work with the natural terrain rather than undertaking extensive excavation.

But modular doesn’t eliminate site costs.

You still need appropriate foundations, approvals, engineering, service connections and safe access to the property.

Questions to Ask Before Buying Land for a Modular Home

If you’re considering a block of land, particularly one that appears unusually cheap, it can be useful to investigate:

• How much fall is there across the proposed building area?
• What are the soil conditions?
• Is there rock or uncontrolled fill?
• Is the land bushfire prone and what BAL rating may apply?
• Are there flood, environmental, landslip or other planning overlays?
• Are there easements affecting the building envelope?
• Where are electricity, water and sewer services located?
• Will a septic system be required?
• Can a large truck reach the property?
• Are there narrow roads, low trees or overhead powerlines?
• Is there enough room for a crane to install the modules?
• How far is the proposed home location from suitable truck and crane access?

You don’t necessarily need every answer before you start looking at land, but the more you know before committing to a purchase, the easier it is to compare properties realistically.

 

 

The Bottom Line

A cheap block of land can still be a fantastic buy.

It might even be better suited to a modular home than a traditional construction method.

But the advertised land price shouldn’t be considered in isolation.

Slope, soil, BAL requirements, overlays, services, foundations, transport and crane access can all influence what it ultimately costs to build.

At Mr Cabins, we believe the best time to investigate these issues is before you’ve committed to a particular home or block. Understanding the site early allows you to choose a building solution that works with the property rather than fighting against it.

Considering a block of land for a modular home? Speak with the Mr Cabins team about your property, location and proposed home before you build. We can help you understand the factors that may need to be considered as part of your modular home project.