Buying a plot of land to build a home offers several advantages over purchasing a ready-built property, especially for those who value customisation and investment potential, however, there are also several costly mistakes and potential pitfalls which need to be avoided to reap all the rewards of building your own home.

According to Claude McKirby, Lew Geffen Sotheby’s International Realty Co-Principal in Cape Town’s Southern Suburbs and False Bay, one of the biggest advantages of purchasing a plot is the ability to design and build a home tailored to your exact needs and preferences

“With a ready-built home, you’re limited to the existing layout, design and features, which may not fully align with your vision whereas building from scratch allows you to choose the architectural style, floor plan, materials and eco-friendly features such as solar panels, rainwater harvesting or smart home technology.”

Another key advantage is better quality control because, when buying a home, you have little insight into the quality of construction, materials used or the builder’s attention to detail.

“By constructing your own home, you can ensure high-quality materials and workmanship, thereby reducing the risk of future maintenance issues and costly repairs. You can also implement modern building techniques that improve energy efficiency, durability and long-term cost savings.”

Although building a home requires an upfront investment, McKirby says that, in the long run, it can often be more cost-effective than purchasing a completed property.

“You can control expenses by selecting materials and finishes that fit your budget, avoiding unnecessary renovations and choosing energy-efficient solutions that lower utility bills. Additionally, in many cases, land costs are lower than fully developed properties allowing for a more affordable entry point.

“And, as pre-built homes can come with hidden issues such as outdated plumbing, electrical systems, or structural wear and tear that may not be apparent at first glance, with a new build, you avoid these concerns and start with a fresh, high-quality foundation.

“Buying a plot also gives you the freedom to choose a location that best suits your lifestyle, whether it’s a peaceful rural setting, a developing neighbourhood with future growth potential or a scenic waterfront stand. This flexibility is often not available with pre-built homes, which are often constrained to established, high-priced areas.”

He adds that a well-chosen plot in an up-and-coming area can appreciate significantly over time, often outpacing the value growth of pre-built homes in saturated markets and since a custom-built home is designed to fit modern needs, it can command a higher resale value compared to older homes that may require updates.

Overall, purchasing land and building your own home can provide unparalleled control, financial advantages and long-term benefits that make it a compelling option, however the process is not as simple as one might think, and making the wrong decisions can lead to costly and frustrating mistakes.

Mckirby says that to ensure a smooth process and rewarding experience, it's crucial to be aware of common pitfalls:

1. Failing to Research Planning Permissions

One of the biggest mistakes buyers make is assuming they can build whatever they want on their chosen plot. However, local zoning laws and planning restrictions can significantly impact what can be constructed so before purchasing, check with the local planning authority to ensure that the land has the appropriate permissions for your intended use.

Also, confirm whether the plot is within a conservation area or has any building restrictions that could affect your project.

2. Not Conducting a Thorough Land Survey

A professional land survey is essential before buying a plot. A survey will confirm the exact boundaries of the property, identify any encroachments, and highlight potential issues such as flood risks, soil stability, or underground utilities. Neglecting this step can lead to legal disputes or additional costs down the line when unexpected problems arise.

3. Overlooking Access and Utilities

A plot might look perfect, but if it lacks proper access or essential utilities like water, electricity, and sewage, the cost of development could be significantly higher than anticipated.

Always check if the plot has an existing right of way, whether roads are public or private, and how much it will cost to connect utilities. Sometimes, adding these services can be prohibitively expensive, making an otherwise attractive plot unfeasible.

4. Ignoring Soil and Ground Conditions

The type of soil on your plot can have a major impact on construction costs. Certain ground conditions, such as clay, peat, or rocky terrain, can make building more challenging and require additional engineering solutions. Conducting a soil test (geotechnical survey) will help determine the foundation requirements and prevent unexpected expenses or construction delays.

5. Failing to Budget for Hidden Costs

Buying a building plot involves more than just the purchase price. Additional costs such as legal fees, planning application fees, surveying costs, land clearance, and construction expenses can quickly add up. Additionally, some plots may be subject to additional taxes or community charges so make sure you calculate all potential costs before committing to the purchase to avoid financial strain later on.

6. Not Considering Future Development Plans in the Area

A quiet rural plot today might be in the middle of a busy commercial area in five years. Researching future development plans in the area is crucial to ensure your investment aligns with your long-term goals. Check local development plans to see if major infrastructure projects, highways, or commercial developments are planned nearby. Such changes could impact property value, noise levels, and overall desirability.

7. Rushing the Decision Without Professional Advice

Excitement and urgency can lead buyers to make hasty decisions, especially if a plot appears to be a great deal. However, purchasing land is a significant investment that requires careful evaluation so consulting professionals such as architects, surveyors, solicitors, and local real estate agents can provide crucial insights and help you make an informed decision.

Taking the time to seek expert advice can prevent costly mistakes and ensure a smoother purchasing process.

“Ultimately, buying a building plot can be a rewarding investment, but it requires due diligence. By avoiding common mistakes and implementing a strategic approach, you can save yourself from unexpected headaches and financial losses and turn your dream property into a reality,” concludes McKirby