Why This Beachside Bargain Could Have Been a Million-Dollar Blunder
- Aly Walsh
- Aug 4
- 3 min read
Finding a big block near the beach sounds like the dream, right? Especially when it’s priced attractively and has that golden potential for a second dwelling or future development. That’s exactly what we thought when a promising property came across our radar recently. Located in a coastal pocket with a mix of original homes and a few newly built second dwellings, the site seemed full of potential. The yard had been cleared, paving removed, a tree cut down—everything pointed to someone preparing for development.
But something wasn’t adding up.
Not all the neighbouring large blocks had second dwellings, and some were still sitting vacant. That piqued my curiosity. Why had they not been developed yet? In a high-demand area so close to the beach, this lack of activity didn’t make sense—unless, of course, something was stopping it.
A buyer’s agent doesn’t just find “good looking” properties—we dig beneath the surface.
That’s where trusted advice comes into play.
I brought in one of my go-to professionals, someone with deep experience in overlays, planning restrictions, and the invisible roadblocks that can make or break a purchase. Together, we took a closer look—and what we found was eye-opening.
There was a critical planning overlay on the property. Not just any overlay, but one that gave Melbourne Water (the Victorian water authority) the final say over what could or couldn’t be built. That meant even if council zoning allowed for dual occupancy or additional dwellings, none of that mattered unless Melbourne Water approved.
And in this case? They hadn’t.
In fact, my contact was able to confirm that the other vacant blocks hadn’t been developed for the very same reason—they had not received permission to build due to flood-related overlays and infrastructure restrictions. That clean-looking, vacant land wasn’t a canvas for your dream build. It was effectively frozen in time.
Had my client gone ahead with this purchase, they would have paid around $950,000 for the house and land. Add stamp duty and purchase costs, and the total would have crept over $1 million. All with the belief that they could eventually build another dwelling or redevelop.
To learn, only too late, that no further construction would be allowed?
That’s not just disappointing. That’s a potential million-dollar mistake.
It’s situations like these that show why buyer due diligence is absolutely critical. A buyer’s agent doesn’t just find “good looking” properties—we dig beneath the surface. We ask the questions others don’t even think to ask. We engage with planning experts, overlay specialists, and local authorities. Because flashy marketing and cleared backyards can hide significant barriers to future value.
In this case, the agent hadn't disclosed the overlay. Most buyers wouldn’t know where to start investigating. And from the outside, there were no obvious signs. But the cost of not digging deeper could have been catastrophic.
What looks like a hidden gem can sometimes be a financial trap dressed up to sell. That’s why it's so important to understand overlays, restrictions, and the real potential of a property—not just the hype.
We walked away from that deal. And I’m proud we did.
Because while it’s easy to get swept up in the emotion of “what could be,” my job is to focus on the reality of what actually is. That decision saved my client from heartbreak—and a very expensive lesson..
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*** Disclaimer: The information provided in this blog is intended for general informational purposes only. While we have made every effort to ensure the accuracy and reliability of the content, it should not be considered as personalised or professional advice. The homebuying process can vary based on individual circumstances, property types, and location-specific regulations.