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Victoria | Lydian platform, delivered in partnership with Clark Finance Group
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Reservoir is one of the largest suburbs in the inner north and one of the last with genuinely large blocks close to the city. Post-war homes, three train stations, and a market that has changed dramatically over the past decade.
Land is the Reservoir story. Blocks here are frequently six hundred square metres or more, which in a suburb this close to the city is unusual and valuable. A great deal of what happens in Reservoir is driven by that: subdivision, townhouse development and knockdown rebuilds.
For owners, that means the equity position may be considerably better than expected. For buyers, it means a house on a large block often costs more than the house alone would justify, because the land carries development potential.
Reservoir also remains a genuine first home buyer market, though less so than a decade ago. Scheme eligibility often applies here, and with three stations across the suburb there is real variation in price depending on which part you are looking at.
Large blocks close to the city. Funding depends on planning outcomes rather than current use.
Prices in parts of the suburb sit within the caps. That can remove mortgage insurance entirely.
Price varies meaningfully across the suburb. We establish what your budget reaches where you are looking.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
For a small development of two or three dwellings, often through a construction loan assessed on the planning permit and projected end values. Beyond that it moves into development finance, which has different terms, a larger deposit and usually requires presales. The threshold varies by lender.
That is a planning question rather than a lending one, and it depends on zoning, minimum lot sizes, existing structures and council policy. Get planning advice first. Once you know it is feasible, the funding is assessed on the permit and projected values rather than on the current single title.
Only to the extent it increases the valuation, and valuers assess current market value rather than development upside. So a large block is worth more, but a standard home loan will not advance against what it might become. Development potential only counts if you are seeking development finance.
Less so than it was, but parts of the suburb remain within reach and within scheme thresholds, particularly units and townhouses and the areas further from the stations. It has changed considerably, so it is worth getting a current picture of your capacity rather than working from what you heard a few years ago.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
Book a free consultation
Serving clients across Australia.
Authorised Representative no. 525 778
Specialist Financial Group Australian Credit Licence no. 387025
Lydian Financial Services Victoria
Suite 1/103 Grimshaw Street, Greensborough VIC 3088, Australia
Level 12, 15 Collins Street Melbourne VIC 3000, Australia
Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.