The homestead should be central to the property to allow convenient access to all parts of the property and preferably with a view of the property. It should be close enough to farm buildings for convenient working and ready access to equipment during emergencies. There should be a firebreak around the homestead and sheds used for storing petrol, kerosene and other combustible substances must be isolated from other buildings.

The homestead is made more pleasant if surrounded by trees for provide shade and shelter and as windbreaks. The building should be efficient and neat only as there is no extra value for luxury fittings which may be economical in a city. Large old rambling homesteads often require high maintenance and there are examples of attractive, old and large homesteads being left empty as the owner lives in a nearby smaller, modern and more economical cottage. In such cases the old homestead has zero value as it is detriment to the property.

However, if near a large town or city the urban influence may add a great deal of value to such a building. Cottages with weatherboard/corrugated metal walls and corrugated metal roofs are quite popular and often the best type of structure in rural areas.