Tips for Buying a House and Land Package

Homes packaged with the land they’re to be built on are called House and Land Packages.

Below are a few tips to consider when purchasing a House and Land package:

Types of Packages

1. You purchase the land before the house is built

When buying the land first you will have to pay a deposit, of generally 10% of the purchase price, with the balance on settlement. This way you will only pay stamp duty on the land, rather than on the construction of the house.

In this structure, you will need two home loans – one for the land and one for the construction. Progress payments on the mortgage will need to be made at different stages of construction.


2. You buy the house already completed on the developers’ land.

If you decide on this option, all you need to do is give a 5% deposit, with the rest once the home is completed. There are no progressive payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the home loan.

Research your location and developer

  • What experience have they got and how long have they been in business?
  • How many packaged homes have they sold?
  • Get referrals, and ask the owners if they were satisfied with the workmanship.
  • Check on appropriate builder’s warranty and insurance cover.
  • Check if they offer a fixed price building contract, so you aren’t left with unexpected fees.

Selecting a Display Home

  • Walk through various display homes to compare designs and costs, along with workmanship and quality of materials.
  • Pay attention to the detail and finish of the home, such as painting, carpentry and tiling to check whether they are of a high quality.
  • Would you like to change a particular aspect of the house? Find out the extra costs involved and compare these with the price of the original design.
  • Ensure that all features, services and materials are listed in the contract, such as letterbox, driveway, clothes line, flooring etc.