Things To Know Before Buying A House And Land Package

There are so many ways to achieve building the home of your dreams and house and land packages are one of them. Do you want a way more affordable and straightforward process than the rest? Looking to build the forever home of your dreams but find the whole process confronting? Then house and land packages could be the answer you have been looking for.  

We hope this can help provide newfound knowledge on how to better navigate your home-building journey.  

What Is A House And Land Package?

Although it may seem self-explanatory – it is a deal in which a buyer acquires both land and a house. But there is much more to house and land packages than meets the eye. A house and land package combines both home and land loans into one process, ultimately being a more affordable option when it comes to building a home versus doing it by any other means. 

House and land packages are becoming increasingly popular because those who are wanting to build their homes can now know the combined price of their home and land from the outset. 

Someone looking to build their future home using a house and land package essentially purchases both land and house from the builder, however, there are some instances where the purchaser can purchase their package from two different entities; the land will be bought from the developer and the home will be bought from the builder.  

How Do House And Land Packages Work?

House and land packages work as a sort of two-for-one agreement. It is a singular process which consists of two separate contracts. Often, new homes are built by developers who acquire the land once released by the government. Infrastructure is laid down such as water, roads, sewage and more and then usually one of the following two; pre-building homes and selling them as an existing-home and land deal or offering access to builder options. Those that offer builders to help build your home from scratch often come with several customisable home-designs, so that you can choose the block of land and the features of the new home. 

A benefit of house and land packages is this customisability, so you can tailor your home to your wants and needs.  

Advantages And Disadvantages Of House And Land Packages

Like any option you may come across on your journey to home-buying or home-building, there are benefits and corners. It is wise to take both into consideration when coming to your final decision; 


House and land packages are secure and easy. They are a simple way of avoiding negotiations around section-purchase and having to juggle working with the council, builders and designers.  

Purchasing both house and land from the builder, you don’t need a separate mortgage for the land, only the full package, so you only need to renegotiate once you begin your build. Since you’ll know the costs of the build beforehand, you will be more aware of how much to ask from lenders, which is preferred by them.  

House and land packages that have design options available are cost-effective and less likely to run over price than a bespoke design. Construction companies building similar designs have a better idea of what costs will amount to and bill you accordingly.  


Location choices are limited with house and land packages. These packages are usually based within housing developments which are located on the outskirts of cities. It can be inconvenient and out of the way for those working in the inner city.  

Sections in new developments can be smaller than what you were anticipating or wanting. Property developers often want to maximise the most of the space they have, so make the land sections smaller to accommodate more people moving into the area. This may limit the design choices you envisioned.  

Newer neighbourhoods mean missing out on the character, history and personality of older established areas. Even with the trees surrounding the community, they won’t be expected to be fully grown for many years to come.   

What Is The Difference Between Turnkey And House And Land Packages?

A common misconception by homebuyers is that there is little difference between turnkey properties and house and land packages. For starters, turnkey homes are built first by builders and then sold as a finished product. This is a typical first choice for those willing to settle for a location over the house they want and is a very quick and easy way of buying a new home. 

House and land packages bring together a block of land and a home design for a fixed price. It’s an easy way to get into building a new home and allows for more creative agency over the outcome. This is a great choice for those who are interested in building the home of their dreams and are not bothered by the lack of an inner-city location.  

How To Buy A House And Land Package

Buying a house and land package requires the purchase of land off a developer and then the selection of a builder to start the home-building process, or a full house and land package from the builder.  

Your first step will be to choose a builder that offers a house and land package that best suits you. These agreements can differ between builders, as well as your preferred location and build-spend. So, get studying, learn about your options and use your preferences as your guidelines to help you make your decision.  

Make sure to check up on the builders you are looking to work with. It is important you understand what to expect from those building your home. This means doing a background check including license-checks, visiting current projects of theirs, seeing if they checked the land for suitability and seeing whether they have builder’s insurance is recommended.  

You will also benefit from visiting show homes beforehand to get an idea of what it is you truly want out of your forever home. Many builders have these available for viewings so future customers can visualise the builds they want to achieve.  

Factoring in taxes and other costs not included in the house and land package will also work in your favour. Typically, these extra pricings such as registration fees and stamp duty will need to be budgeted for prior and aren’t typical within any house and land packages. The customers are responsible for the set-up of utilities such as electricity and phone providers and arranging those connections. This may seem intimidating, but it is straightforward; you must maintain the land you own and live on! 

Finally, get legal support to look after all documents before you sign. Get your solicitor to check the contract for warranties, insurance, plans, other crucial specifications, and any points of difference which may come up further down the road. 

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