What Comes First? Buying Land or Choosing a Builder?

Building a new home is an exciting process! While you’ve probably conducted your initial research, considered your options and prepped the standard list of questions, when it’s time to getting the ball rolling, it can be difficult to know where to actually begin. There are many advantages to buying the land first and choosing your builder after, but to help you make an informed decision, we’ve outlined the key points you need to know when deciding which initial step to take…

building a new home

The upsides of buying the land first

1. Lot discovery support
There’s a range of services available to help you find the perfect block of land. From locating the right lot in a location you love, to inspecting it and providing guidance on the slope, orientation and vegetation, buying the land first means you can approach the task of finding a builder from an informed position. The additional information that comes with this step is a great advantage when sourcing a builder!

2. Better terms
When you consider the financial perspective, buying the land first can sometimes be the better option. Factoring in the cost of land and construction, it’s often easier to secure a loan that covers the full building expense this way. Since stamp duty is payable on the land’s purchase price, you can minimise borrowing costs by arranging for settlement to occur at the same time as building plans are approved by the council.

3. Greater control
Unlike a house and land package, buying land separately, and before you choose a builder, allows you to pick the exact lot you want from an often far wider selection. The freedom to choose a suitable block and customise your home accordingly is one of the key perks of buying the land first. After all, a house is an expensive investment, you might as well get exactly what you want with your money!

building a new home

The upsides of choosing a builder first

1. Less upfront equity
The decision to buy the land first means a larger investment and, by extension, more cash upfront. Depending on your financial freedom, choosing a builder first could be the better primary step towards building a new home.

2. The design process
The advantage of choosing a builder first is that you get to make many of the more interesting and creative choices early on. This reduces the risk of buying a lot that’s too small to accommodate your dream home!

3. Details
Buying land before you’ve worked out what type of home you want and who to build with can sometimes feel a little overwhelming. With more insurance and code concerns to initially consider, it’s easy to get lost in the fine print and lose sight of the bigger picture. Your builder can provide in-house support and recommendations as to the best companies and lenders to deal with from the beginning of the process.

The bottom line
While options are great first steps towards building a new home, like every choice they come with their downsides. Whether you select a builder first and then buy land, or vice-versa, it’s important that you make a decision that takes into account your financial circumstances and design preferences.

How can iBuildNew help?
Start your journey to building a new home with iBuildNew and shortlist and compare house and land packages as well as land estates side-by-side. You can explore our builders and developers page to find out important information about guidelines, masterplans and where to find display homes! You can book a call online or reach one of our experts at 1800 184 284 to discuss further options.

Kaylah Chesson

Kaylah is completing her final year of a Bachelor of Arts / Bachelor of Laws degree at Deakin University. Her particular areas of interest include property and land law, home design and the creative arts.


iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

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