Please note - Due to the holiday season, builders and developers may be slower than usual in responding to any queries Close

House and Land Package Pros and Cons

We’ve covered a lot about choosing a suitable house plan and an appropriate block of land. This time, let’s look into the whole package. Buying a house and land package can offer great value for families looking for a particular type of communities, such as a golf village or an eco-friendly estate, but be aware of the drawbacks before making the big decision.

house and land packages - land estate

What is a house and land package?

House and land packages are new properties sold off the plan, with a range of customisable home designs to choose from. These properties are usually situated in land estates, where property developers purchase land released by the government and set up infrastructure and facilities to create a new community.

Benefits of Buying a House and Land Package

  • Simplifies the process of buying land yourself and choosing a suitable design. The house plan is intended to suit the block with appropriate sun orientation and driveway placement.
  • Easier process. Most home buyers will enter into a land contract with a land developer and a building contract with a builder. There are two ways a home builder can simplify this process for you. The builder can wait for you to settle on the land, then conduct soil tests and feature survey, so they determine site costs and finalise the contract. Alternatively, the builder can fix the site costs to produce the building contract around the same time the land contract is ready. This method is not always applicable for all new home builds, but it is more efficient as the lender can obtain finance for both house and land at the same time.
  • Save thousands of dollars.
    • Reputable financial organisations or lenders should be able to waive some of the associated fees for both of the described situations above. You only have to pay stamp duty on the land’s value as the house has yet to be built, and you can also claim various depreciable assets including the cost of the building, the cost of the fixtures and the construction itself.


C
onsiderations in Buying a House and Land Package

Small lot sizes.

House and land packages may include attractive inclusions, but many new estates feature small lot sizes. Depending on your budget, you do have the option of choosing other available lots by the developer. Make sure the block of land will meet your needs in years to come, especially if you plan on starting a family.

Peripheral location.

New estates are often constructed in the outer suburban areas, where employment opportunities and public transport may be limited. The development may be marketed as being a commutable distance from the city. In reality, it could be two hours of driving (or more with traffic). Are you willing to withstand the long commute to work each day?

Lower yield.

Selling for profit might be difficult in the short term if your house and land package is part of a new estate. Home values in outer suburban ring usually rise at a slower pace due to weaker economic drivers and lack of infrastructure. As the developer continues to offer new homes in the neighbourhood at competitive prices, capital growth is even harder to come by.

 

After weighing up the pros and cons, if you believe a house and land package is suitable for you, the next thing to do is compare house plans and choose a reputable new home builder.

 

Related Articles:

Our Tips for Planning Your Display Village Visits

13 mistakes people make when building a new home

New Home Build Timeline: What You Need to Know

iBuildnew Advisory Team
Let us do the legwork for you.
  • We’ll ask the right questions to better understand your needs
  • We’ll create a recommended shortlist ideally matched to you
  • We’ll answer specific questions or concerns related to home building, land purchasing or financing

Joe

About

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.

You may also like

Jul 01, 2020

Available Homebuilder & Homebuyer Grants, Schem...

This article was originally posted on www.ibuynew.com.au If you’ve been thinking about ...
Read More
Apr 19, 2021

Construction Deadline For HomeBuilder Grant Extended

Saturday 17th April - The Morrison Government has announced an extension of the constru...
Read More
Oct 22, 2015

6 fun spaces to consider in your home

When planning your home, advice from the experts is that you should always have a list ...
Read More
Nov 13, 2019

Property Zoning 101: Everything You Need To Know

Before taking the exciting plunge of buying property, it is essential to be informed ab...
Read More
Dec 11, 2017

Luxury Home Inclusions That Will Set Your House Apar...

What is your home if not your very own castle? So, if you are considering building your...
Read More
Jun 15, 2018

How to get the best price from your builder

When seeking to build a new property you want to get the best value from your builder. ...
Read More
Apr 29, 2022

7 Questions Every Home Buyer Needs To Ask When Looki...

So you’re thinking about building a new home from scratch. It’s a tantalising prospect ...
Read More
Jan 15, 2016

New Home Build Inspections – Free Guide

When conducting  new home build, inspections are carried out at various stages of the c...
Read More
Feb 03, 2021

What To Look Out For In A Building Contract

Building a house is a pivotal moment in people’s lives. It is the start of a new advent...
Read More
Aug 30, 2015

De-Clutter The Jargon

So you’ve started along your journey to building your own home. You’re rolling up your ...
Read More
Dec 01, 2017

Benefits of Buying a House and Land Package from iBu...

As an investor, the decision to secure your financial future with an investment propert...
Read More
Sep 02, 2020

Buying A Property? Here Are The Inspections You Need...

We know finding your dream house can be difficult and when you finally do, it’s natural...
Read More
Aug 21, 2019

What Comes First? Buying Land or Choosing a Builder?

Building a new home is an exciting process! While you’ve probably conducted your initia...
Read More
May 17, 2017

7 Most Common Hidden Costs of Building Your Own Hous...

How much does it cost to construct a new home in Australia? The figures will greatly de...
Read More
Nov 05, 2015

New home design – Tips on choosing the right p...

Once you've narrowed down a shortlist of serious contenders, you then need to pick your...
Read More
Sep 02, 2021

The Lowdown On What To Ask When Buying A House And L...

The process of purchasing a house and land package can be daunting, especially with so ...
Read More
Sep 25, 2018

Are you ready for a custom home building project?

Are you thinking of embarking on a custom home building project? Throughout the process...
Read More
Jun 19, 2018

Working with Tradies | Guidelines and Etiquette

It is always a different experience when you work with people you don’t know - but ther...
Read More
Jul 24, 2018

Questions To Ask Your Builder For Your New Builds

Finding the perfect builder for you and your building needs can seem like an impossible...
Read More
Mar 30, 2018

The New Home Building Process

You’ve finally decided on your new home design. Congratulations! This decision can be a...
Read More
Jul 05, 2017

One for the Books: Sydney’s Greatest Housing Constru...

There is good news for Sydney: according to the most recent forecasts by the New South ...
Read More
Sep 02, 2021

How Big Should Your Dream Home Be?

We undeniably live in a world where the modern credo is ‘the bigger the better!’ But, i...
Read More
May 23, 2017

Where Do I Start When I Want To Build A House?

At iBuildNew we are passionate about providing expert and personal advice for free to h...
Read More
Jun 06, 2017

Everything You Need to Know Before Building a House ...

Want to make your dream home a reality? Then this guide, designed for home buyers in Au...
Read More

Get more from

Browse New House Designs