Frequently Asked Questions

What is a home and land package?

home and land package is an offering that includes a brand new home and the land that it is built on.  Typically, the homes are not yet constructed, allowing you more flexibility in your choice of where to live and in what home design.

How does a home and land package work?

Finance for a home a land package typically requires a regular mortgage to purchase land, and then a construction loan to build your home. Reputable lenders will bundle this into one mortgage which is often called a construction-home loan.

What are the first home buyer benefits of home and land packages? (NSW only)

The First Home Buyers Assistance Scheme (FHBAS)

To increase homeownership, the NSW state government offers full or partial stamp duty exemptions, which can save you tens of thousands of dollars! The FHBAS applies to existing-dwellings as well as vacant land which is intended to be built upon.

Conditions for existing dwellings and new homes:

  • If the home is valued at less than $650,000, you can apply to receive a full stamp duty exemption
  • If the value of your home is valued between $650,000 and $800,000, you can apply to receive a concessional stamp duty rate

Conditions for vacant Land (Home & Land Packages)

  • If the land is valued at less than $350,000, you won’t have to pay any stamp duty
  • If the land is valued between $350,00 and $450,000, you will be eligible for a concessional rate

The First Home Owner Grant – New Home (FHOG)

The FHOG is a lump sum of $10,000 payable to first home buyers purchasing brand new or constructed homes. Typically, you’ll be able to apply for the FHOG when you arrange a mortgage through your lender.

To qualify, the purchase price of your new home must be no more than $600,000.

If you’re buying a home & land package, the total price – including the land and home – must be no more than $750,000.

When you complete your purchase, or you have begun constructing your home, you’ll have to send your application to Revenue NSW. This must be done within 12 months of settlement or construction completion.

For more details on the NSW government’s first home buyer schemes, visit their website here

Do house and land packages include landscaping?

This depends! When you enquire about a home and land package, ask to for the inclusions!

Most home and land packages will not include landscaping. If they do, they are typicaly limited in scope. 

Is it cheaper to buy or build a house?

Typically, building a home allows people to save more money than buying an existing home. According to LJ Hooker, a home and land package costs around 14% less as compared to an equivalent existing home (although we believe this estimate is likely to be slightly high).

However, when people purchase home and land packages from unscrupulous vendors, they may be hit with commissions over and above common agency comissions. Don’t be afraid to inquire about built-in commissions!

How much does it cost to build a house on your own land?

If you already own vacant land, you may be interested in building your own home. Build prices vary widely based on what you’d like built on your land. Reach out to Ownago if you’d like to explore your options and we will provide an indicative build quote!