If you’ve dreamed of owning your own home for an affordable price, then you may be looking at purchasing a house and land package. Home and land packages are typically offered with a range of home designs on a vacant block of land. The most common method of sale is the purchase of land and later beginning construction of your home.


Because these homes are yet to be built, many investors and first home buyers choose home and land packages because they can be customised with their needs in mind. For example, a first home buyer with a family may value a large house with 2+ bedrooms, whereas an investor may want to build a duplex to increase rental yields. With home and land packages, these options are available!


According to LJ Hooker, “A house and land package generally provides better value than an existing house in the same area. On average it costs about 14% less than a move in ready property.” When you buy a home and land package, you’ll be able to save yourself money; on a $650,000 home, 14% less works out to $91,000 dollars in savings. 

Maintenance Costs

Moreover, new properties are much less likely to require hefty maintenance costs in the near future, which allows you to plan your costs in a more controlled manner. Additionally, some builders will provide maintenance and warranty periods, further reducing the risk of getting stuck with expensive repair bills.

How is it different from any other purchase?

When buying a home and land package, financing will need to include two transactions. 

  1. The purchase of land requires a standard mortgage. 
  2. Organising finance for construction requires a construction loan. This involves drawdowns from the loan as the building progresses, and typically involves interest repayments throughout the building process.

Typically, reputable lenders will bundle both the land and construction loan together to reduce the complication of organising finance. 

Things to keep in mind!

Additional Costs

Changes to the standard design, such as material changes, can add up quickly! Different builders have a different list of inclusions. Ensure that you understand what is included in the construction of your home.

Keep Track of Receipts Paid with Deposit Money

Another consideration is to understand how your deposit will be used. Some lenders will require that you pay invoices with your deposit before they will release funds from the construction loan. This will typically require proof of payment, so ensure you save you invoices and receipts!

Set Money Aside for Unexpected Costs 

Finally, it is always smart to have money set aside in case of unexpected costs that may arise through the construction process or issues with financing shortfalls. Speak with your lender and builder before signing any contracts to discuss any potential issues that might arise!

The First Home Owners Grant (NSW)

If you’re planning on buying a home and land package in New South Wales and the combined value of the home and land are under $750,000, then you may be eligible for a $10,000 grant. See Revenue NSW’s website for more details. If you reside outside of NSW, check your state government’s policies.

Stamp Duty Exemptions (NSW)

Additionally, in New South Wales first home buyers are eligible for stamp duty exemptions on homes values at $650,000 or less, and stamp duty concessions for homes valued under $800,000. See the NSW’s government website for more details. If you reside outside of NSW, check your state government’s policies.