Real Estate

House and land packages explained.

Here at Titlexchange we like to consider ourselves experts in real estate and property law. However, when it comes to house and land packages, we are definitely not the experts. Luckily, our good friends (and experts) at iBuildNew have compiled a useful list of things to consider if a house and land package is one of your current investment options.

House and land packages explained

These packages are bought off the plan, generally with a large number of designs that you can pick from and further customise to your particular taste. These packages are mostly located in areas called land estates which are community sized areas of land that property developers buy from the government, set up infrastructure and facilities to build new communities.

Key Benefits of house and land packages

A more simplified process: When compared to sourcing and buying the land yourself, which is difficult due to the scarcity of land in major markets, as well as arranging for an architect to design your home, land and house packages make life much easier.

It’s normal for a first home buyer to enter into a building contract with their chosen builder and a land contract with the land developer. Building companies can simplify this for you by fixing the site costs and producing the building contract at roughly the same time as the land contract becomes ready. Although this option is not always possible on new-home builds, it is the most efficient way you, the lender, can lock in your finance for land and home simultaneously.

Thousands of dollars can be saved: most major financial institutions and lenders will be able to dismiss many of the associated costs in the situation mentioned above. It is good to know that you only have to pay stamp duty on the value of the land because the property has not yet been built. It is also possible to claim various depreciable assets such as the construction, the cost of fixtures and the cost of the building.

Major considerations when buying house and land packages

Small lot sizes: there are many attractive inclusions with a house and land package, but the fact of the matter is that many of the newer estates are divided into small land lot sizes. If your budget is is more mid-tier than low-tier, you may be able to negotiate a larger plot with the land developer. Be sure to think not only of your current needs but requirements you can forecast into the near future so that the current size allows you to grow.

Land estate locations

Due to urban sprawl, most new estates are developed in the outer suburban areas. Because they are young communities, infrastructure, public transport and employment can be limited. Consider the fact that you may need to factor in a longer commute to work, school, and social events.

Lower resale value

House and land packages are generally not thought of as short term profit generators. It takes time for property values in the outer suburban areas to grow. As more new land estates arise in the same area, capital growth is again limited by supply vs demand.


Are you or someone you know buying or selling a property? If so, speak to us here at Titlexchange about conveyancing. We offer an online title transfer service that is streamlined and competitively priced. We are a team of  experienced lawyers, not conveyancing clerks. That means you get to settle quicker, easier and cheaper. Find out more. Healy

Author Healy

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