What is a house and land package?

House and land packages can be a cost-effective and convenient method for would-be homeowners to build a new property. While house and land packages have been established for a long time, many Australians still aren’t entirely sure of what they’re entitled to.   

If you’re planning on buying a new home, there’s a good chance that a house and land package might be perfect for you.  

The house and land package basics

Home construction in Australia is, in many cases, carried out by developers that purchase land as and when it’s released by the government. Developers will then install all the required infrastructure, such as sewage, utilities, roads, and water supply before going down one of two likely paths:

1.The developer will build a new home and sell them to buyers as a complete house and land deal.
2.The developer will draw up standard and custom home designs to enable buyers to decide on the land area they want and the features their new home will include. 

What are the benefits?

By buying your new home in this way you can guarantee that you’ll end up with a property that suits your requirements. A house and land package also has the added benefit of being brand new, meaning, you’ll be far less likely to encounter problems or faults that require repair or maintenance work in the near future. 

How can you find a house and land package?

Developers tend to market house and land packages to buyers in a particular demographic. For example, they may be developing a retirement or eco-village and would need to find buyers interested in the lifestyle associated with their new development. However, this also extends to different groups too, such as first time or investment buyers. 

New developments are usually advertised locally or regionally, but you’ll also find them on major listing websites or by seeking out reputable developers independently. If you have the opportunity, visit other villages and homes built by any of your choice developers to examine the quality of their work for yourself. This will help give s insight into their development style and building quality.

Are there any differences compared to buying a house?

Unlike a house purchase, a house and land package consists of two steps instead of one. Firstly, you’re required to buy the land and then fund the building of your new home.

The purchasing of the land will be completed through the use of a regular mortgage. For the building, you’ll want to take out a construction loan where you will agree an amount to pay at different stages of completion. This ensures you’ll only pay interest on the money used at each stage of the process.   

While you can arrange separate loans for each step, they are often bundled into one for convenience and better interest rates.

Thankfully, many states do offer first home owner grants for buying and building new homes. In addition to this, there are also tax and stamp duty concessions, which like the grants, are often more available to first time buyers. 

Entering into a home loan is a big responsibility to take on. But, mortgage protection insurance may give you peace of mind by providing you with financial protection should a serious life event prevent you from earning an income and repaying your home loan. For more information, speak to your ALI-authorised local broker or alternatively, feel free to request a mortgage protection quote here today.

Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.