How do house and land packages work?

July 05, 2016
Gary Bieser

If you’re looking for a beautiful new home in a growing suburb, a house and land package may be the perfect option as your first property purchase.  However, there are both pros and cons to consider.


Visualise how you want your home to look

Developers will offer display homes that provide a good idea of how your new home will look.  It is here that you must try to see past the professionally designed décor and think smart.  Consider whether the layout, the number and size of rooms, and the style of home is what you really need.

There may be opportunities to customise the design to suit your individual taste.  Be certain that your builder understands exactly what you’re looking for.  Any misunderstandings may blow out the cost of changes to the master plan which is something no one wants sprung on them.

Stamp Duty Savings

A house and land package can offer savings on stamp duty.  Stamp duty will only be levied on the value of the vacant lot you buy.  This is a huge benefit for first home buyers, and as an added advantage, you will meet one of the key qualifying criteria of the First Home Owner Grant (FHOG) as many states and territories now only offer the Grant on newly built homes.



Public transport and amenities

On the downside, house and land developments are often located in outer suburbs.  Be quite sure you are comfortable living a fair distance from the city centre.  If you work in a CBD location, add up the costs of a weekday commute - it can make a significant dent in your household budget over time.  Having good transport links is essential in any suburb, and public transport can be limited in newer developments.

Look closely too at the available – and planned – amenities in the area.  Quality local schools for instance aren’t just important if you have children, they can also be a factor underpinning long term capital growth.

Consider your financing

There are a variety of lending options available to finance this type of purchase.  We can assist you in understanding these options to enable you to choose the loan that best meets your requirements.  We will also guide you through the process from start to finish and prepare the necessary paperwork for the First Home Owners Grant. 

If you are considering a house and land package, then please call me and I’ll happily discuss your options.

Posted in: Home loans

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