How do house and land packages work?

If you have started looking for your first home, you have probably come across house and land packages. They can make finding a new home simpler because the two biggest pieces of the puzzle, the block and the home design, have already been matched together.

The part that can be confusing is the word package. You are not usually buying one finished property under one contract. In most cases, you buy the land from the landowner or developer and sign a separate contract with the builder to construct your home.

So while the house and land are presented together, there are still a few separate steps behind the scenes. Here is how it all works.

What is a house and land package?

A house and land package pairs a particular block of land with a home design that has been selected to suit it.

Instead of finding land first and then working out what you can build on it, you can start with an option where much of that matching has already been done.

A package will usually show you things like:

The home usually has not been built yet. You are securing the land and arranging for the builder to construct the home on it.

For a first home buyer, this can make it much easier to compare the home, location and overall price together rather than trying to piece everything together separately.

Is a house and land package one contract or two?

Usually, two.

This is probably the most important thing to understand about house and land packages.

The land contract

You purchase the block from the landowner or developer. This contract covers the land price, deposit, settlement and any conditions attached to the land.

The building contract

You separately enter into a contract with the builder to construct the home. This covers the home design, building price, plans, specifications, inclusions and the terms of the build.

So even though you may see one combined house and land price advertised, the land and home are generally two separate legal transactions.

It sounds slightly less “packaged” when you put it like that, but the benefit is that the home and block have already been matched for you.

How does buying a house and land package work?

The exact process can vary depending on the land, builder and your finance, but there is a fairly straightforward journey from finding a package to getting the keys.

1. Work out your budget

Before choosing a package, get an idea of what you can comfortably afford and speak with your lender or mortgage broker about your borrowing position.

Think beyond the maximum amount you may be able to borrow. Your budget also needs to account for the other costs involved in buying, building and eventually living in the home.

2. Choose where you want to live

House and land packages are commonly available in new estates and growing communities.

Think about the area as well as the home. Consider your commute, public transport, shops, parks, schools or childcare if relevant, and the things you want nearby day to day.

Once you have a few locations in mind, you can start comparing the packages available within them.

3. Find the right home and block combination

This is where the package part becomes useful.

Rather than choosing a home and hoping it fits the land, the design has already been matched with a suitable block.

Look at the floorplan, block size, orientation, bedrooms, car spaces and outdoor space, then think about whether the combination works for how you want to live.

If you like the location but not the home, or the home but not the location, ask what other combinations may be available.

4. Secure the land and your home

Once you are happy with the package, you can move through the requirements for securing the land and build.

Because there are usually separate contracts, there may also be separate deposits and conditions for each.

Before signing, make sure you understand what you are paying, what is subject to finance and what happens if something changes. Your solicitor or conveyancer can review the relevant contracts, while your broker or lender can help with the finance side.

5. The land settles

Before construction can begin, the land needs to settle and become yours.

If the block is already titled or registered, settlement can take place once the contract and finance requirements have been met.

If the land is not titled or registered yet, you will need to wait for that process to be completed first. This is common in new estates, particularly when you are buying in a future stage of a development.

6. Pre-construction gets underway

Once the land and build are progressing, there are usually a few things to finalise before construction can begin.

Depending on the builder and home, this can include plans, engineering, developer approval, permits and your colour or finish selections.

Your builder should explain what happens at each stage and anything they need from you along the way.

7. Your home is built

Once the required pre-construction work is complete, construction can start.

Your home will then move through the different building stages, with progress payments generally made as those stages are completed.

Eventually you reach practical completion, final inspections and handover.

Then the floorplan you have been staring at for months finally becomes somewhere you can put a couch.

How does the house and land package price work?

The advertised package price generally brings together two amounts:

Land price + building price = house and land package price

Where you need to pay a little more attention is what has been included in the building price.

Depending on the package, this could include things such as:

Not every builder includes the same things, so two packages with the same advertised price may give you very different finished homes.

Before choosing a package, make sure you understand what is included and what you may still need to pay for or organise separately.

Is a house and land package fixed price?

Not automatically.

Some house and land packages are advertised as fixed price, while others may include estimates or allowances that can change as more details are confirmed.

When comparing packages, check:

At Mayde, our house and land packages are usually fixed price, so you can see the combined cost of the land and specified home upfront. That price is based on the home, block and inclusions shown in the package.

You can still personalise your home through the Elle Design Studio, where you can choose from available colours, finishes and upgrade options. If you decide to add upgrades outside the standard package inclusions, those additions will affect the final build cost.

A fixed price should give you more certainty about your budget, but it is still worth understanding exactly what sits inside that number.

How does finance work with a house and land package?

Because the land and home are generally purchased separately, finance can work differently from buying an established home.

The land usually settles first. Once that happens, you own the block and your land loan repayments generally begin.

The construction portion of your finance is then drawn progressively as the home is built.

These are called progress payments.

Rather than paying the entire building price at the beginning, your lender releases payments as construction reaches the stages outlined in your building contract.

Your broker or lender can explain how your loan will be structured, when repayments begin and what your costs may look like while construction is underway.

This is particularly important if you will also be paying rent during the build.

What if the land is untitled or unregistered?

This is common in new estates and does not necessarily mean there is a problem with the block.

It simply means the individual lot has not completed the registration process yet.

You may be able to secure the land before this happens, but settlement cannot take place until the land has been registered. Construction also cannot begin until the land has settled and the other pre-construction requirements are complete.

Before committing, ask about:

An expected title date is exactly that: expected. It is worth leaving some flexibility in your plans.

Can you change the home in a house and land package?

Sometimes.

The advertised home has usually been selected because it works with that particular block. Changing the design means checking that the new home still works with the block size, setbacks, easements, developer guidelines and any other requirements.

There may also be options to personalise the home without changing the overall design, such as your:

What you can change will depend on the builder and package.

If there is something you would do differently, ask before assuming it can or cannot be changed. Just remember that changes may also affect the price.

What should you check before choosing a house and land package?

You do not need to know everything about building before you start looking, but you should understand the important parts before you commit.

Make sure you are comfortable with:

You should also understand both contracts and have your finance ready for the land and construction parts of the purchase.

If something is unclear, ask. You are not supposed to already know how all of this works.

What first home buyer help could apply?

If you are buying or building a new home, you may be eligible for government assistance depending on your state, property value and personal circumstances.

This could include:

It is worth checking this early rather than waiting until you have already chosen a package. The assistance available to you could affect your deposit, upfront costs and the price range you are comfortable considering.

Government schemes and eligibility requirements can change, so always check the current rules for the state you are buying in.

Why do first home buyers choose house and land packages?

One of the main benefits is that some of the matching has already been done for you.

Instead of separately finding a block, choosing a home and then discovering whether the two actually work together, you have a home and land combination to start with.

A house and land package can also make it easier to:

There are still decisions to make, but you are not starting with a blank block of land and a catalogue full of floorplans.

Is a house and land package right for you?

A house and land package can suit you if you want a brand-new home but would prefer to start with a home and block that have already been matched.

You can still choose the location, find a floorplan that suits you and personalise parts of the home, but some of the work involved in finding the right land and design combination has already been done.

If you would rather secure your own block first and then explore a wider range of home designs, buying land separately may suit you better.

Neither option is automatically better. It comes down to your budget, location, how much choice you want and where you are starting from.

House and land packages, Mayde simple

The name makes it sound like the house and land arrive neatly tied together with a bow. The reality involves two contracts, finance, land settlement and a few more steps in between.

But the basic idea is simple: find the location you want, pair it with a home that works on the block and understand the combined cost before you start building.

At Mayde, we match our home designs with land in communities where first home buyers want to live, so you have a clearer place to start. We can help you understand the package, what is included and what happens next without expecting you to already know how any of this works.