What is a House and Land Package?

In short, a house and land package combines the processes of buying land and building a house into one package, with two contracts, thereby eliminating the need for separate purchases. For many, it offers flexibility and inclusions that are not available in alternative property purchases. 

Understanding what these packages include and exclude can be confusing, especially when faced with a myriad of housing options. House and land packages are not universally perfect for everyone. Determining whether it is right for you depends on various factors, making it a suitable choice for some people and unnecessary for others. 

This article breaks down the benefits and costs while helping you select the right home builder and location.

Understanding How It Works

Buying a house and land package works in two steps.

1. Buying the land

2. Building the house

Financing for this process is undertaken to reduce costs by bundling multiple loans together. Some home builders, like Everyday Homes, consider all possible requirements to avoid additional costs later.

Throughout the construction process, it typically takes 12 weeks to draw the plans, transfer the land into the customer’s name, and obtain building approval, which the home builder approves to reduce the customer's obligations. Following that, it takes about 36 weeks for a single-storey build and 42 weeks for a double-storey build.

What Are The Benefits Of A House And Land Package?

Benefits

One of the most significant benefits of a house and land package is that it combines the estimated total costs of the home and land contracts into one lump sum. It’s an affordable way to purchase and build a custom property without incurring excessive separate expenses.

Other benefits include:

• Saving thousands of dollars on stamp duty, where you are only required to pay stamp duty tax for the land contract.

• Having flexibility for customisation, where homes are available with preset design packages, allowing you to choose your new home and tailor it to the land.

• Government incentives still apply, including the First Home Owner Grant.

• Complete packages that include the majority of the work done for you by the home builder, allowing you to enjoy the building process.

• Most home builders in NSW, like Everyday Homes, build to meet the minimum energy efficiency requirements set by BASIX, ensuring compliance with the necessary standards for construction. All our fixed-price home and land packages include, at no extra cost, the compliance requirements required to reduce household energy and water use, which in turn will enhance the well-being of the home occupants.

Disadvantages

For some people, a house and land package may not be the best option. It depends on a person’s lifestyle and needs, leading to varying experiences for everyone. Some disadvantages of house and land packages include:

• Limited location choices because a home builder will have set locations available for building. Sometimes, locations may not be close enough to infrastructure or are located away from established neighbourhoods.

• Newer suburbs may have ongoing construction, which can be disruptive to new property owners due to constant nearby activity.

• Some home builders limit the capacity for complete customisation, offering limited floorplan options or design choices, which can result in homes in one suburb looking similar in style.

If you’re considering buying a new property, making the decision about whether a house and land package is right for you can be tricky. Our experienced home-building team at Everyday Homes is here to answer your questions and provide you with trusted guidance. Build your dream home with confidence today.