New House & Land in Australia

Are thinking of buying a house and land package? Do you want to choose the house design and features which suit the needs of your family? Are you considering a house and land package which won’t be ready for 6, 12, 18 or 24 months? When buying a house and land package there is a lot you need to understand about this property development type - before you make the decision to buy, let’s find out what it is all about.

What is a house and land package?

Buying a house and land package in Australia is when you decide to buy a freestanding house that is yet to be built. It is different from purchasing an existing property because you make the decision to buy before you have seen the completed house, in fact before the builder has even begun construction. Many developers provide display homes of which you can inspect and choose the layout, fixtures and fittings you prefer for your own home, however you may be making the decision to buy based predominantly on information provided to you by the developer or real estate agent.

The decision to buy your new house and land package could be made from viewing optional floor plans, finishings, images and other details from which you get to design your own home, including the land plots from which you choose the location of your future house.

What are the Benefits of buying a house and land package?

House and land packages are a popular option for Australians entering the property market for the following reasons: Financing for a house and land package usually consists of two steps: buying the land then building the house. The loans can be arranged separately, but are usually bundled together.

Buying the land is a standard real estate transaction with a regular mortgage. The second step requires a construction loan where you 'draw down' an agreed amount to pay for each stage as your home is built. That way, you only pay interest on the money you’re using at each stage.

1. Financing occurs in two steps: When buying a house and land package your financing usually occurs in two steps. Firstly, you buy the land with a standard mortgage. Secondly, the building of the house is financed with a ‘construction loan’ where funds are drawn down at agreed stages of the build. This saves you interest and payments upfront, as you only accrue interest when each stage is reached. 

2. Greater choice: When buying a house and land package you get to choose a property that suits your needs. Developers will often offer a number of standard or customisable home designs, so that you can choose the block of land you want and the features you’d like in your new home. If you work with iBuyNew and get early access to new land releases from developers, then you have a greater choice of land location, views, aspect, floor plans, colour options and much more!

3. Plan your finances: Buying a new house and land package can help you to plan your finances with confidence. Mortgage repayments will be planned around the build and you will be able to budget for each stage. Additionally, a new home will have low maintenance costs and no major repair expenses in the foreseeable future. 

4. Cheaper prices: When a developer releases large house and land estates, they offer lower prices for investors who buy early. Once a developer achieves the presale target and begins construction they often increase prices for those that look to buy on completion of the property estate.

5. Stamp Duty Savings: Many states in Australia offer grants for buying or building a new home, as well as tax or stamp duty concessions. This is particularly relevant for first home owners. It is advisable to speak with an iBuyNew Property Consultant to find out what stamp duty savings or grants you may be eligible for in your state. 


While these are some of the benefits of buying a house and land package there are some risks you need to be mindful of. These can include:

1. Due diligence: The success of your investment is determined by having the due diligence completed by yourself or someone else. At iBuyNew we conduct due diligence on all our house and land package developments to minimise the chance of something going wrong. 

2. No rental return during construction: The mortgage for a house and land package begins when you purchase the land upfront. This means there could be 6 - 24 months before the house is completed in which you are making mortgage payments on the land and the build. Whether you are planning to rent out the property on completion or are building your new home, it is possible that you may end up in a situation where you are paying multiple mortgages before the new property is able to be lived in. 

3. Deposits: When considering buying a house and land package, check first that your deposit will be sitting in a trust account. Look out for the danger signs of a developer asking you to release deposit funds to them, this should be avoided at all costs, and is a sign that you might be about to lose your money. 

4. Not always a fixed price: While one of the benefits of buying a new house and land package is that you get to choose how you want your house to be finished, there are however additional costs which aren’t factored into advertised prices. For example, you need to check that your build includes things like fencing, driveways, and landscaping. Also, costs can blow out due to soil variations, or the slope on your block. Much of this should be covered in due diligence, but it is important to begin thinking of these potential issues upfront. 

5. Quality of property: When we buy a new house and land package based on display homes or images of plots and floor plans, the final product may not meet your expectations. This comes down to knowing who you are buying from and doing your research first. Unfortunately, many times it is simply the fact that you haven’t understood exactly what you are buying… this is where it is critical to ask all questions upfront so you know what to expect when construction begins. 


Where should you buy a house and land package?

When considering the purchase of a house and land package it is important to ask yourself where you should be buying.

Ultimately the longer term capital growth of a block is determined by its location. If the housing development can be easily replicated in a nearby area for the same cost price, then your property capital growth will be limited. However, if there is a unique factor about the plot, for example it may be near a river, the ocean or a major urban centre which is very well established, then the capital growth potential is improved dramatically.

If you plan to rent out your property or live in it yourself, the considerations are still the same. You need to do your research to make sure the area will sufficiently meet the specific needs of your target renter or your own lifestyle. It’s therefore important to check the following:

• Public transport options

• Shops, cafes and restaurants

• Schools and hospitals

• Parks


It is also critical to check with the local council to find out what future plans are for the region. Whether there is a new train station being constructed, or perhaps more shopping facilities and activity zones, and especially if there are additional development plans for high density housing or land releases in the area.

While it is easy to think that buying a well marketed house and land package is a standard real estate transaction, unfortunately it’s not. It is important to really understand the process and to employ the services of a solicitor or conveyancer that will be able to check through and give you advice on your house and land package contract. Speak with experts who understand the process and can give you solid advice for the future growth of your real estate investment.

If you have decided that buying a house and land package in Australia is what you want to do, get in touch with the Property Consultants at iBuyNew on 1300 123 463 and we can help you with the next steps to take. Our team are experts in house and land packages and can give you the right advice to find the best opportunity to buy your next investment or new home.

Do you have a preferred city in which you want to buy your house and land package? You can find out more information about opportunities in Australia’s major cities by visiting the following page:

House and Land Packages Sydney
House and Land Packages Melbourne
House and Land Packages Brisbane