What Is a House and Land Package? A First Home Buyer’s Guide

First home buyers often explore different pathways to homeownership, and a house and land package is one of the most popular choices. Offering a streamlined approach, these packages allow buyers to secure both a block of land and a newly built home in a single process. But how do they work, and are they the right option for you? This guide breaks down everything you need to know, from the step-by-step process to financial considerations and key factors to watch out for.

What is a house and land package?

It’s a property purchase option where buyers secure both the land and a newly built home in a single deal. Instead of buying an existing property, this approach allows first home buyers to build from the ground up, often with the ability to customize layouts, finishes, and features.

A land and house package is typically offered in new housing estates, where developers provide plots of land alongside builder-designed home plans. Buyers can either choose a turnkey package, where the home is move-in ready upon completion, or an off-the-plan package, which involves a longer construction process.

How Does a House and Land Package Work?

1. Selecting the Land – Buyers choose a plot in a designated development area. Factors like location, lot size, and orientation affect the final build.
2. Choosing a Home Design – Builders offer a range of floor plans and customization options, allowing flexibility in size, layout, and features.
3. Signing Contracts – Buyers sign separate contracts: one for the land purchase and another for the construction of the home.
4. Securing Financing – Loans for a first home buyers house and land package differ from standard home loans, often involving a combination of a land loan and a construction loan.
5. Construction Phase – The builder follows a staged construction process, with payments made at various milestones (e.g., slab, framing, lock-up, and completion).
6. Final Handover – Once the build is complete and all inspections are cleared, the home is ready for move-in.

Understanding how  a house and land package works is essential for first home buyers looking for an affordable entry into the property market. With structured payments and government grants available, this option provides financial flexibility while ensuring a brand-new home built to modern standards.

How First Home Buyers Can Get a Land and House Package

For first home buyers, securing a house and land package requires careful planning, financial preparation, and understanding the steps involved. Since these packages offer an affordable pathway to homeownership, many government incentives and financing options exist to support first-time buyers. Below is a detailed guide on eligibility requirements and the step-by-step process to secure a land and house package.

Eligibility Criteria for First Home Buyers

Before purchasing a house and land package, first home buyers must meet specific eligibility requirements, including financial and government criteria.Each state has different eligibility criteria, so buyers should check state government websites for specific programs available in their area.

Income and Financial Requirements

While there is no fixed income threshold to purchase a house and land package, buyers must demonstrate stable income to qualify for a home loan. Lenders assess:

• Employment history – Stable full-time, part-time, or self-employed income over a specific period.
• Debt-to-income ratio – Ensures your existing financial obligations (loans, credit cards) don’t exceed your repayment ability.
• Savings history – Some lenders require a genuine savings history to prove financial discipline.

Credit Score and Deposit Considerations

A good credit score improves the chances of securing a loan with lower interest rates. Key credit factors include:

• Credit Score – A score of 650+ is typically preferred by lenders.
• Deposit Requirements – Most lenders require a 5% to 20% deposit of the property price, depending on loan approval.
• Lenders Mortgage Insurance (LMI) – If the deposit is less than 20%, buyers may need LMI, which adds extra costs.

State-Specific First Home Buyer Programs

Many states in Australia offer grants, exemptions, and schemes to assist first home buyers. Key programs include:

• First Home Owner Grant (FHOG) – Provides a one-time cash grant for new home construction.
• Stamp Duty Concessions – Some states offer exemptions or discounts on stamp duty for first home buyers.
• First Home Guarantee (FHG) – Allows eligible buyers to purchase with only a 5% deposit, avoiding LMI.

Steps to Securing a House and Land Package

Purchasing a house and land package follows a structured process, ensuring buyers choose the right property while managing costs effectively.

1. Researching Available House and Land Packages in New Developments

Start by exploring new housing estates or master-planned communities offering land and house package deals. Consider:

• Proximity to schools, transport, and shopping centers
• Infrastructure growth potential – Areas with upcoming developments often increase in value.
• Land size and zoning restrictions – Ensure the lot size meets your needs and council regulations.

Developers often provide package deals with pre-designed homes, allowing buyers to choose based on budget and lifestyle needs.

2. Finding a First Home Buyer-Friendly Lender

Not all lenders offer favorable terms for first home buyers, so it’s crucial to find a lender specializing in house and land packages. Look for:

• Competitive interest rates for construction loans.
• Low deposit home loans that cater to first home buyers.
• Government-backed loan schemes to reduce upfront costs.

3. Understanding Pre-Approval and Budgeting Requirements

Before selecting a house and land package, securing loan pre-approval is essential. This involves:

• Submitting financial details to a lender.
• Receiving an estimate of the maximum borrowing amount.
• Ensuring financial readiness before committing to a contract.

Budgeting should also consider hidden costs, including:

• Site preparation (soil testing, leveling)
• Landscaping and fencing
• Council fees and utilities setup

4. Selecting the Right Land Lot and Home Design

Once financing is in order, the next step is choosing the right plot of land and home design. Factors to consider include:

• Orientation and lot positioning – Affects natural light and energy efficiency.
• Customization options – Some builders allow design modifications, while others offer fixed layouts.
• Inclusions vs. upgrades – Standard packages may not include high-end features like stone benchtops or premium flooring.

5. Signing Contracts for Land and Construction

Since a house and land package involves two separate contracts, buyers must understand the legal aspects:

• Land Purchase Contract – Covers the purchase of the land from the developer.
• Construction Contract – Signed with the builder, outlining home specifications, costs, and timelines.

6. Applying for Government Grants and Assistance

To reduce costs, first home buyers should apply for available grants and incentives before settlement. Submitting applications early ensures financial benefits are factored into loan calculations.

This includes:

• First Home Owner Grant (FHOG) applications through state revenue offices.
• Stamp duty concessions (if applicable) submitted during the purchase process.
• First Home Guarantee for low-deposit home loans.

7. Beginning the Construction Process

Once all approvals and contracts are in place, construction begins. Regular site inspections and communication with the builder help track progress and address issues early.

The builder follows a staged process:

• Slab stage – Foundation laid.
• Frame stage – House structure completed.
• Lock-up stage – Roof, windows, and doors installed.
• Fit-out stage – Interior fixtures, flooring, and painting.
• Final inspection and handover – Ensures home meets contract specifications.

Financial Considerations

For first home buyers house and land package deals offer a cost-effective way to enter the property market. However, understanding the financial side is crucial to avoid unexpected expenses.

Pricing Structure and Payment Stages

Unlike buying an established home, a land and house package involves separate costs for the land purchase and home construction. This means buyers need to secure financing in two stages:

• Land Purchase – Paid upfront or financed through a standard home loan.
• Construction Costs – Usually covered by a construction loan, where funds are released in stages as building progresses.

Each stage of construction requires a payment before moving to the next phase, helping buyers manage costs gradually instead of paying a lump sum.

Stamp Duty and Government Grants

One of the biggest advantages of a house and land package is the potential for first home buyers to save on stamp duty. Since stamp duty is only applied to the land component (not the yet-to-be-built home), this can result in significant savings.

Additionally, eligible buyers may benefit from government incentives such as:

• First Home Owner Grant (FHOG) – A one-time financial boost for new home construction.
• Stamp Duty Exemptions or Concessions – Varies by state but helps lower upfront costs.
• First Home Guarantee (FHG) – Allows eligible buyers to purchase with a smaller deposit.

These financial incentives make house and land packages an attractive option for those entering the property market for the first time.

Loan Options for a House and Land Package

Financing a house and land package typically involves two types of loans:

1. Land Loan – Covers the purchase of the land and is structured like a regular mortgage.
2. Construction Loan – Funds the build in stages, with repayments based only on the amount drawn down at each stage.

Working with a lender experienced in house and land package financing can help buyers navigate their options and secure the best deal.

Choosing the Right House & Land Package

Selecting the right land and house package requires careful consideration to ensure it meets both lifestyle and financial needs.

Key Factors to Consider

• Location – Proximity to schools, transport, shopping centers, and future development plans.
• Land Size and Orientation – Impacts home design, sunlight exposure, and resale value.
• Builder Reputation – Researching builder reviews, past projects, and warranty policies is essential.
• Standard Inclusions vs. Upgrades – Understanding what’s included in the base package versus additional costs for features like premium flooring, landscaping, and kitchen upgrades.

Common Mistakes First Home Buyers Should Avoid

1. Not Reading the Fine Print – Contracts can have unexpected clauses, so legal review is crucial.
2. Underestimating Additional Costs – Fencing, landscaping, and site preparation can add up.
3. Choosing the Wrong Loan Type – Ensuring the loan suits the staged payment structure of a house and land package is key.
4. Ignoring Future Growth Potential – Picking an area with strong infrastructure and demand ensures long-term value.

By carefully assessing these factors, first home buyers house and land package purchases can be a smart and financially sound investment.