What is a House and Land Package?


What is a House and Land Package?

In essence there really is no such thing as a House and Land Package, it is simply a term used in the building industry. When you look to build a house, there are two separate transactions, a land contract with the land developer and a build contract with the builder. The House and Land Package term comes from the builders advertising a house on the developer’s land, so it is more appealing to the buyers. You can either select a block of land from the developer and then select a house to fit, or find a house you love and then search out a block of land to suit. We can assist you with the search for land as we have the developers land lists on file which is updated weekly.

A house and land package is when the purchase of a block of land and a house is bundled into one process, but with two contracts. This can streamline the process of building a new home and take away the stress of finding the perfect location for your dream home.


What are the benefits of a house and land package?

1. Save on Stamp Duty

Stamp Duty is a tax charged by the Queensland Government whenever a property is sold or transferred to a new owner. The cost of stamp duty depends on the value of the property at the time of purchase. The value of the property is calculated at the time of signing the contract and based on two contracts – one for land and one for construction, you will only pay Stamp Duty on the value of the land, which can save you $1,000’s.


2. The Choice is Yours

Building a new home means you have the freedom to select the block of land you like the most. There are some factors to consider when choosing your block, so make sure you think about the location, size, aspect and slope, and if they satisfy your needs.


3. Secure today’s prices for a future settlement date

Often a block of land is sold in advance of the date it is available to commence building a new home. This means you can lock in today’s value of the land and reap the benefits if the land value increases before you start building. A house and land package generally provides better value than an existing house in the same area. On average it costs about 14% less than an exsiting property (source).


4. Eligible for Government Grants

You have the potential to save up to $15,000 with the Queensland Government First Home Buyer Grant when you build a new house valued at less than $750,000. You can find out more about the First Home Buyers Grant here.


5. QLD’s First Home Vacant Land Concession

A house and land package can offer savings on stamp duty for First Home Buyers. If you are a First Home Buyer purchasing vacant land to build your home on, you might be eligible for the first home vacant land concession which could save you up to $7,175. It applies to land valued at less than $400,000. No duty is payable on land valued at less than $250,000. You can find out more here.


6. More Time To Finalise Design Details

If you have purchase unregistered land, you can take advantage of the time between putting your deposit down and land settlement. You can use this time to work with the builder to finalise the design and finishes within your new home plans.


7. New Build Warranty

Since a house and land package is new, you’ll be covered under Queensland’s Builders Warranty if there are any problems. All our builds come with a 25-year warranty for materials, labor, and mechanical systems such as electrical works. In addition, Arista Homes provides a 6-year warranty on structural defects.


8. Investment Benefits

New homes have the advantage of being incredibly attractive to tenants with modern conveniences and offer a place that tenants will love and want to stay in for many years. A bonus for investors is that it will be easier to lease and likely to have few or no maintenance outlays. New homes also have the benefit of being able to charge premium rent so you will gain higher returns for your investment.


9. Customise your dream home

Arista Homes offers an extensive range of beautiful home designs to suit your lifestyle and budget. As the home has not yet been built, we can work with you to customise one of our designs, or even create an individual, one-off design, especially for you. Call the team on 07 5547 9000 to discuss your individual requirements and from there we will be able to supply you with an itemised quote.


How does financing a house and land package work?

A buyer will have two contracts because they are purchasing from two separate entities, the land developer and the home builder. This means you will require two loans:

1. A mortgage loan on your land
2. A construction loan for building your house


Repayments on your mortgage land loan will need to start being paid as soon as the ownership of the land is transferred after settlement. These repayments will be only for the land itself. For the home, only stamp duty on the land component of the fixed price needs to be paid.

Your construction loan is paid in increments at the end of each stage of construction and consists of interest on the amount of money you have paid thus far.

Queensland’s First Homeowners’ Grants can still contribute towards purchasing a house and land package and is a popular option for many first home buyers.


Start your new building journey today.