House & Land Packages: Pros and Cons for Buyers
Christian Stevens, Mortgage Broker
Published December 7, 2025, 3:50 P.M
Discover whether a house and land package is right for you. Learn the pros, cons, finance steps, risks, grants, and build considerations. Flint helps buyers structure finance, compare packages, and navigate land + construction loans with confidence.
🔑 Key Facts
- A house and land package bundles a block of land with a newly built home, often in a new estate — a popular option for buyers seeking modern homes and predictable costs.
- Favoured by first home buyers, upgraders and property investors due to lower entry costs, strong depreciation benefits and newer estate amenities.
- Key advantages include stamp duty savings, government incentives and customisable build options.
- Challenges include construction delays, potential cost variations, valuation issues and estate-specific restrictions.
- Flint helps buyers assess package value, navigate construction finance, and manage contract conditions for a smoother buying journey.
What Is a House & Land Package?
A house and land package is an agreement where you:
- Buy the land from a developer
- Build the home through a partnered builder
Although marketed as a single product, it typically involves two contracts — one for the land and one for the construction. Most buyers use a construction loan, which releases funds in progressive stages as the build advances.
This structure offers flexibility, but also requires careful finance planning — an area where Flint’s mortgage brokers support buyers step-by-step.
Why Choose a House & Land Package?
Benefits Include:
- Lower upfront costs — stamp duty usually applies to land only, reducing buyer expenses
- Eligibility for first home buyer grants, rebates and incentives
- Fixed-price contracts (in many estates) for clearer budgeting
- Modern, energy-efficient design and new-build warranties
- Growth potential in emerging or master-planned communities
What to Watch Out For
Common Risks:
- Delays in land registration or the building phase
- Higher overall costs due to upgrades or rising construction prices
- Location risks — some estates may be remote, oversupplied or slow to grow
- Estate design rules limiting façade choices, fencing, landscaping, etc.
Valuation gaps, where final build costs exceed lender valuation
Finance Considerations
- Construction loans release funds progressively: slab → frame → lock-up → fix → completion
- You pay interest only on funds drawn, helping manage cash flow
- Two contracts (land + build) mean separate lender assessments
- Pre-approval is essential before signing contracts to avoid funding issues
Who Are House & Land Packages Best For?
- First home buyers seeking affordability, grants and modern design
- Young families or upsizers focused on space, layout customization and new communities
- Property investors aiming for rental appeal, depreciation, and lower maintenance costs
Tips for Buyers
- Review and compare builder inclusions (base price vs turnkey features)
- Confirm land registration timelines and expected build duration
- Check what’s included vs optional (e.g., driveway, fencing, landscaping)
- Work with a mortgage broker to structure land + construction loans effectively
📞 Looking at a House & Land Package?
At Flint, we help you:
- Review developer contracts, inclusions and finance structure
- Set up the correct loan strategy for staged construction payments
- Navigate extras, upgrades, and first home buyer grant eligibility
Talk to Flint today and build your future with clarity — from deposit to driveway.
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