How do house and land packages work?

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How do house and land packages work?

A house and land package could be the ticket to your dream home – but there are a few key things to know about them.

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House and land packages combine a block of land with a new-build home in one deal, making it easier to plan and budget for your property purchase.
They offer convenience and cost certainty, with fixed-price contracts and streamlined processes that help you move into a brand-new home sooner.

If your dream is to buy a brand new home that you can design and build from scratch, you might find yourself looking at house and land packages. But how exactly do they work?

These days, most new homes are built by property developers who acquire land when it's released by the government. The developers lay down infrastructure (roads, utilities, water and sewage), and then either:

build homes and sell them as a complete house and land deal, or
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.

One potential benefit of buying your new home this way is that you can tailor the property to suit your needs.

Another benefit is that environmentally friendly materials and features can often be part of the package, as sustainability has become a key benchmark in the construction industry.

How do you find a house and land package?

House and land packages are often tailored to appeal to a specific group of buyers. You might find the one you want in a golfing estate, retirement village or even an eco-village. Then there are the new subdivisions, with opportunities for investors or first home buyers.

Unless you’re already aware of a new estate being built in your ideal neighbourhood, you can find them advertised on major multi-listing websites or by going directly to the developers themselves.

If possible, check out other estates that the developer has been involved in, walk around the streets and talk with homeowners to get a feel for the reliability and quality of the development you’re interested in.

Unlock our low variable rate with the Digi Home Loan

            
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_{*Digi Home Loan (Owner Occupied Principal and Interest) for new borrowings with Loan to Value ratio of up to 60%, when compared to CommBank’s other advertised loan rates. Min. new borrowings of $100,000. Comparison rate warning.}

How does financing a house and land package work?

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.

Other considerations

Ask the developer what is included in the build, as there could be other things you need to budget for. Some builders include for example fencing, driveways, landscaping, garaging, carpets and clotheslines in the listed price, while others do not.

It's a good idea to budget conservatively. If there are shortfalls in the valuation of the property, you may need additional funds to cover the cost of the construction or land purchase. You may be better off leaving a bit of a buffer in your budget to cover any unexpected costs.

Lenders might also require that you pay the initial invoices and only start releasing funds from the construction loan when there's evidence that you’ve used all your deposit. This is to ensure there are sufficient funds to complete the build.

Are there any grants for new house and land packages?

Many states offer grants for buying or building a new home, as well as tax or stamp duty concessions, particularly for first home owners. See your state government’s website for details before finalising your budget.

Once you've decided where and how your dream home will be built, keep a close eye on it throughout construction. That way you'll know about changes as they occur and be prepared for the next steps.

Thinking of buying a house and land package? Speak to one of our Home Lending Specialists today

Book appointment

More in home buying

Using equity to buy property

Redraw vs offset explained

Understanding valuations

How much can you borrow?

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.

* This offer is valid from 6 May 2025. To secure the offer you will need to engage the services of a Home-in partner law firm via the Home-in app on or after this date. If you engaged the services of a Home-in partner law firm via the Home-in app before this date, you are not eligible for this offer. This offer cannot be combined with other Home-in offers.

This offer is only available to CommBank customers who meet the following criteria:

(a) have an eligible CommBank transaction account: Smart Access, Complete Access, Everyday Offset, Pensioner Security (excluding Pensioner Security Passbook accounts) or Private Bank Account; and

(b) fund an eligible residential property purchase with a CommBank home loan; and

(c) settle this property purchase using the in-app legal services provided through Home-in.

This offer only applies to buy-side conveyancing services for residential property purchases in Australia. Home-in does not offer conveyancing services for the purchase of off-the-plan, rural/agricultural, retail or commercial properties, or properties with a purchase price in excess of $5,000,000. Additional fees apply to conveyancing services in respect of complex titles (such as old system, leasehold and company titles), which are excluded from this offer.

This offer is only available through CommBank’s proprietary channels, it is not available to customers that originate through Bankwest, Unloan or a broker channel.

If you settle on a property without meeting the eligibility criteria, this offer will not apply and you will be required to pay the standard list price for your conveyancing services. If you do not ultimately settle on a property purchase with Home-in within 6 months of your first contract review, any disbursements, contract review fees and ancillary service fees incurred will become payable to Home-in at the standard list price.

The $699 (including GST) offer includes the following conveyancing services: one standard contract review, reasonable negotiation with the vendor’s solicitor, preparation of documents and figures required for settlement and electronic or paper settlement for your property.

Disbursements are additional and charged at cost. For some property purchases, you may require or request additional services for which we charge a professional fee, such as expedited settlement or usage of a trust account.

Find out more about Home-in's pricing by visiting home-in.com.au/pricing. Home-in reserves the right to terminate the offer and change the pricing at any time.

Home-in is a brand of CBA New Digital Businesses Pty Ltd ABN 38 633 072 830 trading as Home-in Digital. CBA New Digital Businesses Pty Ltd is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. CBA New Digital Businesses Pty Ltd is not an Authorised Deposit-taking Institution for the purposes of the Banking Act 1959 (Cth) and its obligations do not represent deposits or other liabilities of Commonwealth Bank of Australia.