Benefits of buying a house and land package

When you purchase a new home, you can buy your land and the house to be built on it separately, or together. This is ultimately a personal choice, but there are some distinct advantages to buying house and land together in one hit.

Let's break them down.


Bundling house and land together usually means that developers are in a position to offer great deals to buyers. Builders select the best blocks in the estates that they know will translate to more affordable house and land packages;  they can best match the right house to the chosen lot of land.

When you buy as a package, builders also usually bundle inclusions that deliver you greater discounts, thanks to economies of scale by negotiating bulk deals with suppliers, together with spreading costs across building a group of these houses within a section of a land estate. 

Builders will reduce their margin on the sale price of a house and land package in order to create greater value to their customers. By simplifying the selling process they save money, which can be passed on to the buyer.

Peace of mind

When you purchase a house and land package, you know your costs upfront and the builder has included everything you need to get started on site. You’ll have relatively fixed costs and can budget accordingly.

If you take on a DIY build (especially as a first timer) you’ll be facing an uphill and often stressful battle, full of unexpected surprises, including selections and items not included in the base price of the house. A house and land duo gives you certainty, convenience and peace of mind both before and during construction.

Don't forget these questions to ask your builder.

Less complexity

If you are working with the same team to acquire your land and build your home, you'll be presented with a solution where the right lot is selected for your lifestyle, grouped with a house that is designed to work best for the chosen lot of land. Working with an expert on a holistic solution will reduce stress levels and give you much deserved support.

Securing finance for a house and land package will be easier and less complex as you will apply for a single loan versus two (a loan on the land and a loan on the house). Having a combined loan will help you get the best rates, and select a bank that understands progress payments.

Banks can factor in the first home owners grant in to your loan calculations, which makes it easier than chasing up the grant at later stages.

Newbridge Aerial

Extra savings

When you buy new homes versus established you’re usually eligible for the First Home Owner Grant ($10,000 on new homes built in Victoria and $20,000 in regional areas as of 2019). If construction hasn’t yet commenced on your new home, you should only pay stamp duty on the land part of your purchase, generating more savings up front.

First home buyers are exempt from stamp duty (up to $600,000). These amounts can help you pay down the mortgage or be applied toward life’s other necessities.

If you’re an investor there may be additional financial advantages, as newly built properties depreciate at a faster rate than established dwellings. There are depreciation advantages for buying new as well as less maintenance costs as everything is new.

New homes are built to comply with top energy ratings. This means that the house will be more efficient to heat and cool, and in turn saves a considerable amount of money in utility costs (which may otherwise be a nasty surprise).

Read more: How to choose the right suburb to buy in

Future growth

House and land packages have been pre-vetted by the developers bringing them to life. A development is often already be underway when you buy, and those same economies of scale means that entire suburbs are often pre-sold. 

This translates into guaranteed activity and growth. Plus, communities in developing locations promise strong growth over the long term, as new neighbours move in and supporting infrastructure is rolled out.

This growth helps energise a suburb as a community and offers financial benefits as you build equity in your house and land package over time.

If you want to explore house and land packages that suit your property dreams, reach out for a chat.

About the author

Darren Mehl is Chief Operating Officer for Resimax Group and its house of brands. An industry stalwart, he has held senior roles at Metricon and Carlisle Homes. Darren has worked closely in the first home buyer market, delivering initiatives that assist this complex and competitive demographic. A passionate advocate for customer-centric business, Darren is experienced in all facets of property.

Darren Mehl

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