What is a house and land package in Australia?

Owning your home is a dream shared by many Australians. Currently, around 66% of the population has achieved home ownership. Every year, thousands more Aussies join them on the property ladder, and many do so by purchasing house and land packages. 

If you’re a first-time buyer or new to the concept, we’ve put together this expert guide to explain what a house and land package is, how it works, and what to expect during the build. 

For more than 30 years, Provincial Homes has walked families through the process of securing a house and land package in Australia. We treat every home as if it were our own, and we want to share the benefit of our knowledge and experience with you. 

What you’ll learn

In this guide, we’ll cover:

• What is a house and land package in Australia?
• How do house and land packages work?
• What is included in a house and land package?
• Types of house and land packages available in Australia
• What are the alternatives to house and land packages?
• How to decide if buying a house and land package is right for you
• Summing up
• FAQs

Key takeaways

• A house and land package bundles your land purchase and home build into one streamlined process.
• Buyers sign two contracts: one for the land and one for the build.
• Fixed price and turnkey packages offer different levels of price certainty, convenience and customisation.
• Construction loans, grants, and stamp duty concessions can help eligible buyers fund their new home.
• House and land packages suit first-home buyers, growing families and investors who want a modern, low-maintenance property.

The benefits of a house and land package in Australia

A house and land package is a combined deal that many building companies (like Provincial Homes) offer in Australia. It involves securing a block of land and choosing a new home design to build on it, using the same provider. 

Instead of searching for land separately and managing multiple contractors, the land and building components are bundled together. Generally, you’ll sign a land contract for the lot and a building contract for the property. This makes the entire process easier, from the purchase of your land to the completion of your home.

This approach differs from buying an established home because the property is brand new. House and land packages are popular with:

• First-home buyers who want an easier entry into the market
• Growing families that need more space and modern features
• Investors who value low-maintenance properties with strong tenant appeal

How do house and land packages work?

House and land packages are designed to make building a new home easier. 

Typically, it follows a path like this:

• Step 1: Secure a package
• Step 2: Sign contracts
• Step 3: Secure financing
• Step 4: Purchase land
• Step 5: Begin construction
• Step 6: Builder hands over keys

Let’s go into each of these steps in more detail.

Step 1: Secure a package

Your journey begins by choosing a house and land package in your preferred location. The first step is to select a block of land from your developers. Once you’ve done this, you’ll then need to pick a home design that suits your lifestyle.

You’ll be offered different choices of home designs and styles. They might include single-storey or double-storey options. You may also be able to visit a display home, which can give you a better visual appreciation of what the property will be like.

Step 2: Sign contracts

A house and land package usually comprises two contracts. One is the land contract for the block itself. The other is the contract for building the home.

The latter confirms the following:

• Your chosen home design
• Any standard inclusions
• Desired upgrades
• Additional costs incurred
• Construction timeline

Both are legally binding agreements. This means you’re protected by certain laws and rights. (It’s worth contacting a specialist conveyancing lawyer to make sure you fully understand the contracts).

Step 3: Secure financing

Most buyers require financing to pay for their house and land packages. There are several types of home loan options available. However, many buyers choose construction loans.

These types of loans release funds in stages rather than the entire amount up front. The stages usually represent different milestones – for example, purchasing the land, breaking ground, and building the home.

It’s worth shopping around to find the best deals. A mortgage broker can help you do that. Additionally, you may be eligible to receive the First Home Owner Grant. You can find out more details about that here.

Step 4: Purchase land

Once your financing is in place, the settlement for the land purchase will proceed.

You may need to get council approvals before construction can start. However, the site will be prepared when those have been secured. This will ensure everything is ready for the construction phase.

Step 5: Begin construction

Your builder starts work on your brand-new home. They’ll follow the agreed design and timeline.

During construction, you’ll receive regular updates from the site manager.

Step 6: The builder hands over the keys

When the home is complete, your builder will run final checks to ensure it complies with state regulations.

Only when they’re satisfied that it does will they hand over the keys to your completed home.

What is included in a house and land package?

A house and land package brings together the key elements needed to build a new home. Specific aspects will vary between builders. However, most packages follow a similar structure.

What’s typically included

• Land: This is the block of land you choose from the land developers.
• Home construction: You get a new home built according to your selected design.
• Standard inclusions: These are the items included in the base package. They usually include flooring, kitchen fixtures, bathroom fittings, and internal finishes.
• Site costs: Essential preparation (such as soil testing, slab requirements and service connections) is included upfront in fixed-price packages.
• Basic landscaping and driveway: Some turnkey packages may include turf, fencing, a letterbox, and a concrete driveway.
• Council approvals: Many builders manage the process of seeking council approvals. This ensures your build won’t be held up by red tape.
• Warranty and compliance: All new homes come with structural and statutory warranties.

What’s usually not included

• Premium upgrades: These upgrades include options such as luxury appliances, custom joinery, or designer finishes.
• Significant structural changes: These would be any major changes to the standard plan.
• Final landscaping or external works: This often isn’t included unless it’s part of a turnkey offer.
• Ongoing maintenance: Any maintenance that may be required after the build is complete.

Packages differ between building companies, so it’s important to review your contract carefully.

In particular, make sure all inclusions, exclusions, and potential extra costs are clearly listed. This will help you understand exactly what is and isn’t part of your new-home build.

Types of house and land packages available in Australia

There are several types of house and land packages available in Australia. It is worth familiarising yourself with them to help you choose the best option.

House and land packages – quick comparison table

Type of package	What it includes	Best for	Key advantage	Possible drawback
Fixed price package	Land and home build with site costs included	First-home buyers and families	Buyers can enjoy good price certainty	Fewer structural changes are possible
Turnkey package	Fully completed home ready to move into immediately	Families and investors who don’t want to wait	The property is ready to move into straight away	Buyers may incur higher upfront costs than a fixed price
Custom package	Land and flexible home design options	Families wanting personalised features	A significant degree of customisation is available to buyers	There may be longer design and approval times involved

Fixed price package

A fixed-price package is one of the most popular types of house and land packages in Australia. It includes the land and the home build. Most importantly, the site costs are genuinely included up front. This means items like soil testing, slab design, retaining needs, and connection fees are factored into the price from the beginning.

Best for: This is a good option for first-home buyers, young families, and anyone who wants to budget without unexpected extra costs.

Pros:

• You receive clear pricing with fewer surprises.
• The standard inclusions are fully detailed up front.
• The build process is simple because the main variables are controlled.

Cons:

• There may be limits on how many structural changes you can make.
• Some upgrades may increase the final price.

Turnkey package

A turnkey house and land package is a fixed-price, all-in-one deal that includes both the land and a new, move-in-ready home. 

The term “turnkey” means the property is fully completed – all you need to do is turn the key and move into your new home. It includes all the essentials, such as flooring, window treatments and landscaping. 

Best for: This is a good option for families, first-time buyers, and investors who want to move into a completed, brand-new home as soon as possible.

Pros:

• There’s no need to organise tradies to do the final touches.
• It offers a faster timeline to rent out or occupy the home.
• It’s a relatively stress-free option compared to others.

Cons:

• You generally pay higher upfront costs because the inclusions are completed.
• The ability to personalise the home is limited.

Custom package

A custom package offers more flexibility in the home design options. It allows buyers to personalise layouts, facades and finishes, while still securing the land they want through the same provider.

Best for: This is a good option for families or first-time buyers who want a property that reflects their lifestyle and personality.

Pros:

• It offers significant flexibility in the design process.
• It’s easier to customise spaces for your specific needs.

Cons:

• A longer planning period is involved.
•  There may be delays when seeking council approvals.
• The cost may vary significantly, depending on what selections you make.

What are the alternatives to house and land packages?

A house and land package is a popular way to build a new home in Australia, but it’s not the only option. Here are some of the main alternatives you might want to consider.

1. Buying land and building separately

This option gives you full control over where you buy land and who will build your home. First, you select the block. Then you work with a builder on a customised design.

On the plus side, this approach offers you greater flexibility. However, there are some things to keep in mind:

• You’ll do more project management and coordination.
• You’ll need to draw up separate contracts.
• It requires a deeper understanding of progress payments.
• You’ll need to take out construction loans.
• You’ll need to secure council approvals. 

Buyers who want a personalised home design are most likely to pick this option.

2. Buying an established home

Purchasing an existing property is the fastest way to get yourself into a completed home. It’s popular with buyers who want to move in somewhere as quickly as possible.

There’s no waiting for the property to be built, and you can assess it in person before deciding to put in an offer.

You should be aware that older homes may have maintenance issues, repairs that will need to be carried out and layouts that might not suit modern living. But if you address these issues, you could significantly improve the value of a home.

3. Knockdown rebuild

A knockdown rebuild allows you to stay where you are while upgrading to a brand-new home. The existing property is demolished. A new design is then built on your current block. 

It’s an excellent option for those who love where they currently live but want to have a more modern home.

The main things you’ll have to think about here are what the demolition will cost, what temporary accommodation you’ll stay in, and whether your new home will be compliant with local planning regulations.

4. Buying a turnkey completed home

Some builders offer finished, move-in-ready homes on newly developed estates. As they are completed homes, there are no construction timelines. You also know exactly how much they will cost.

This is a good option for investors, busy professionals and buyers who just want a quicker option.

Comparison of house and land package alternatives

Alternative	What it is	Why choose it?	Best for
Buying land and building separately	You purchase a block of land first, then select your own builder and home design	Full flexibility in design, choice of builder and custom features	Buyers who want a personalised build with a process they have more control over
Buying an established home	You purchase an existing, move-in-ready property	The fastest way to secure a home without waiting for construction	Buyers who need immediate occupancy or prefer established suburbs
Knockdown rebuild	You demolish an existing home and build a new one on the same piece of land	The ability to stay in your location while upgrading to a modern home	Families who love their neighbourhood but need more space or better layouts
Buying a turnkey completed home	You purchase a fully finished home that’s ready to move into and includes all essential fittings	Predictable costs, no construction timelines and minimal stress	Buyers and investors who want a quicker and hassle-free option

How to decide if buying a house and land package is right for you

If you’re not sure whether buying a house and land package is right for you, here are some things you can do to help you decide.

1. Research the builder

A good place to start is by doing due diligence on the building company. Look for companies that have several positive customer testimonials on their website and reviews on sites like Google and Trustpilot. Additionally, ask about the licences they hold and their industry affiliations. 

This should help you find a qualified home building company with a good reputation and a successful track record.

2. Inspect previous builds and display homes

Most reputable builders showcase their work through display homes or recently completed projects. It’s a good idea to visit these sites, as it will help you better understand what type of home they can build for you.

When visiting these properties, keep an eye out for their build quality, the standard inclusions they offer and the other house designs in their portfolio. It’s also a good opportunity to get a feel for what their team members are like.

3. Understand the entire build process

Buying a house and land package is a significant undertaking, but one that can yield great rewards. For this reason, you should take the time to fully understand what it entails.

Ask your builder to walk you through the entire build process, from the moment you sign a contract to when they hand over the keys to you.

Be sure to clarify the key stages of the build. Also, confirm at what stages payments will be required, whether council approvals are needed and how long the build will take.

4. Ask about inclusions and exclusions

Not all packages include the same features. It’s important to review what’s included in the fixed price and what counts as upgrades or extra costs.

In particular, pay attention to flooring, appliances, facade options, internal finishes and landscaping. Sometimes these are included in a house and land package. Sometimes they aren’t.

5. Review the estate’s future development plans

If you’re buying into a new estate, it’s advisable to find out what’s planned for the surrounding area.

The planned works of main roads, transport links, future parks, schools, and shopping centres can all impact the long-term value of your home and your lifestyle. This is especially important if your family plans to live in it for many years. It’s also a key consideration for investors who want to maximise their ROI.

6. Book an appointment with builders or consultants

Organising a consultation with a home builder is the best way to determine whether buying a house and land package is the right thing for you to do. 

During a face-to-face or virtual meeting, you’ll be able to ask questions, explore designs and get a better understanding of the cost and payment structure.

Most companies, including Provincial Homes, do this for free. Our experts can guide you through every detail of your house and land package. Contact us today to explore your options.

Summing up

A house and land package is a great option for those who want to buy a home. It combines the process of purchasing land and building your dream home into one smooth experience.

If you’re interested in learning more, we’re here to help you every step of the way.

Reach out to us today to get started.

FAQs

Are house and land packages cheaper than buying an existing home?

They can be. However, this depends on various factors, including the locations, age and state of an existing home, as well as the stamp duty, legal fees, and market conditions.

That said, house and land packages can offer good value because everything within them is new, energy-efficient and under warranty.

How long does the construction process take?

Most new home builds take several months to complete. The specific timeframe of yours will depend on various factors. They include the design of the home you’ve chosen and the time of the year you want it to be built. 

Additionally, the weather, any required council approvals and the construction process will all affect the timeline.

Can I customise the home design?

Many builders offer a range of house design options that you can customise to your taste through upgrades or specific add-ons.