House and Land Packages Explained

Among the many ways to build a new home, one of the most popular in Queensland is the House and Land package.

It’s an appealing idea: a brand-new home, designed your way, at a fixed price with fewer surprises. But before you sign, it pays to understand how these packages work.

What is a House and Land Package?

A House and Land package bundles together:

• Land: You purchase a block from a developer.

• House: You choose a builder and design to suit the block.

Because many builders partner with developers, these packages are sold as a single deal. The big advantage? Fixed price contracts that lock in both land and construction — giving you more certainty and fewer unexpected costs down the track.

How They Work

There are two ways to go about it:

1. Buy the package as a bundle – choose both land and design together.

2. Buy land first, build later – secure your preferred block, then select a builder when you’re ready.

How They’re Financed

Unlike buying an established home (where you only take out a standard mortgage), house and land packages usually involve two loans:

1. Vacant Land Loan

   
   

   • Covers the land purchase.

   • You start repayments once settlement occurs.

   • Stamp duty is only payable on the land component.

   • First home buyers may qualify for stamp duty concessions and the First Home Owner Grant (FHOG).

   
   

2. Construction Loan

   
   

   • Funds the build in stages (known as progress payments).

   • You’re only charged interest on the funds released to date.

   • A typical six-stage schedule might look like this:

     
     

     • Deposit: 5%

     • Base: 15%

     • Frame: 20%

     • Lock-up: 25%

     • Fix: 20%

     • Completion: 15%

     
     

   • Always secure pre-approval first so you know your budget. Keep a buffer for upgrades or unexpected costs.

   
   

What’s Included

The appeal of these packages is personalisation. Builders usually offer:

• Design choices: layouts, facades, colours, finishes.

• Inclusion levels: standard vs premium upgrade sets.

👉 Tip: Review the full inclusion list carefully so you know exactly what’s covered and avoid costly surprises.

Timeline

Building times vary but typically:

• Single-storey home: 5–6 months.

• Delays can occur due to trade availability, materials, or weather.

The Takeaway

House and Land packages can be a smart way to build:

• Certainty with fixed pricing.

• Flexibility to design your dream home.

• Savings on stamp duty and potential grants.

But like any property decision, it pays to do your homework — compare builders, understand the finance process, and plan ahead for hidden costs.