How do house and land packages work?

The short version

• A house and land package is a block and a build sold as one priced bundle, with two separate contracts: one for the land, one for the home.
• Stamp duty is charged on the land contract only. First home buyers in NSW pay none on land up to $350,000 and a reduced amount up to $450,000.
• The $10,000 First Home Owner Grant applies to new builds where land plus house comes in under $750,000.
• NSW Fair Trading rules cap the building deposit at 10 percent and give you five business days to cool off after signing.
• Compare package prices on their inclusions, because a low headline price can leave out the basics.

One of the easiest and least stressful ways to buy a new home, house and land packages are also an affordable way to get into the property market. Rawson Homes has a wide variety of packages available in some of NSW’s most desirable new suburbs, including Sydney’s south-west, north-west and ACT areas. Our expert property teams match blocks of land to our most popular home designs to ensure that your new home has the perfect orientation and ideal layout.

What is a house and land package? 

A house and land package allows a buyer to secure a block of land and the construction of a home in one process, but with two contracts.  

Offered by volume builders such as Rawson Homes and usually located on the city fringes, these packages are popular because of the security they bring. You have transparency over the combined price of the home and land from the outset, which helps with budgeting and gives you certainty about how your new home will look. 

Pros and cons of a House and Land package 

House and land packages suit many families, especially if you’re new to building and keen to secure your home in a short period of time. However, it’s important to understand what’s involved in the packages to make sure it’s the right choice for you and your lifestyle. 

Pros

• Complete package with all the hard work done for you
• No big decisions to make
• Brand new house in brand new neighbourhood
• Great variety of homes to choose from
• Homes expertly chosen to suit your block of land  

Cons

• Not usually found in established neighbourhoods
• Some newer suburbs are still building infrastructure
• It can be harder to make certain changes to some home designs, although the Rawson Homes Select and Adapt build processes offer plenty of flexibility with preset floorplan changes to suit your family’s lifestyle. 

Cost of a House and Land Package 

When buying a House and Land package through Rawson Homes, it’s good to know there are two elements to the purchase, and each includes a separate contract. The first contract is for the land only, while the second is for the house. Each is financed separately.  

Why two contracts, and what protects you

The land contract is a normal property purchase: you settle, the block is yours, and stamp duty is worked out on that price alone. The building contract is a home building contract, and NSW Fair Trading has rules about what goes in it. According to the NSW Government's home building contracts page, any residential building work worth more than $20,000 needs a written contract, the builder can't ask for a deposit of more than 10 percent of the contract price, and you get a five business day cooling off period after you sign. Have your solicitor or conveyancer look at both contracts together.

What first home buyers save

Because duty applies to the land contract only, a house and land package can cut a first home buyer's duty bill considerably. Under the First Home Buyer Assistance Scheme, Revenue NSW charges no duty on vacant land up to $350,000 and a reduced amount on land between $350,000 and $450,000. If you're comparing with an established home, the equivalent exemption stops at $800,000 with a concession to $1 million. On top of the duty saving, the First Home Owner Grant pays $10,000 towards a new home, and for a house and land package Revenue NSW applies a $750,000 cap to the combined value of the land and the building contract. Our guide to stamp duty in NSW has a worked example.

A base or package price is your starting point and a good way to compare builders on price. However, you need to have a close look at the inclusions. Many builders offer a low price to prospective clients, but exclude some basic elements, so it’s a good idea to examine the small print before you go further and make sure you are comparing like with like. At Rawson Homes we include everything you need to build your house in our all-inclusive transparent pricing, so there are no unexpected costs. 

If you need finance to secure your new home, book an appointment with our finance partner at Mortgage Advice Bureau, who are experts in the unique challenges of house and land packages.

Interested in learning more about House and Land packages?  

Discover the benefits of Rawson’s house and land packages, contact us or visit one of our display homes located throughout NSW and ACT to talk to one of our experienced sales team members.

Frequently asked questions

Do first home buyers pay stamp duty on a house and land package in NSW?

It depends on the land price. Duty is only charged on the land contract, and under the First Home Buyer Assistance Scheme Revenue NSW exempts vacant land up to $350,000 and gives a concession on land between $350,000 and $450,000. Revenue NSW has other eligibility conditions, so check its scheme page before you budget on it.

Why does a house and land package have two contracts?

Because you're buying two different things: a block of land and the construction of a home on it, and each is financed separately. The land contract is a property purchase. The building contract is a home building contract governed by NSW Fair Trading rules: a written contract for work over $20,000, a deposit capped at 10 percent, and a five business day cooling off period. Keeping them separate is also what keeps stamp duty off the build.

Can I get the First Home Owner Grant on a house and land package?

Yes, if you're eligible. The grant is $10,000 for a newly built home, and a house and land package counts as a new home. Revenue NSW caps eligibility at $750,000 for the combined value of the land and the building contract, so check the total before you rely on it.