If you have been house hunting for more than five minutes, you have almost certainly come across the term "house and land package." Developers and builders splash them across billboards, social media ads, and display villages — but what actually is a house and land package, and is it a smart move for a first home buyer in 2026?
In this guide we break down exactly how house and land packages work, what they cost in every major Australian market (with a deep dive into Perth), turnkey versus standard inclusions, how to access tens of thousands of dollars in government grants that only apply to new builds, how construction loans work, and the common traps you need to avoid before you sign anything.
⚡ New build? You may qualify for 3+ extra schemes vs. an established home
New builds unlock the WA $10k FHOG, the QLD $30k FHOG (until 30 June 2026), NSW transfer duty exemptions on H&L up to $800k, and FHSSS contributions — schemes that are unavailable or capped lower on established property. Check your full 2026 stack in 2 minutes.
Open the Eligibility Checker →⚡ 2026 Federal Budget update (12 May): new builds now have a tax advantage over established property
The 12 May 2026 federal budget restricted negative gearing on established residential investment property acquired after 7:30pm AEST 12 May 2026 (losses ring-fenced from 1 July 2027). New builds are explicitly carved out — full negative gearing and the 50% CGT discount preserved under the old rules. Full negative gearing post-budget guide →
What Is a House and Land Package?
A house and land package is a property purchase where you buy a block of land and a new home build as a bundled transaction — usually from a developer or builder operating in a master-planned estate. Instead of searching for an existing home on the open market, you choose a lot in a new development and pair it with a home design from the builder's range.
The builder finds the land (or you find it yourself) and designs a home to suit. You sign two separate contracts — one for the land and one for the building — and the total cost is typically quoted as a single fixed price. This fixed-price structure means you know what you are paying upfront, which is a significant advantage over buying at auction where the final price is uncertain.
House and land packages are most common in growth corridors on the outskirts of Australia's capital cities — places like Oran Park and Box Hill in Sydney, Craigieburn and Tarneit in Melbourne, Springfield and Ripley in Brisbane, Baldivis and Yanchep in Perth, and Mount Barker and Angle Vale in Adelaide.
An alternative to the bundled package is buying land separately and choosing your own builder. This gives you more control over both the block and the build price, and opens you up to smaller custom builders outside the package network — but it also moves all the due diligence (zoning, easements, soil tests, titled vs untitled) onto you. Our complete guide to buying land in Australia covers what to check before signing on a vacant block.
The key distinction from buying an established home is that you are purchasing something that does not exist yet. You sign the contracts, a builder constructs the home on the land, and you move in once the build is complete — typically 6 to 12 months later. This affects your loan structure (you will need a construction loan rather than a standard home loan), your timeline for moving out of your current rental, and how you budget for the process.
How House and Land Packages Work — Step by Step
The process of buying a house and land package is different from buying an established home. Here are the ten steps from first enquiry to move-in day:
- Choose your location and estate. Research growth corridors in your target city. Visit display villages on weekends. Drive the commute during peak hour before you fall in love with a display home.
- Choose your block of land. Lots vary in size, orientation, slope, and price. North-facing backyards get the most sun. Corner lots offer more space but may have additional fencing costs. Smaller lots are cheaper but limit your home design options.
- Select a home design. Choose from the builder's range or customise. Most builders offer 10 to 50+ floor plans across single-storey, double-storey, and narrow-lot designs. Compare the standard inclusions carefully — what looks identical on paper can vary significantly between builders.
- Get finance approved. You will need a construction loan, not a standard home loan. A mortgage broker who specialises in construction loans is essential here — they will find lenders who handle progressive draw-downs well and explain the process so there are no surprises.
- Sign contracts. You will sign two contracts — one for the land purchase and one for the building contract. Keeping them separate is critical for stamp duty savings (you only pay stamp duty on the land). Your conveyancer will review both contracts before you sign.
- Land settles. You purchase the land and take ownership of the block. Your construction loan covers this, and you start paying interest on the land component from this point.
- Construction begins. The builder lodges plans with council, obtains approvals, and starts building. Typical build time is 6 to 12 months depending on the builder, design complexity, and weather.
- Progressive draw-downs. Your lender releases funds to the builder at each construction stage — slab, frame, lock-up, fixing, and practical completion. You pay interest only on the amount drawn so far, not the full loan amount.
- Practical completion and inspection. The builder notifies you that the home is complete. Before you accept handover, get an independent building inspection to identify any defects. The builder must fix defects before final handover.
- Settlement and move in. Your construction loan converts to a standard home loan, and you move into your new home. Arrange home insurance before settlement day.
House and Land Packages Perth 2026
Perth is one of the most affordable capital city markets for house and land packages in Australia — and it is where first home buyers get some of the best value in the country. With land prices significantly lower than Sydney and Melbourne, strong population growth driving demand, and generous government support through Keystart, Perth is a standout market for new builds in 2026.
Perth Price Guide
House and land packages in Perth typically range from $400,000 to $700,000 depending on location and home size. Land is typically $200,000 to $350,000 and builds are $200,000 to $350,000 for a solid 3 to 4 bedroom home. This makes Perth significantly more affordable than Sydney ($650K–$900K) and Melbourne ($550K–$800K).
Popular Perth Growth Corridors
| Corridor | Direction | Typical H&L Price | Key Features |
|---|---|---|---|
| Baldivis | South | $450K–$600K | Established schools, shopping, close to Rockingham |
| Piara Waters | South-east | $500K–$650K | Premium estate, excellent schools, parks |
| Byford | South-east | $420K–$550K | Semi-rural feel, growing infrastructure |
| Yanchep | North | $380K–$500K | Cheapest corridor, beach proximity, train coming |
| Alkimos | North | $400K–$530K | Coastal, beach access, new train station |
| Ellenbrook | North-east | $430K–$580K | Established suburb, shopping centre, new train |
Perth Builders
Major house and land package builders operating in Perth include HomeGroup WA, Summit Homes, Dale Alcock Homes, Plunkett Homes, and ABN Group. All are HIA members and have been building in WA for decades. Research Google Reviews and visit display homes before committing — quality varies even within the same builder depending on the site supervisor allocated to your build.
Keystart for House and Land in Perth
Keystart is a WA Government initiative that allows first home buyers to purchase with as little as a 2% deposit and no Lenders Mortgage Insurance (LMI). Keystart covers house and land packages up to $800,000 in Perth — making it possible to buy a new home with a deposit as low as $8,000 to $14,000. Combined with the WA FHOG of $10,000, some buyers can get into a new home with almost nothing out of pocket. Check the full WA first home buyer grants breakdown for eligibility.
Affordable House and Land Packages — Under $500K
If you are looking for affordable house and land packages under $500,000, they exist — but you need to know where to look and what compromises to expect at this price point.
Where to Find Packages Under $500K
- Perth outer suburbs: Yanchep ($380K+), Baldivis ($450K+), Byford ($420K+), Mundijong ($400K+). Perth is the easiest capital city to find affordable house and land packages.
- Adelaide: Mount Barker ($380K+), Angle Vale ($370K+), Munno Para ($350K+). Adelaide is the cheapest mainland capital for new builds.
- Queensland corridors: Ripley ($450K+), Yarrabilba ($430K+), Pimpama ($460K+). QLD's $30,000 FHOG effectively reduces a $500K package to $470K.
- Regional centres: Geelong (VIC), Toowoomba (QLD), Mandurah (WA), and Murray Bridge (SA) offer packages from $350K.
What You Get Under $500K
At this price point, expect a 3-bedroom single-storey home on a lot of 300 to 450 square metres. Standard inclusions only — no upgraded kitchen, no air conditioning, no landscaping. The block will be in an outer growth corridor, typically 30 to 50km from the CBD. You will need to budget an additional $15,000 to $30,000 for extras to make the home liveable (flooring, window treatments, fencing, basic landscaping). A turnkey package at this price point eliminates those surprises. Use our borrowing power calculator to see what you can afford.
Turnkey vs Standard Inclusions — What's the Difference?
This is one of the most important distinctions in house and land packages — and the one that catches the most first home buyers off guard.
| Item | Standard Package | Turnkey Package |
|---|---|---|
| Flooring | Bare concrete or basic carpet | Tiles, vinyl plank, carpet throughout |
| Window treatments | Not included | Blinds or curtains |
| Air conditioning | Not included | Split system or ducted |
| Front landscaping | Bare dirt | Turf, garden beds, path |
| Driveway | Not included | Concrete or paved |
| Fencing | Not included | Colorbond on all boundaries |
| Letterbox | Not included | Included |
| Clothesline | Not included | Included |
The price difference: Turnkey packages typically cost $20,000 to $40,000 more than standard packages. But here is the catch — if you buy a standard package and add all these items yourself after handover, it often costs $30,000 to $60,000 because you are paying retail prices to individual contractors rather than builder-negotiated bulk rates.
Our recommendation: Always ask for a turnkey quote alongside the standard quote. Compare the total cost of standard-plus-extras versus turnkey. In most cases, turnkey is better value and eliminates the stress of coordinating multiple tradies after you move in. More importantly, turnkey costs are rolled into your home loan — meaning you finance the extras at home loan rates (around 6%) rather than putting them on a credit card or personal loan at 15 to 20%.
First Home Buyer House and Land Packages — Grants and Schemes
House and land packages are where first home buyers get the biggest financial advantage. Because they are classified as new builds, they qualify for grants and concessions that are simply not available for established homes.
| State | FHOG Amount | Price Cap | Stamp Duty Benefit | Details |
|---|---|---|---|---|
| WA | $10,000 | $750,000 | Exemption for new homes under $530K | WA grants → |
| QLD | $30,000 | $750,000 | Concession for new homes under $550K | QLD grants → |
| NSW | $10,000 | $750,000 | Exemption for new homes under $800K | NSW grants → |
| VIC | $10,000 | $750,000 | Concession for new homes under $750K | VIC grants → |
| SA | $15,000 | $650,000 | Exemption for new homes under $650K | SA grants → |
On top of state grants, federal schemes make house and land packages even more accessible for first home buyers:
- First Home Guarantee: Buy with a 5% deposit and no LMI. Available for new builds within price caps. See our Family Home Guarantee guide for details.
- First Home Super Saver Scheme (FHSS): Withdraw up to $50,000 from super for your deposit with significant tax savings. See our FHSS guide for the full breakdown.
- Keystart (WA only): 2% deposit, no LMI, for house and land packages up to $800,000. See our Keystart guide.
Combined with stamp duty savings, a first home buyer purchasing a $600,000 house and land package in Queensland could save over $50,000 compared to buying a $600,000 established home. In WA with Keystart, a buyer could get into a $500,000 house and land package with just a $10,000 deposit plus the $10,000 FHOG — effectively $0 out of pocket.
Stamp Duty on House and Land Packages
When you buy an established home, you pay stamp duty on the full purchase price. But when you buy a house and land package, you only pay stamp duty on the land component — because the building does not exist yet at the time of the land transfer. This saves thousands.
Worked example — $600,000 house and land package in WA:
| Scenario | Stamp Duty Base | Approx. Stamp Duty | FHOG | Total Saving |
|---|---|---|---|---|
| Established home at $600K | $600,000 | ~$22,000 | $0 | — |
| H&L package at $600K (land $250K) | $250,000 | ~$7,600 | $10,000 | ~$24,400 |
Important: To get the stamp duty benefit, the land and build contracts must be separate. If you sign a single combined contract, you may be liable for stamp duty on the full amount. Your conveyancer will ensure the contracts are structured correctly. Use our stamp duty calculator to see the exact numbers for your state and price range.
Construction Loans — How Financing a House and Land Package Works
Financing a house and land package is different from a standard home loan. You will need a construction loan — a specialised product designed for building a new home. Here is how it works:
How Construction Loans Differ from Standard Home Loans
- Progressive draw-downs: Instead of receiving the full loan amount upfront, your lender releases funds to the builder in stages as construction milestones are reached.
- Interest-only during construction: You pay interest only on the amount drawn so far — not the full loan amount. This keeps your payments lower during the build phase.
- Land settles first: Your loan covers the land purchase at settlement. You start paying interest on the land component from this point.
- Converts to standard loan: Once the build is complete, the construction loan converts to a standard principal-and-interest home loan.
The Five Construction Stages
| Stage | Description | Typical % of Build Cost |
|---|---|---|
| 1. Slab / Base | Concrete slab poured, plumbing roughed in | ~15% |
| 2. Frame | Timber or steel frame erected, roof trusses on | ~20% |
| 3. Lock-up | Roof on, windows and external doors installed | ~20% |
| 4. Fixing | Internal walls, kitchen, bathroom, electrical | ~25% |
| 5. Practical Completion | Painting, final fixtures, clean, ready for handover | ~20% |
Not all lenders handle construction loans well. Some have slow draw-down processes that delay your builder and extend the build timeline. A mortgage broker who specialises in construction loans will match you with a lender who processes draw-downs quickly and has experience with new builds. This is one area where using a broker makes a genuine difference to your build experience.
For a deeper walk-through of the 5 stages, progress payments, contract clauses, and what inspections to book at each stage, see our complete guide to building a house in Australia — it covers everything from site cost blowouts to handover defect lists.
Common Traps to Avoid with House and Land Packages
House and land packages are generally a smart move for first home buyers — but there are traps that catch people out. Here are the most common ones and how to protect yourself:
1. Site Costs That Blow Out the "Fixed Price"
"Fixed price" does not always mean fixed. Most builders quote a base price assuming standard soil conditions. If your block has rock, reactive clay, sand, or a slope, you will face additional "site costs" — rock removal, piering, retaining walls, or additional engineered fill. These can add $10,000 to $30,000 on top of the quoted price. Always ask the builder for a site cost estimate specific to your lot before you sign. Better yet, get an independent soil test done ($500 to $1,000) — it is cheap insurance against a nasty surprise.
2. Standard Inclusions That Leave You With a Shell
A "standard" package can mean you receive a home with bare concrete floors, no window coverings, no air conditioning, no fencing, no driveway, and a front yard of bare dirt. Always get a full written list of inclusions and exclusions. Compare this against a turnkey package. The $20,000 to $40,000 extra for turnkey is almost always worth it.
3. Sunset Clauses
Building contracts include a sunset date — a deadline by which the builder must complete the home. If the builder fails to meet this deadline, some contracts allow the builder (not you) to extend the deadline or even cancel the contract. Read the sunset clause carefully. Ask your conveyancer to negotiate a clause that gives you the right to cancel if the builder exceeds the deadline by more than a reasonable period.
4. Verbal Promises Not in the Contract
If a salesperson promises an upgrade — "we will throw in ducted air con" or "the premium kitchen is included" — get it in writing in the contract. Verbal promises are not enforceable. If it is not in the contract, it does not exist.
5. "Free Upgrades" Already Priced In
Some builders advertise "$50,000 in free upgrades" — but these upgrades are simply included in the base price, which is inflated to accommodate them. Compare the total package price against competitors, not the value of the "freebies." The cheapest package with no free upgrades may be the better deal.
6. Not Getting an Independent Building Inspection
Before you accept handover at practical completion, get an independent building inspector to check the home. They will identify defects that the builder's own quality check may miss — cracked tiles, paint defects, plumbing issues, waterproofing problems. The builder is legally obligated to fix defects before handover. A building inspection costs $300 to $500 and can save you thousands in rectification costs later. Read our building and pest inspection guide for the full handover checklist and what to ask the inspector to focus on.
House and Land Packages by State — Price Guide 2026
| State | Typical H&L Range | FHOG | Key Growth Areas |
|---|---|---|---|
| WA | $400K–$700K | $10,000 | Baldivis, Yanchep, Byford, Piara Waters, Alkimos |
| QLD | $450K–$750K | $30,000 | Springfield, Ripley, Pimpama, Yarrabilba |
| SA | $350K–$550K | $15,000 | Mount Barker, Angle Vale, Munno Para |
| VIC | $500K–$800K | $10,000 | Craigieburn, Tarneit, Clyde North, Officer |
| NSW | $600K–$900K | $10,000 | Oran Park, Marsden Park, Box Hill, Leppington |
For comparison, established home median prices in capital cities range from $600,000 (Adelaide) to over $1.1 million (Sydney). While house and land packages in growth corridors are further from the CBD, they are significantly cheaper and come with grants, stamp duty savings, and a new home warranty. For a full breakdown of new home warranty insurance and what it covers, see our dedicated guide.
How to Choose a House and Land Package
Location and Lifestyle
Growth corridors are further from the CBD, which means longer commutes. Before you commit, drive the commute during peak hour. Check what schools, shops, medical centres, and public transport are already in the area — not just what is "planned." Developer master plans are aspirational, not guaranteed.
Builder Reputation
Research the builder thoroughly. Check their registration with the relevant state authority (QBCC in Queensland, VBA in Victoria, Fair Trading in NSW, Building Commission in WA). Look for HIA or MBA membership. Read Google Reviews and check Whirlpool and ProductReview for real owner experiences. Ask for addresses of recently completed homes to drive by and see build quality in person.
Contract Terms
Insist on a fixed-price contract. Check what is included and excluded. Common exclusions on standard packages include: site costs, driveway, fencing, landscaping, letterbox, clothesline, window treatments, flyscreens, and air conditioning. Get a written list of inclusions before you compare packages.
Display Village vs Reality
Display homes feature top-end finishes, upgraded fixtures, and professional styling. The base package will look different. Ask to see the standard inclusions list, not the display home upgrades. Better yet, visit a recently completed home built on a standard package to see what you are actually getting.
Is a House and Land Package Worth It in 2026?
Pros
- Government grants: $10,000 to $30,000 in FHOG that only applies to new builds
- Stamp duty savings: Pay on land only, saving $10,000 to $25,000 versus an established home
- New home warranty: 6 years structural, 2 years non-structural — full warranty guide
- Modern energy efficiency: 7-star NCC rating, better insulation, lower energy bills
- Fixed-price certainty: You know the total cost before you sign (assuming no variations)
- Low maintenance: Everything is new — no surprise repairs for years
Cons
- Build timeline: 6 to 12 months construction, plus council approvals — you pay rent during this period
- Further from CBD: Growth corridors mean longer commutes, fewer established amenities
- Site cost surprises: Soil conditions can add $10K to $30K if not checked upfront
- Limited character: New estates lack the charm and established trees of older suburbs
- Builder risk: If your builder goes into administration mid-build, it can be a nightmare
Bottom line: House and land packages make the most financial sense for first home buyers who want maximum government grants, stamp duty savings, and a brand-new home with warranty protection. If you value inner-city living, established streetscapes, and character homes, an established property will suit you better — but you will pay more and miss out on the grants.
Ready to start? Talk to a construction loan broker about your budget, calculate your borrowing power, and check your stamp duty savings. For WA buyers, read our Keystart guide — a 2% deposit could get you into a new home sooner than you think.
Frequently Asked Questions
What is a house and land package?
A house and land package is a bundled purchase where you buy a block of land and a new home build together — usually from a developer or builder in a master-planned estate. You sign two separate contracts (land and build), the builder constructs the home, and you move in once it is complete. House and land packages are eligible for FHOG grants in every Australian state and offer stamp duty savings because duty is calculated on the land only.
How much does a house and land package cost in Perth?
House and land packages in Perth range from $400,000 to $700,000 depending on location and home size. The most affordable corridors are Yanchep ($380K+), Byford ($420K+), and Mundijong ($400K+). Premium corridors like Piara Waters and Baldivis range from $450K to $650K. Land is typically $200,000 to $350,000 with builds from $200,000 to $350,000 for a 3 to 4 bedroom home.
Are house and land packages cheaper than buying established?
Often yes, especially when you factor in grants and stamp duty savings. A first home buyer purchasing a $600,000 house and land package in Queensland saves over $50,000 compared to a $600,000 established home — thanks to the $30,000 FHOG and stamp duty on land only. However, you need to account for extras not included in standard packages and the opportunity cost of waiting 6 to 12 months for the build.
What is a turnkey house and land package?
A turnkey house and land package is move-in ready — everything you need to live in the home is included in the price. That means flooring, window blinds, air conditioning, front landscaping, driveway, fencing, and letterbox. Standard packages exclude most of these items, which can cost $30,000 to $60,000 to add yourself. Turnkey typically costs $20,000 to $40,000 more than standard but is almost always better value.
Can I use the First Home Guarantee for a house and land package?
Yes. The First Home Guarantee allows eligible first home buyers to purchase with a 5% deposit and no Lenders Mortgage Insurance (LMI). New builds including house and land packages are eligible within price caps ($800,000 in Perth, $900,000 in Sydney). Combined with the FHOG, this means you could buy a $600,000 house and land package with a $30,000 deposit and no LMI — plus receive $10,000 to $30,000 in grants depending on your state.
What are site costs in a house and land package?
Site costs are additional charges for preparing your specific block of land for construction. They cover rock removal, retaining walls, piering for reactive clay soil, additional engineered fill, and slope correction. Site costs can add $10,000 to $30,000 on top of the quoted "fixed price." Always request a site-specific cost estimate before signing. Getting an independent soil test ($500 to $1,000) before committing to a lot can prevent a nasty surprise.
How long does it take to build a house and land package?
Typically 6 to 12 months from slab pour to handover. Total timelines from contract signing to move-in can be 9 to 15 months once you include council approvals and site preparation. During periods of high demand, build times can blow out to 18 to 24 months. Ask your builder for a realistic written timeline and check the sunset clause in your contract before you sign.
Can I use Keystart for a house and land package?
Yes. Keystart is a WA Government initiative that covers house and land packages up to $800,000 in Perth. It requires just a 2% deposit with no Lenders Mortgage Insurance. A $500,000 house and land package in Perth would need only a $10,000 Keystart deposit — and with the $10,000 WA FHOG, many buyers effectively get in with $0 out of pocket. See our full Keystart guide for eligibility and how to apply.
