What to do when buying a House and Land package

November 13, 2019

If you’re in the market to build a new house, look at house and land packages.

For those who may not know, this term refers to a combination deal that gives you a home alongside the land where you plan to build. Many different variations of this package are available to prospective buyers. The end result is always the same: a new home on a freshly purchased plot of land.

If this sounds like a worthwhile purchasing deal for you, read on to learn all about how it works and what you should look out for. That way, you can find the best possible deal for your own house and land package.

What to Do When Buying a House and Land Package


Generally, you have two different options when it comes to these types of home and land packages:

1. Land Purchased, Home Built

This option often provides the most amount of control in getting the house that directly matches your specifications. In general, you search for a developer-owned plot of land in a current land estate or other property region. In many cases you can work with that same developer or an affiliate to construct the home on the property you decide to buy.

From a logistics standpoint, you will need to pay a deposit amount to secure the land and home construction deal. In most cases this amount is 10% of the total purchase price. This allows you to pay a stamp duty just on the land rather than the home building.

You will also need to arrange two separate loans using this method – one for the land itself and the other for the home. You’ll also likely need to continue making progress payments as the home moves through various phases of its construction.

2. House Purchased on a Builder’s Land

Conversely, many developers offer a land package where a house is already built or being built. While this option restricts how much control you have over the type of new home construction, there are a few other advantages for going this route.

You’ll typically only need to put a 5% deposit down to start the process. Additionally, you’ll face no progressive payments during construction. For many buyers, this gives them a bit more financial flexibility to rent another unit during their home’s construction. You could also save the money that would have been used toward progressive payments to place a larger down payment on the home once the construction is complete.


Identifying the developer and location that’s right for you is often easier said than done. After all, this is your new home. You want to be absolutely sure you’re getting the dream home you want in a location you’ll be happy about for years to come.

The first order of business in your hunt for a developer is to do your homework. With research, you’ll have an idea of all the different options out there in terms of home construction, land options, pricing, and more. Even better, you’ll make a much more informed decision once it’s time to make your choice.

When you’re considering a development firm, assess them based on the following characteristics:

  • Experience and Selling History: How long has this company been in business? How many other developments and new home constructions have they completed? Experience matters in this business, so make sure to work with a well-versed developer for best results.
  • Straightforward Pricing: The last thing anyone wants is an unexpected rise in overall costs during the process. This holds especially true when you’re already midway through the process with no turning back. The easiest way to confirm the cost is to verify the company uses a fixed price contract for the construction.
  • Proper Insurance and Warranties: While this seems like a presumption, always make sure that your builders have the appropriate insurance and warranty protections on your new construction.
  • Reviews and Reputation: Perhaps most importantly, take some time to see what other people are saying about your prospective developer. Read the online reviews – both positive and negative. Ask your potential neighbours what it was like to work with this company and what the quality is like after construction. Get some referrals from others to verify the company’s trustworthiness. The more you learn upfront will inevitably mean fewer surprises down the road.


Whether you’re opting for a land first/construction second package or a home on a developer’s land, you need to get an idea about the home you’ll eventually build. Why not check out some of the display homes to see your options?

This is your chance to truly see what your new home will be like. Don’t be afraid to test out the quality of the building materials, verify durability, check the details, and determine optional components and related pricing.

With just a little bit of work on your side, you can get a wonderful new home. As always, don’t be afraid to ask the tough questions to your developers and builders. In the end, it will lead you to a much better home choice that you and your family will love for years to come.