Straight answers on house and land packages, deposits and the building process.
Yes — purchasing a house and land package can often be more economical. One of the key benefits is that you only pay stamp duty on the land portion, not on the construction costs.
As a guide, minimum deposits are typically 5% of the total cost for owner-occupied homes and 10% of the total cost for investment properties, calculated on the combined land and construction expenses. Your lender will confirm requirements for your situation.
Key advantages include reduced stamp duty, customisation options, and a streamlined process that simplifies purchasing and building your residence.
A house and land package typically involves two separate contracts: a land purchase contract for the land, and a construction contract for building your home.
The process involves three broad stages: initial deposits for land and construction, financial approval through your lender, and finally settlement with construction commencement.
The term “turnkey” refers to a property that is ready to be moved into upon completion — though it may not include all appliances and window treatments unless specified in your contract.