The concept of house and land packages is reshaping the home building landscape, presenting a compelling option for those looking to craft their unique living spaces and build their dream home in Western Australia's vibrant capital. 

Let's explore what to know when buying a house and land package.

What are house and land packages?

House and land packages streamline the home building process. Instead of purchasing land and then seeking a builder, these packages combine the two steps. 

Buyers can select a plot and a home design that fits it perfectly. With a single transaction, they can secure both the land and the construction of their new home. 

This often results in cost savings, more straightforward financing options, and a more streamlined process overall.

What is the difference between a house and land package and buying off-plan?

While house and land packages are a package deal, when buyers purchase the plot of land and the home that will be built on it simultaneously, buying “off the plan” or “off plan” is more of a leap of faith. It means buying a home based on architectural plans. 

A house and land package will usually involve two contracts - one for the house and the other for the land - while the off-plan means a single contract. House and land packages will also offer buyers some customisation options. 

When it comes to a house and land package vs. off the plan, off the plan may offer less flexibility and be more of a leap of faith. 

How do house and land packages work?

How a house and land package works depends on the developer, and the package. Usually, property developers or building companies will package together various blocks of land with different house designs. Once you’ve selected a block of land and a house design, you will sign two contracts, one for the house and one for the land. 

On the finance side, people often take out a land loan to purchase the home, as well as a construction loan to cover the costs of the build.  You will need a deposit for these. 

You will then pre-select the design of your home from a selection of options, although there may be options to customise.  

Can you customise a house and land package?

House and land packages usually come with a set of standard inclusions, such as basic landscaping, a driveway, a kitchen with standard appliances, and bathroom fixtures.

The designs are pre-set, which means that they have been pre-approved by local councils and fit within the developer's construction plans.

At Novus, however, we offer the opportunity to fully customise your home because we know how important it is that it suits you. 

What’s included in a house and land package?

The inclusions for building a new home differ with each builder, but luxury builders like Novus offer a more high end home, with better finishes and inclusions than builders aimed at helping young first homebuyers. 

Design

You typically choose from a range of pre-designed homes that the builder offers. These designs are created to complement the lot size and shape, and they often follow the latest trends in architecture.

Construction

The price includes the building of the house using standard materials. Upgrades to materials can usually be made at an additional cost.

Structural work

These include the foundation, walls, roof, windows, and doors of the house.

Interior elements

Basic interior features include walls, flooring, standard electrical fittings, bathroom fixtures, and a kitchen with cabinetry and appliances.

Finishes

Standard finishes usually consist of a range of tiles, carpets, and paint. Higher-quality finishes are often available at an extra cost.

Optional inclusions

You will usually have the option to include an upgrade to your fixtures and fittings, as well as your appliances, if there are higher-end models that you like. 

Some house and land packages will include landscaping, but if not, it can be an extra add-on, as can driveways, fencing and air conditioning upgrades. 

What are the advantages of house and land packages?

A house and land package has a number of benefits, including both the amount of money and time that you might have to spend on the build process. 

Simplified process

One of the huge advantages of a house and land package is how much more streamlined the process is. Having the same company in charge of both the land you’re developing and the home you’re placing on it means the entire process can be centralised. 

Dealing with a single entity reduces the chance of miscommunication and means that things can proceed smoothly. 

Fixed price

Many packages, including Novus Homes’ packages, come with fixed-price building contracts, providing cost certainty and protecting you from unexpected increases in building material or labour costs. This makes budgeting and financing easier.

Cost-saving benefit

Speaking of budgeting, house and land packages are often more reasonable than buying both separately, as the developer is able to bundle some of the costs together and make it more competitive. 

Swifter process

While it’s not definitively quicker to build on a house and land package, choosing the house and land together, rather than having to search for land and then look for an appropriate design. Pre-selections can also speed up the process, and an experienced developer like Novus will make the process feel seamless through open communication and complete transparency.  

How long does a house and land package take to be constructed? 

As with all builds, it depends on the individual circumstances. You do need to factor in the titling of new land, and the process of getting designs approved, before you move onto the actual build process, which is likely to take up to 12 months for a single storey home and longer for a larger, more complex design. 

How to finance a house and land package

Financing a house and land package works on the same principles as any other house purchase, in that you will need a deposit and a loan. 

With a house and land package, however, one loan is likely to become two. 

Two-pronged approach for a loan

Initially, you might take out a land loan, and once you're ready to build, you'd transition to a construction loan. It’s important to note that this could mean two sets of loan application processes, fees, and potentially varying interest rates.

Without a fixed package deal, construction costs can vary based on builder agreements, design changes, and unforeseen challenges. This requires diligent budgeting and often a buffer for unexpected expenses. At Novus Homes, we offer fixed price contracts exactly to avoid this issue. 

How much of a deposit do you need? 

Some lenders may allow first time home buyers to secure a house and land package with a lower deposit, sometimes as low as 5% of the purchase price, especially when leveraging first homeowner grants. There are also government-backed organisations, like Keystart, designed to make home buying accessible for first time buyers. 

Can first time home buyers buy a house and land package? 

Yes, first time buyers can buy house and land packages, with government incentives such as the First Home Owner Grant and stamp duty concessions all applicable to a house and land package. 

House and land packages may also be able to offer a lower entry price, making them perfectly suitable for a first home buyer. 

What else do you need to consider? 

When trying to decide whether to select a house and land package, or which development company to work with, it’s important to think long-term. 

Long-term considerations

How a developer communicates while your home is being built is one thing, how they behave once the development is completed is entirely different. 

Post-completion support

When choosing a developer or house and land package, it’s worth asking what kind of after-sale support they offer, and how any defects or issues with the house are dealt with. 

Resale value

Another thing to consider when selecting a house and land package is the long-term market trends for the area you’re buying in. What is the resale value likely to be? It’s worth doing your research into trends and prices before you commit. 

How Novus can help 

Whether you opt for a house and land package, an existing property, or a separate land and build journey, understanding the financial landscape is crucial.

Here at Novus Homes, we will guide you through every step of the way and help you understand what is the best option for your unique situation and then point you in the right direction regarding a financial adviser or a mortgage broker that would be the best fit for you.

Don't hesitate to get in touch or talk to one of our friendly sales consultants on (08) 9240 8001. No matter what your question, we are here to help, so you can live your best life.