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  • Writer's pictureAlison Wong

What you need to know before buying house and land packages in Australia?

Updated: Apr 11

In Australia, it is popular to buy house and land packages. This is because they allow buyers to save more than 50% on stamp duty. In Australia, investors can also take advantage of depreciation rates - tax deductions. Most importantly, they can design their dream homes themselves. It is possible to select the floor plan, materials, and home features, and even a famous designer can be selected.

This article will share some basic knowledge about buying land in Australia.

Why buy a house and land package in Australia?

Many Australian “buying land” projects will be in development positions, as many houses and apartments have been built in mature areas. Often, developers will buy land to split into multiple places and sell.

Many of Australia’s “buying land” projects will be found in remote areas, including the Melbourne West District. A lot of the time, projects can be found on land that was previously used for agriculture or factories. Because the urban population increased yearly, the government planned for more residential land. This land could be used for buildings, so people could buy land to build their homes on.

What is the biggest advantages?

1. Save stamp duty

In Australia, buying land can save buyers a lot of stamp duty. Buyers only need to pay the stamp duty corresponding to the land value (the construction part does not require stamp duty). Compared with the stamp duty paid by directly purchasing existing or non-existing houses (off the plan), buying land saves considerably more in taxes.

2. Less initial investment needed

In addition, it takes less initial investment to buy land. It can be paid in installments. For buyers, this means less time is needed to prepare funds. When buying land in Australia, only 5-10% of the land price is required as a deposit, ensuring you have enough to prepare the remaining funds and handle loans.

Precautions for buying house and land package in Australia

1. Developers sell only land

If you intend to build a house in Australia, you will sign a land contract with the developer. Developers only provide land - that is, developers buy a large piece of land and then split it into smaller pockets for sale. Developers sometimes also offer architectural packages for which they can receive a rebate. In my experience, developers usually partner with small builders, though the quality may not be guaranteed. Of course, the developers will not be responsible in this situation.

2. Choose a good architect

The construction contract is the essence of the whole building. After you buy land, you will choose a suitable Australian architect to start designing the property. You will want to consider size, design, quality, and price.

3. The quality of the land affects the start of the build

When buying land in Australia, you must pay attention to the quality of your land purchase. Sometimes, different land geology will affect land prices and the cost of the building.

For example, the construction fee will increase if the land is inclined. If you opt for a more complicated design, the higher the price will be, meaning you need more funds to complete the complex design, and the cost of building will be higher.

The classification of building contracts

After buying land in Australia, you must find a suitable builder and sign building contracts. Building contracts are generally divided into two types:

1. From scratch (custom build)

When you have a concept, find a designer to implement it. Designers usually charge by the hour. Just like with a lawyer, if you call or send an email, you have to pay each time.

Therefore, if you want to find this type of designer, it is recommended that you do your homework in advance and have a clear architectural concept in mind before signing a building contract.

2. Using the template of the builder (project build)

I recommend this method because the builders’ templates are usually diverse enough to provide options. As long as you choose your favourite template, you can build a house you like in Australia with little difficulty. Because you have to pay for each change to the house yourself, coupled with the time to design and buy materials, this type of design has several opportunities for delays.

I had a friend who designed a house in Australia and then found someone to build it. The process usually takes around eight months, but it took him two years. I suggest not making your designs too complicated; instead, choose the most practical and simple design from architectural templates.

The process of building a house in Australia

The first stage is the foundation, and the second is building a bracket. The third stage is the house, doors, windows, and roof to seal the house. The fourth stage is the most intense and exciting, where you install wires, water pipes, heating, air conditioning, and decoration. If you design using architecture templates, the construction time is about 6 to 8 months. If the design is complicated, the project may not be completed for over a year.

Other tips for buying house and land packages in Australia

I have two tips to share with friends who want to buy land in Australia.

First, hiring a builder to help you inspect the building before receiving it is best. As there is no checklist to help you inspect the building, you may find problems with paint or elsewhere. It is important to remember that in the end, builders may not be held responsible for unchecked issues.

Although the law guarantees the construction structure, issues with the structure are not easy to see quickly. If you have an inspector to help you check for structural and non-structural issues, this can avoid any disputes in the future. At the same time, you can find any problems so that you can solve these in time.

The second tip is to try to choose a building design template. Whilst this provides you with a good idea of what the finished build will look like, there is potential for increased risks, like delays and changing costs. By comparison, if you create the design from scratch, the risk may be relatively high and the cost will be high. Because of this, I suggest you use the template design of the builder, as this is the easiest and fastest way to build your dream home.

You can also watch the video below to learn more about Australia property news:


Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.

When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.

So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.

Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.

Alison Australian real estate information platform

The original intention of Miss Alison to establish is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.






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