What is a House and Land Package? …and Are They Exclusive?

15th May 2023

Pre-Construction

This article explores house and land packages, detailing how they work, pricing factors, whether they are exclusive, and expert tips to help make informed decisions when selecting a package.

What is a House and Land Package? …and Are They Exclusive?

Welcome to the Home Building Hub Podcast recap! In this episode, Colin Bischof and Darren Brennan take an in-depth look at house and land packages, breaking down what they are, how they work, and whether they are exclusive. If you’re an Australian home buyer exploring your options, this episode provides essential insights to help you make informed decisions. Let’s dive in!

What Is a House and Land Package?

A house and land package is a streamlined way to build a home. Here’s how it works:

• Collaboration: Builders partner with land developers to offer blocks of land alongside pre-designed homes.

• House design: Builders tailor house designs to fit specific blocks, factoring in:

  • Site costs
  • Council requirements
  • Covenants and design guidelines (e.g., facades or landscaping requirements).

• Convenience: The home and land are combined into a single package, simplifying the process for buyers.

Example:

Imagine a young couple looking to build their first home. They work with a builder who finds a block in a local estate and designs a home tailored to the block’s dimensions and council regulations. The builder combines these into one package, saving them time and effort.

How to Find House and Land Packages

You can discover house and land packages through:

• Builders’ websites and display homes
• Real estate platforms like Realestate.com.au
• Land estate offices or their websites
• Social media or email marketing from developers and builders.

Evaluating Builders and Developers

When exploring these sources, ensure you:

• Research builder reputations by reading reviews.
• Visit display homes to assess build quality.
• Ask questions about included features and timelines.

Are House and Land Packages Exclusive?

The short answer is sometimes. Exclusivity depends on several factors:

• Exclusive blocks: Some developers provide blocks exclusively to certain builders for a period.
• Builder-owned blocks: Builders occasionally purchase blocks to create exclusive packages.
• General availability: Most blocks are non-exclusive, meaning they’re open to multiple builders.

Understanding Package Pricing

When evaluating a house and land package, the price usually includes:

• Land price: The developer’s listed cost for the block.

• Base house price: The starting price for the home design.

• Additional costs: These can include:

  • Site costs (fixed or allowances)
  • Government fees
  • Promotions or upgrades (e.g., flooring, appliances, facades).

Real-World Example:

For a package advertised at $500,000, the breakdown might look like this:

• Land price: $250,000
• Base house price: $200,000
• Site costs and upgrades: $50,000 Pro Tip: Builders often deduct the First Home Buyer Grant from advertised prices to appeal to eligible buyers. Always confirm what’s included in the package to avoid surprises.

Tips for Choosing the Right Package

1. Ask for the best land price: You might save thousands by negotiating.
2. Don’t fixate on facade images: Many packages allow for facade swaps, though estate-specific guidelines may apply.
3. Avoid searching endlessly: Narrow down your preferences for location, home design, and budget to avoid feeling overwhelmed.
4. Communicate effectively: Provide your phone number and be responsive to inquiries to ensure a smoother process. Providing an email only is pointless, and only puts you to the bottom of the list.
5. Be prepared for flexibility: Packages are a starting point. Expect adjustments to fit your needs.

Checklist:

• Determine your budget and preferred location.
• Decide on essential home features (e.g., bedrooms, living spaces).
• Compare packages online and visit display homes.
• Speak to sales consultants for personalized advice.

Key Takeaways

• House and land packages simplify the home-buying process but require careful consideration of inclusions and exclusions.
• Most packages are non-exclusive, but some blocks or designs may be tied to specific builders.
• Packages are lead generators for builders; don’t hesitate to inquire about options that fit your vision.
• Build confidence by discussing your needs with sales consultants—they’re there to help!

FAQ

Q: What is a covenant?

A: A covenant is a rule or restriction placed on a property by a developer, often dictating aspects like facade styles or landscaping requirements.

Q: How do I ensure the advertised price matches what I’ll pay?

A: Ask for a detailed list of inclusions and exclusions in the package to avoid surprises.

Q: Can I change the house design in a package?

A: It does depend on the Builder or Range, but yes, most builders allow some changes, though changes may affect the final price.

Listen to the Full Episode

For a detailed breakdown of house and land packages and exclusive insights, check out the full episode of the Home Building Hub Podcast: What is a House and Land Package? …and Are They Exclusive?.