Last updated 5 October 2026. Written by the REIN Editorial Team. Researched with the help of AI tools, then fact-checked against the sources below.
Reviewed by Scott Fraser, founder of REIN, licensed real estate agent (NSW) with 10 years on the developer side of house and land.
Quick Answer
A house and land package can be a good investment, but only if you buy it at a fair price, in a location with real rental demand, from a builder you’ve checked. The package format itself isn’t the problem. The problem is that many packages sold to investors carry a builder or marketing commission built into the price, which means you start behind on day one. Check the price against comparable sales, the bank valuation, the rent and the builder before you sign.
Already been shown a package? Get it checked before you sign.
Why Investors Buy House and Land Packages
There are sound reasons investors choose a new house and land package over an established home:
- Higher depreciation deductions. Since 1 July 2017, investors generally can’t claim depreciation on second-hand fixtures and fittings in a residential rental property. A brand-new home gives you new assets you can depreciate, plus capital works deductions on the building itself. A quantity surveyor’s depreciation schedule shows what you can claim.
- Lower early maintenance. A new home shouldn’t need major repairs in its first years, and it comes with statutory warranties on the building work.
- Appeal to tenants. New homes in established growth corridors often lease quickly.
- Staged payments. With separate land and build contracts, you usually pay for the construction in progress payments, so you’re not paying interest on the full build cost from day one.
We explain the structure in more detail in house and land packages explained.
When a House and Land Package Is a Poor Investment
Most poor outcomes come back to one of five things.
1. You paid too much
This is the biggest one. Packages marketed to investors can include a commission paid by the builder or developer to whoever sold you the package. Builder commissions can run into tens of thousands of dollars, and they’re usually built into the price rather than shown on the contract. If the price includes a commission the market won’t pay, you start with less equity than you think. See hidden commissions in property investment.
2. The bank valuation comes in low
Lenders value the property themselves. If their valuation is lower than the contract price, you may need to put in more of your own money to settle. A low valuation is also an early warning that you may have overpaid. Ask your broker to order a valuation before the contract goes unconditional where possible.
3. Too much similar stock nearby
A new estate can release hundreds of near-identical homes at once. That can hold back both rents and resale prices while the estate fills. Check how many lots are still to be released, and what similar homes nearby are renting for now, not what the brochure projects.
4. Land is a small share of the price
Over time, land tends to drive capital growth while the building depreciates. In some packages, the land is a small part of the total price. Ask for the land and build prices separately and compare the land price with recent vacant land sales in the same estate.
5. Builder and construction risk
If a builder fails mid-build, you can face delays, extra costs and an incomplete home. Check the builder’s licence, its history and that home warranty insurance (or your state’s equivalent) is in place before construction starts. Read our guide to building defects and warranties.
How to Tell If a Package Is Fairly Priced
Before you sign, work through these checks:
- Compare the land price with recent vacant land sales of similar size in the same estate or suburb.
- Compare the total price with recent sales of similar new homes nearby.
- Get the build contract inclusions in writing, including site costs, driveways, fencing, landscaping and floor coverings. Gaps here become extra costs later.
- Check the rent against current listings for similar homes, not a rental guarantee or appraisal from the seller.
- Ask directly whether anyone involved in selling you the package receives a commission, rebate or other payment from the builder or developer, and how much. Ask for the answer in writing.
Can You Negotiate a House and Land Package?
Often, yes. Builders may negotiate on the build price, inclusions or site costs, and land prices in some estates move with demand. Your position is stronger when you know what comparable land and homes have actually sold for, and what commission is sitting inside the package price.
Stamp Duty on a House and Land Package
With separate land and build contracts, duty is often assessed on the land contract only. That isn’t guaranteed. In NSW, for example, Revenue NSW can assess duty on the land and the home together where the seller is responsible for the building work before transfer. Rules differ in each state, so confirm with your conveyancer before you sign. More detail is in our guide to house and land package costs.
Is a House and Land Package Right for You?
It tends to suit investors who:
- want a low-maintenance property and higher depreciation deductions
- can hold the property for the long term
- are buying in an area with steady rental demand and limited competing new stock
- have checked that the price is fair
It suits you less if you need strong short-term growth, or if you can’t verify what’s inside the price.
How REIN Helps
REIN is a buyer-only house and land advocate. We review a package you’ve been shown, show you the builder commission built into the price, and rebate 100% (excluding GST) of that commission to you. A REIN service fee applies, and the rebate typically covers the fee and more.
Common Questions
Are house and land packages a good investment in Australia?
They can be, if the price is fair, the location has rental demand and the builder is sound. The biggest risk is paying a price inflated by commissions the market won’t pay you back.
Are house and land packages worth it?
They’re worth it when the depreciation, low maintenance and tenant appeal outweigh the risk of overpaying and slower early growth. Check the price before you decide.
Are house and land packages cheaper than established homes?
Not always. Stamp duty is often lower because it’s usually assessed on the land, but the total price can be higher than similar established homes nearby, especially if it includes a commission.
Why do bank valuations come in low on house and land packages?
The lender values what the market would pay, based on comparable sales. If the package price is above that, the valuation can come in lower than the contract.
Can I get a second opinion on a house and land package?
Yes. REIN reviews house and land packages before you sign and shows you the builder commission inside the price. Book a free review.
Been Shown a House and Land Package? Get It Checked First.
Builder commissions can run into tens of thousands of dollars, and they’re usually built into the price. We’ll show you what’s inside yours before you commit.
GET MY PACKAGE CHECKED or call 1300 446 445.
Sources
- ATO – Second-hand depreciating assets (accessed 5 October 2026)
- ATO – Work out your capital works deductions (accessed 5 October 2026)
- Revenue NSW – Dutiable transactions over land and improvements (DUT018) (accessed 5 October 2026)
Disclaimer: This guide is general information only and does not take your personal circumstances into account. It is not financial, legal or tax advice. Tax and stamp duty rules change and differ between states, so confirm with a qualified accountant, conveyancer or adviser before you act.