Quick answer: On a house and land package with separate land and building contracts, stamp duty in most states is generally calculated on the land price only, not the build. On top of the price, budget for conveyancing, loan and government fees, insurance and holding costs during construction. Most of the risk sits in the contracts, so have both reviewed before you sign.
This guide covers the costs of buying a house and land package as an investor, how conveyancing works with two contracts, and what to check before settlement.
Stamp Duty on a House and Land Package
Stamp duty, also called transfer duty, is charged by each state on the transfer of property. With a split contract package, you buy the land under one contract and pay a builder to build under a separate building contract. Duty is generally payable on the land contract, not the building contract, which is one reason house and land packages can cost less upfront than an established home at the same total price.
Turnkey packages sold under a single contract, or where the home is substantially built before you buy, may attract duty on a higher value. Rates, thresholds and concessions differ by state and change often, and investors usually aren’t eligible for first home buyer concessions. Use your state revenue office calculator and confirm with your conveyancer.
The Full Cost of Buying
Beyond the land and build price, investors typically budget for:
- Stamp duty on the land
- Conveyancing or legal fees for both contracts
- Loan application, valuation and settlement fees, and lenders mortgage insurance if you borrow over 80%
- Title registration and transfer fees
- Building and pest or stage inspections during construction
- Interest on the land loan and progress payments before the home is rented
- Council rates and water charges on the land during the build
- Landlord and building insurance from handover
- Variations or upgrades not included in the fixed price
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How Conveyancing Works With Two Contracts
A conveyancer or property lawyer reviews your contracts, handles searches, manages deposits and settlement, and registers the transfer. On a house and land package, they need to review two contracts that work together. Key things to check:
- Land registration: in new estates, land is often sold before its title is registered. Check the expected registration date and what happens if it’s delayed.
- Sunset clauses: the date by which the land must be registered or the contract can be ended, and who can end it
- Fixed price and inclusions: exactly what’s included, what’s a provisional sum, and how variations are priced
- Site costs: whether soil tests, retaining walls and connections are included or extra
- Build timeframe: the start and completion dates, and any compensation for delays
- Payment schedule: how progress payments are triggered and what evidence the builder must give
- Warranty insurance: that home warranty or domestic building insurance is in place as required in your state
Where the Hidden Cost Usually Is
The biggest hidden cost in many packages isn’t a fee at all. When a package is sold through a third party, the builder or developer commonly pays the seller a commission that’s built into the price. Builder commissions can run into tens of thousands of dollars, and you pay stamp duty and borrow on top of it. Here’s how hidden commissions in house and land packages work.
Questions to Ask Before You Sign
- Are the land and build under separate contracts? How much stamp duty will I pay?
- When will the land title register, and what does the sunset clause say?
- Exactly what’s included in the fixed price, and what are the provisional sums?
- Who is paid a commission on this package, and how much?
- Has my conveyancer reviewed both contracts?
- What are my holding costs from land settlement until the home is rented?
How REIN Helps
REIN acts only for buyers of new house and land packages. We check the price, both contracts and any commission built in before you sign.
REIN charges a service fee for our work, agreed in writing before you start. Where REIN receives a builder or developer commission on your purchase, we disclose it and rebate 100% (excluding GST) of it to you. The rebate typically covers the fee and more.
Common Questions
Do you pay stamp duty on the whole house and land package?
Usually not, if the land and build are under separate contracts. In most states, duty is generally calculated on the land contract only. Single-contract turnkey packages may be treated differently. Rules vary by state, so check your state revenue office and confirm with your conveyancer.
What is a sunset clause?
A sunset clause sets a date by which the land title must be registered. If it isn’t, the contract can be ended. Check who can end it, whether your deposit is refunded, and whether the developer can resell the land at a higher price.
Do I need a conveyancer for a house and land package?
Yes. You’re signing two linked contracts with registration dates, sunset clauses, inclusions and progress payments. A conveyancer or property lawyer experienced with new builds should review both before you sign.
Before you sign anything…
Send us the package. We’ll check the price, any commission built into it and the contract terms, and tell you straight whether it stacks up. Free, no obligation.
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Written by the REIN Editorial Team. Researched with the help of AI tools, then fact-checked against the sources below. Last updated 1 October 2026.
Reviewed by Scott Fraser, founder of REIN, licensed real estate agent (NSW) with 10 years on the developer side of house and land.
Sources
- Revenue NSW, accessed 1 October 2026
- State Revenue Office Victoria, accessed 1 October 2026
- Queensland Revenue Office, accessed 1 October 2026
- Moneysmart – Buying a house, accessed 1 October 2026
About this article: This article is published by Real Estate Investors Network Pty Ltd (REIN). Statements of opinion are ours. If you believe anything in this article is inaccurate or out of date, please call us on 1300 446 445 and we will review it and correct it promptly. This is general information only. It does not take into account your objectives, financial situation or needs, and is not financial, credit, legal or tax advice. Rules differ between states and change over time. Consider seeking independent advice from a licensed professional before acting. A REIN service fee applies to our services, and where REIN receives a builder or developer commission in connection with a client’s purchase, it discloses and rebates 100% (excluding GST) of that commission to the client under its written service agreement.