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: How Do House and Land Packages Work?
A house and land package is usually two contracts sold together: one to buy a block of land from the developer, and one with a builder to build a home on it. You pay a deposit on each. The land settles first, then the builder starts and you pay the build in stages as it goes up. In many cases stamp duty is charged on the land only, not the house.
What most guides leave out is who gets paid. When a package is sold to investors by a marketer or adviser, a commission is often paid by the builder or developer and built into the price you pay. Already been shown one? Get it checked before you sign.
What Is a House and Land Package?
It’s a new home on a new block, bought as a bundle. The land is usually in a new estate, and the home is chosen from a builder’s range of designs. The South Australian Government’s HomeSeeker guide describes it as “a 2-part contract”: the first to buy land from the land developer, the second to buy the house from the builder.
Some packages are sold differently. A turnkey package is delivered finished, with flooring, window coverings, driveway and landscaping included. A completed home sold on one contract works more like buying an established house.
How Do the Two Contracts Work?
The land contract
You sign a contract with the developer or landowner and pay a deposit, often held in trust. If the estate isn’t titled yet, settlement waits until the lot registers. Check the sunset date and what happens to your deposit if registration runs late.
The build contract
You sign a separate building contract with the builder. Deposits are capped by state law. In Queensland the maximum deposit is 5% for building work over $20,000, according to the QBCC. Victoria’s cap is also 5% for contracts of $20,000 or more, per Consumer Affairs Victoria. Our house and land deposit guide covers the other states.
The build contract also sets the base price, inclusions, site costs and how variations are priced. HomeSeeker warns the final price “might be higher due to contract variations” and suggests keeping an extra 5–10% of your budget in reserve.
How Do Progress Payments Work?
You don’t pay the builder in one lump sum. You pay at set construction stages, and a construction loan is usually drawn down to meet each payment. Victoria sets the stages for a full build in law:
| Stage (Victoria, full build) | Maximum payment |
|---|---|
| Base | 10% |
| Frame | 15% |
| Lock-up | 35% |
| Fixing | 25% |
Source: Consumer Affairs Victoria. The deposit and the final payment at completion make up the balance.
Queensland doesn’t fix percentages, but the QBCC says a builder “can’t claim more than 50% of the contract price, including the deposit, until at least 50% of the work onsite has been completed.” It also warns that paying more than the contract says, or paying early, can affect your cover under the Queensland Home Warranty Scheme.
Our guide to construction loans for house and land explains how the drawdowns and the bank valuation work.
Do You Pay Stamp Duty on the Whole Package?
Often not. With a two-contract package, HomeSeeker says “you may only have to pay stamp duty on the price of the land, not the value of the house.” But it depends on how the sale is structured. Revenue NSW ruling DUT018 says that where the vendor is responsible for getting the home built before transfer, duty is charged on the land and the improvements. Where you only buy the land and build separately, duty is on the land.
Each state has its own rules, so ask your conveyancer before you sign. See house and land package costs for the full list of buying costs.
What Are the Steps to Buy a House and Land Package?
- Get finance pre-approval. Know your borrowing limit for the land and the build before you commit.
- Check the price. Compare the land and the build against recent sales and similar builds nearby, and ask who is being paid to sell it to you.
- Have both contracts reviewed. A conveyancer or solicitor should read the land contract and the building contract, including inclusions, site costs and the sunset clause.
- Sign the land contract and pay the land deposit.
- Sign the build contract and pay the build deposit. Confirm the builder’s licence and home warranty insurance first.
- Land settles. This happens once the lot is titled. Your loan funds the land.
- Approvals. The builder lodges plans for approval. HomeSeeker says council approvals can take from two weeks to 12 months.
- Construction and progress payments. Inspect at key stages so problems are found early. A building inspection at each stage is worth the cost.
- Practical completion and handover. Do a practical completion inspection before the final payment, then list defects for the builder to fix.
- Lease it. Rent starts once the home is finished and tenanted, not when you sign.
Who Gets Paid When You Buy a House and Land Package?
This is the part that changes the price. The developer earns a margin on the land and the builder on the home. When a package is sold through a marketer, a property club or an adviser, a commission is often paid by the builder or developer on top of that. In our experience on the developer side, that commission is usually built into the price rather than shown to you.
The government’s Moneysmart site warns that property offers promoted at investment seminars “often include hidden fees and commissions” and that “you may also be asked to pay too much for the property.” Builder commissions can run into tens of thousands of dollars. That matters twice: you pay it, and the bank valuation may not cover it.
Before you sign, ask in writing: who is paid if I buy this, how much, and by whom? Our page on hidden builder commissions explains what to look for.
What Are the Pros and Cons for Investors?
| Pros | Cons |
|---|---|
| Stamp duty is often on the land only | No rent until the home is built and leased |
| A new home, with home warranty insurance where the law requires it | Build delays and variations can add cost |
| You choose the design and inclusions | Commissions can be built into the price |
| Land and build deposits are capped by state law | New estates can have a lot of similar stock |
| Progress payments spread the build cost | The bank valuation may come in under the price |
Whether a particular package is a good buy depends on the price, the location and the builder. We cover that in are house and land packages a good investment? and what investors should know about wholesale builders.
What Happens If the Builder Goes Bust?
For insurable residential work in Queensland, the principal contractor must take out home warranty insurance. The QBCC says the Queensland Home Warranty Scheme covers you if the builder can’t or won’t finish the work, or fails to fix defects. Other states have their own schemes. Read what happens if your builder goes bust, and check the builder’s licence before you sign. Our builder reviews list what to check on the builders investors are shown most often.
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 About House and Land Packages
How do house and land packages work in Australia?
You usually sign two contracts: one for the land with the developer and one for the home with a builder. You pay a deposit on each, the land settles first, and the build is paid in stages until handover.
Do you pay stamp duty on the whole house and land package?
Often only on the land, when the land and the build are separate contracts. If the seller is responsible for delivering a finished home, duty can apply to the land and the house. Check your state’s rules with your conveyancer.
How much deposit do you need for a house and land package?
Usually a land deposit set by the land contract, plus a build deposit capped by state law (5% in Queensland and Victoria for contracts over $20,000), plus your lender’s loan deposit. See our deposit guide.
Can you negotiate a house and land package?
Often, yes, on price, inclusions or site costs. Where a commission is built into the price, there may be more room than the list price suggests. Get the price checked against recent sales before you sign.
What is the difference between a turnkey and a standard package?
A turnkey package is handed over finished and ready to rent, with items like flooring, blinds, driveway and landscaping included. A standard package may leave some of those for you to arrange and pay for after handover.
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 pay a deposit.
GET MY PACKAGE CHECKED or call 1300 446 445.
Sources
- HomeSeeker SA (Government of South Australia) – Buying a house and land package (accessed 5 October 2026)
- QBCC – Deposits and progress payments (accessed 5 October 2026)
- QBCC – Queensland Home Warranty Scheme (accessed 5 October 2026)
- Consumer Affairs Victoria – Deposits and payments (accessed 5 October 2026)
- Revenue NSW – Ruling DUT018: Dutiable transactions over land and improvements (accessed 5 October 2026)
- Moneysmart – Investment seminars (accessed 5 October 2026)
Disclaimer: This guide is general information only and does not take your personal circumstances into account. It is not financial, credit, legal or tax advice. Building, duty and lending rules differ between states and change over time, so confirm with your conveyancer, lender or adviser before you act.