If you're looking at a house and land package, you'd be buying a block of land and a new home together, usually on two contracts: one for the land and one with a builder. You pay a deposit on each, settle the land first, then pay the builder in stages as the house goes up.

With two separate contracts, stamp duty is usually charged on the land price, not on the finished home. As a first home buyer, you may get a first home owner grant in every state except the ACT if you're building, and most states cut or waive duty on vacant land for a first home.

If you're renting, you'll usually be paying rent and loan repayments at the same time until you move in. The repayments cover the land and whatever's been drawn for the build.

What you pay, when the grant arrives and how you're protected if the build goes wrong all depend on your state. For the steps that apply to buying any home, see our guide to the 10 steps of buying a house.

What is a house and land package?

A house and land package is a block of land and a new home sold together, often by a developer working with a builder.

The NSW Government's guide to buying a house and land package says you'll usually still sign two separate contracts, one to buy the land and one for the build, and your bank treats the loan as two.

Packages come in two shapes, and the difference decides your stamp duty, your deposits and when you start paying:

• Land contract plus building contract. You buy the land, it settles in your name, and the builder builds on your land under its own contract.
• One contract for a finished home. The seller builds the house and you settle once it's finished, much like buying any new home.

A package sold as "turnkey" is meant to be ready to move into when it's handed over. It can still be on two contracts, so check which shape yours is.

Is the land registered yet?

Some blocks are sold before the estate is finished, as land "off the plan", with no separate title yet. You can't settle the land, or start building, until the subdivision is registered, which the NSW Government says can sometimes take years.

If you're buying land off the plan, ask the developer when they expect it to be registered, and have your conveyancer check the contract's sunset clause (the date after which the contract can be cancelled if the land still isn't registered). A delay to the land can push up the build price and push back your move-in date.

How does buying a house and land package work?

You sign the land contract, sign the building contract, settle the land, then pay the builder in stages until the home is finished.

Line up the construction loan before you commit. The NSW Government warns that most developers won't refund your land deposit if your bank doesn't approve the construction loan. To approve it, a lender needs your building contract with a licensed builder, proof of the builder's insurance, and your plans.

In NSW, duty can fall due before the land settles. You must pay it by settlement or within 3 months of signing the contract, whichever comes first, according to Revenue NSW.

NSW's off-the-plan duty deferral, which lets some buyers pay duty later, doesn't cover vacant land you'll build on after settlement. So before you exchange, ask your conveyancer when duty will be due.

How do progress payments work?

You pay the builder in stages, at the points set out in your building contract. In most states, the law ties each payment to work done or to a finished stage.

In Victoria, the law sets the stages. If your builder is contracted for the whole build, Consumer Affairs Victoria's usual schedule, after a 5 per cent deposit, is:

This is the schedule for Victorian contracts now, but the deposit and stage rules move into new regulations by 1 December 2026, so check the current figures with Consumer Affairs Victoria before you sign.

Queensland, WA, SA and Tasmania don't set a single schedule: each claim must reflect work done. In NSW, payments must follow finished stages or work done.

The NT has a standard schedule, with a maximum for each stage and at least 3 per cent held back until the home is certified for occupancy. You and the builder can agree a different schedule, but it has to be on the prescribed forms.

Who pays the builder, and what it costs you during the build

Your lender usually pays each progress claim from your construction loan, once it has checked the builder's invoice. Housing Australia's guide to building with Help to Buy (the federal shared equity scheme, explained below) says lenders will likely inspect the work at least at the base stage and at the end.

With lenders such as Westpac and the Commonwealth Bank, you pay interest on the amount drawn so far, not on the whole loan, and the Commonwealth Bank also charges a fee for each progress payment.

Don't pay ahead of the work. In Victoria and Queensland, home warranty insurance (cover the builder buys for you) may not cover money you paid before the work was done.

At handover, Housing Australia suggests having an independent building inspector check the finished home. Here's what a building inspection costs.

What does a house and land package cost?

Beyond the land and build prices, you'll pay two contract deposits, stamp duty on the land (unless you're exempt), legal and loan costs, and anything the package leaves out.

The deposits. What you pay the land seller and the builder on signing isn't the same as the deposit your lender wants, which is the share of the total price you put in yourself.

If that's under 20 per cent, you'll usually pay lenders mortgage insurance (LMI, a one-off cost that protects the lender), unless a scheme such as the 5 per cent Deposit Scheme (below) or your lender's own policy lets you avoid it.

An example. On a $380,000 block and a $340,000 build in Queensland, you'd typically pay a land deposit of about $38,000 when you sign the land contract (10 per cent), and up to $17,000 when you sign the building contract (Queensland's usual 5 per cent cap).

This example assumes two contracts and that the builder asks for the most it can. Both deposits count towards the prices, but they aren't all the cash you'll need.

You'll also need to budget for:

• a conveyancer for both contracts (see what a conveyancer costs)
• loan fees, and some lenders' fees for each progress payment
• site costs: the NSW Government says a quote should reflect your block's soil and slope, and Consumer Affairs Victoria warns that allowances for excavation can rise if the builder finds rock
• items the package may not include, such as driveways, landscaping, fencing, electrical fittings and bathroom fixtures
• a buffer: Housing Australia suggests Help to Buy buyers keep an extra 5 per cent of the construction cost in savings

Is stamp duty only charged on the land?

Usually, yes, if the land is on its own contract and the build is on a separate one with a builder. But not always: if the seller is building the house before you settle, or the contracts are tied together so the land settles only once the house is finished, duty can be charged on the house and land.

In NSW, Revenue NSW's ruling DUT 018 says you'll pay duty on the land and house if you're to receive a completed house, whether on one contract or on "two interdependent contracts with settlement linked to completion of the building".

In the ACT, the ACT Revenue Office charges duty on the house and land if the seller builds the house before you settle under your contract, and on the land only if you sign a separate building contract.

In other states, ask your conveyancer how duty will be worked out on your contracts before you sign. Some states also have concessions for buying on one contract:

• Victoria: if you qualify for the first home buyer or principal place of residence (a home you'll live in) concession, the off-the-plan concession means you don't pay duty on construction done after you sign.
• WA: an off-the-plan concession now covers a house and land bought on a single agreement on some lots: survey-strata or community titles lots, kinds of land title used in some estates. A land contract separate from the building contract doesn't qualify.
• NT: any buyer of a new house and land package from a builder, in a single transaction, can be exempt from duty for contracts signed by 30 June 2027. The builder must have bought the land and paid duty on it, and you must live in the home for 6 months, starting within 12 months of completion.

If you're a first home buyer in Queensland or SA, you pay no duty on a new home or on vacant land, at any price (in Queensland, if you build and move in within 2 years), so how your contracts are set up matters less. Our guide to stamp duty explains how duty is worked out.

Which first home grants and schemes can you use?

If you're an eligible first home buyer building a new home, you can get the first home owner grant in every state except the ACT. If you apply through your lender, the grant is usually paid at the first progress payment, after the land has settled and the build has started.

What differs by state (checked 21 October 2026):

Queensland's revenue office says it's best not to count on the grant for your deposit. And since 1 August 2026, each buyer claiming a duty concession in Queensland must be a citizen or permanent resident (or a specified foreign retiree).

Every grant comes with conditions, such as moving in within a set time. Check yours with your state's revenue office: NSW, Victoria, Queensland, WA, SA, Tasmania, the ACT and the NT.

The federal schemes work for a build too. The 5 per cent Deposit Scheme lets you buy with a 5 per cent deposit and no LMI. Help to Buy can contribute up to 40 per cent of a new home's price in return for a share of its value. For both, the price cap counts the land and build together.

You can't use the two schemes together. Both set the same deadlines for the build: start within 12 months of settling on the land, and finish within 36 months.

The 5 per cent Deposit Scheme also sets when the building contract must be signed: with separate contracts, within 6 months of settling on the land. Our 10 steps guide sets out who's eligible for each scheme.

What protects you if the build goes wrong?

If you're worried about your builder going broke halfway through, three rules protect you in most states: a cap on the building deposit, a cooling-off period on the building contract, and home warranty insurance.

In most states, home warranty insurance is last resort: you can generally claim only if the builder dies, disappears or becomes insolvent, or in a few state-specific cases such as a cancelled licence. Finding defects on its own isn't enough, says icare NSW, which runs the NSW scheme.

In Queensland and Tasmania, the deposit cap rises to 20 per cent where more than half the contract's value is work done off site, as with some prefabricated homes.

In Victoria, cover is first resort for contracts signed from 1 July 2026: you can claim if your builder can't or won't finish or fix the work. Earlier contracts keep the old last-resort cover.

Tasmania has no compulsory home warranty insurance, but the builder's warranties under the law (statutory warranties) last 6 years from practical completion, when the work is finished apart from minor defects.

The builder can't take any money from you in NSW and WA until they've given you the insurance certificate, and Consumer Affairs Victoria says not to pay a deposit until you have it.

If a lawyer advises you on the building contract before you sign, you give up its cooling-off period in Victoria, Queensland and Tasmania, so raise any concerns with them before you sign.

The land contract has its own cooling-off rules, set out by state in our 10 steps guide. In NSW, if you buy land off the plan, the cooling-off period is 10 business days.

What to check before you sign

Run through this list with your conveyancer before you sign either contract:

• The land: is it registered with its own title? If it's off the plan, when is registration expected, and what does the sunset clause say?
• The contracts: do they depend on each other, and can you cancel the building contract if the land sale falls through? Tying them together can also change how duty is worked out (above), so ask about both.
• Who you're dealing with: is the company marketing the package the same one signing the building contract? Any dispute will be with the company you contracted with.
• The price: is it fixed? Look for clauses that raise the price automatically, for example if council approval is delayed. These rise-and-fall clauses are banned in WA home building contracts, with limited exceptions, and SA allows them only in contracts that set a completion date.
• Provisional sums and prime cost items: these are allowances for work or fittings not yet priced, and they can rise. A variation is a change to the work after you sign, and Consumer Affairs Victoria says you shouldn't pay for one the builder should have foreseen from the site's foundation data.
• The builder: is the deposit within your state's limit, and have you had the insurance certificate? The Queensland regulator recommends a fixed-price contract over a cost-plus one (where you pay the builder's costs plus a margin).
• The area: how far is the estate from transport, schools and shops, and what's planned? Our suburb profiles can help you compare areas.

The NSW Government also warns against signing a land contract for an unregistered block and paying a builder's tender fee (a fee for a detailed quote) at the same time. A tender usually isn't binding, but a contract is.

If you're buying to rent out

While the house is being built, you'll pay interest on the land loan and on whatever's been drawn for the build, with no rent coming in yet.

Once the home is rented or available to rent, the ATO lets you claim eligible construction costs (not the land) over time as capital works deductions. You can also claim depreciation on brand-new fittings, which you generally can't claim on second-hand fittings that came with an established home.

Is a house and land package a good idea for a first home buyer?

It can be, if you want a new home, can wait for it to be built, and would get your state's grant or duty relief on the land. It's a weaker fit if you need to move soon or have no room in your budget for delays or price rises.

A package could suit you if:

• you'd get your state's first home owner grant, which is only paid on new homes
• your duty would be charged on the land alone, or waived for a first home
• you can afford rent and loan repayments at the same time until you move in

An established home could suit you better if:

• you need to move within months, not after a build
• you want an established area, with transport and shops already there
• your budget has no room for site costs, upgrades or items the package leaves out

FAQ

Where these rules come from

We checked these rules on 21 October 2026 against the state revenue offices (including Revenue NSW's ruling DUT 018), the NSW Government's guide to buying a house and land package, Housing Australia's guide to building with Help to Buy, and each state's building regulator or Act.

Where a state's guidance doesn't settle a point, such as duty on the land outside NSW and the ACT, or a building-contract cooling-off period in WA, the ACT and the NT, we've pointed you to your conveyancer or your contract. Lender practices are named examples, not rules.