This method provides buyers with fixed-price certainty, ensures the chosen floor plan perfectly fits the lot dimensions, and drastically reduces the administrative burden of sourcing land and a builder separately.
Purchasers sign two distinct contracts—one with the land developer and one with the builder—allowing them to save thousands of dollars on stamp duty, as the tax is only applied to the vacant land value, not the yet-to-be-built house.
Types of House and Land Packages
When exploring the Shepparton property market, prospective buyers will encounter two primary types of packages, each suited to different financial circumstances and lifestyle preferences:
Turnkey Packages
A turnkey package provides a comprehensive, fully finished property.
The quoted price includes the house, site costs, driveways, fencing, landscaping, letterboxes, and even internal features like window blinds and a television antenna.
The term implies that upon final settlement, you simply "turn the key" and move in. This option is incredibly popular with local investors, as the property can be immediately leased to tenants without requiring further capital outlay or post-handover trades work.
Standard Packages
A standard package includes the vacant land and the primary construction of the house, but generally leaves exterior finishing (like landscaping, retaining walls, and fencing) and premium internal upgrades up to the buyer to complete post-handover.
This allows owner-occupiers to save money upfront and complete the finishing touches over time according to their specific tastes and cash flow.
The Financial and Contractual Structure
The most significant advantage of a house and land package is the financial structure, specifically regarding taxation and loan management.
The Two-Contract System and Stamp Duty
Unlike buying an established home where stamp duty is calculated on the total purchase price, a house and land package separates the transaction.
You sign a contract with the developer for the land, and a separate contract with the builder for the construction.
In Victoria, you only pay stamp duty on the land contract.
For a $500,000 package ($200k land / $300k build), paying stamp duty only on the $200,000 land component yields immense savings.
The Progress Payment Schedule
To fund the build, your mortgage broker will arrange a construction loan. This loan allows the bank to release funds in specific stages, known as progress payments, ensuring you only pay interest on the money used to date. Standard stages include:
- Deposit: (Usually 5%) Paid upon signing the building contract.
- Base Stage: (Usually 15%) Paid when the concrete slab is poured.
- Frame Stage: (Usually 20%) Paid when the wall and roof frames are erected.
- Lock-up Stage: (Usually 20%) Paid when the brickwork, roof, doors, and windows are installed.
- Fixing Stage: (Usually 30%) Paid when plastering, cabinetry, and internal doors are completed.
- Completion: (Usually 10%) Paid at final handover.
Authoritative Housing & Finance Resources
- State Revenue Office Victoria (SRO): sro.vic.gov.au
- Victorian Building Authority (VBA): vba.vic.gov.au
- Master Builders Association of Victoria (MBAV): mbav.com.au
Frequently Asked Questions
What is a house and land package?
A house and land package is a real estate transaction where a buyer secures a block of land and a pre-approved home design from a builder in one coordinated process, typically within a new residential estate.
How does a construction loan work for a house and land package?
A construction loan does not provide all the money upfront. Instead, the lender releases funds to the builder in scheduled "progress payments" as specific stages of the house (e.g., slab, frame, lock-up) are completed.
Do I save on stamp duty with a house and land package?
Yes. In Victoria, if you sign the contracts before construction begins, stamp duty is only calculated on the value of the vacant land, not the total combined cost of the land plus the completed house.
Are site costs included in a house and land package?
In many "fixed-price" packages, standard site costs are included. However, always check the contract fine print, as extreme soil issues, flood overlays, or rock removal can sometimes incur additional variation charges.
Can I customise the design of a house and land package?
Most builders allow structural variations (like moving an internal wall) and cosmetic upgrades (like choosing premium tiles) before the contract is signed, though these changes will alter the advertised base price.
What does 'turnkey' mean?
A turnkey package means the home is 100% complete and ready to live in from day one.
It includes all the finishing touches that standard packages omit, such as landscaping, fencing, driveways, and window blinds.
How long does it take to complete a house and land package?
Once the land is officially titled (which can take months if buying off the plan), the actual construction phase typically takes between 6 to 9 months for a standard single-storey brick veneer home.
Do I need a conveyancer for a house and land package?
Yes. Because you are purchasing real estate (the land), you must engage a licensed conveyancer or property solicitor to handle the title transfer and legal settlement process with the land developer.
