Calculating Your Finances for a House and Land Package

Information in this article is general in nature and does not constitute financial, legal, or taxation advice. Government grant amounts, stamp duty thresholds, and scheme eligibility are subject to change. Always verify current information through the relevant state or federal government sources, and seek advice from a licensed mortgage broker, conveyancer, or financial adviser before making decisions.

Calculating Your Finances for a House and Land Package

For many Australians, a house and land package is the clearest path to owning a brand-new home in a community designed with liveability in mind. But if you’re new to the process, financing one can feel a little different to simply buying an established house, and understanding those differences will help you plan with confidence.

This guide breaks down the real costs of a house and land package, explains how the finance works, and highlights the government incentives that could put more money back in your pocket.

House and Land vs. Established Property: The Key Differences

When you purchase an established home, you’re buying it as-is. Wear and tear, dated fixtures, and deferred maintenance all come with the territory, and the costs to address them can add up quickly after settlement.

A house and land package is different. You’re building a new home, which means you choose the design, customise the inclusions, and move into a property that’s never been lived in. Most builders also offer a structural warranty, giving you peace of mind that any construction defects are covered.

A few things worth comparing:

1. Ongoing maintenance costs: Established homes often come with hidden costs: repairs, repainting, pest control, aging appliances or systems. A new build typically requires minimal maintenance in its early years, and a builder’s warranty provides an additional safety net.
2. Design and quality: Building new means choosing a home designed for modern living, open-plan layouts, energy-efficient fittings, and contemporary finishes. It also means you know exactly what you’re getting before you sign a contract.
3. Builder and developer incentives: Many builders and developers offer incentives for new buyers, which can include discounted pricing, additional inclusions (upgraded fixtures, flooring, appliances), or other package benefits. Always ask what’s included before comparing prices.
4. Stamp duty advantage: This is one of the most significant financial benefits of a house and land package that often goes unnoticed. When you purchase via separate land and construction contracts (as most house and land packages are structured), stamp duty is typically calculated on the land value only, not the total value of the land plus the completed home. This can represent a saving of many thousands of dollars compared to buying an equivalent established property at full value. We explain this further in the government concessions section below.

How Financing a House and Land Package Works

Your Loan Options

When building a new home, there are generally two ways to structure your finance:

Option 1: A construction loan (progressive drawdown). A construction loan releases funds in stages as your home is built, rather than as a lump sum. Most lenders structure these around five standard progress payment milestones:

• Base/slab — foundation is laid
• Frame — structural frame is complete
• Lock-up — walls, roof, windows and doors are in place
• Fixing/fit-out — internal fittings, cabinetry, plumbing and electrical
• Completion — home is finished and ready for handover

Because you only draw down, and pay interest on, the portion of the loan used at each stage, your repayments start lower and increase gradually as the build progresses. This can ease the financial pressure during construction, particularly if you’re still paying rent.

Option 2: A single bundled loan. Many house and land packages allow you to consolidate the land purchase and construction costs into one loan, simplifying the process. This is often the preferred option for first home buyers who want a more straightforward path to settlement. You’ll sacrifice some of the interest savings of a staged drawdown, but you’ll gain simplicity and predictability.

Speaking with a mortgage broker early will help you understand which structure suits your circumstances best.

Your Deposit

For a house and land package, most lenders require a deposit of between 5% and 10% of the total package value. The land component typically requires a deposit at contract signing, with the construction portion funded progressively as the build advances.

If saving a 20% deposit feels out of reach, you’re not alone, and there’s meaningful government support available. The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with as little as a 5% deposit and no Lenders Mortgage Insurance (LMI). As of October 2025, there are no income limits and no caps on the number of available places. House and land packages are an eligible purchase type under the scheme.

You can read more in our dedicated guide: Australian Government 5% Deposit Scheme.

A Note on Lenders Mortgage Insurance (LMI)

When your deposit is less than 20% of the property’s value, most lenders require you to pay LMI, an insurance policy that protects the lender (not you) if you default on the loan. LMI can cost anywhere from 1% to 5% of your loan amount, which can add up to thousands of dollars on a typical build. The government 5% Deposit Scheme, and products like Keystart in WA, can help you avoid this cost entirely.

Managing the Construction Period

One practical consideration often overlooked by first home buyers is the period between signing contracts and moving in. Construction takes time, typically six to twelve months for a standard new build, and if you’re renting during that period, you’ll be managing two sets of housing costs simultaneously.

A few ways to manage this:

• Interest-only repayments during construction: Most lenders allow interest-only payments during the build period (usually up to twelve months). This keeps your repayments lower while your home is being built, and switches to principal-and-interest once construction is complete.
• Budget for the overlap: Factor potential rental costs into your overall budget before signing. Your mortgage broker can model different scenarios to help you plan for this period.

As always, we recommend speaking with a licensed financial adviser or mortgage broker before making these decisions, what works best depends entirely on your individual circumstances.

Siteworks, Tests, and Inclusions

A house and land package price typically covers your home design and standard inclusions, but there are additional site-related costs to be aware of:

• Soil tests and contour surveys: Required before construction begins to determine the best foundation type and assess any site-specific requirements.
• Siteworks: Work done to prepare the land for building, such as levelling, drainage, or retaining. On a standard flat suburban block, siteworks typically cost between $10,000 and $25,000. Sloping or more complex sites can attract higher costs ($25,000–$50,000+).
• Inclusions: What’s included in your house design: driveways, landscaping, floor coverings, window treatments, kitchen fittings. A comprehensive inclusions package can significantly reduce the number of extras you need to budget for after signing.

Always review the inclusions list carefully before committing to a build contract, and ask your builder to clarify exactly what is, and isn’t, covered. For a detailed breakdown of what to look out for, see our guide to the hidden costs of building a house.

Government Concessions for New Home Buyers

Building new opens the door to a range of government incentives that aren’t available to buyers of established properties. Here’s what’s currently on offer in the states where Satterley operates.

The Stamp Duty Advantage of Building New

As noted above, when a house and land package is structured as separate land and construction contracts, stamp duty is generally calculated on the land purchase price only, not the total combined value of land plus house. This is a meaningful financial advantage over buying an established home, where duty applies to the full purchase price. The specific saving will depend on your state, land value, and eligibility, your conveyancer or mortgage broker can calculate your exact position.

Western Australia

First Home Owner Grant: A one-off $10,000 payment for eligible first home buyers building or purchasing a new home. Property value caps apply: up to $750,000 for properties Perth or southern WA (including all of metropolitan Perth), and up to $1,000,000 north northern WA.

Stamp Duty Concessions (updated March 2025): Significant changes to WA stamp duty thresholds took effect from 21 March 2025:

• No stamp duty on homes valued up to $500,000 (increased from $450,000)
• Concessional duty on homes between $500,001 and $700,000 in the Perth/Peel regions, or up to $750,000 in regional WA
• Vacant land: No stamp duty on land valued up to $350,000 (increased from $300,000)

For a house and land package where stamp duty is calculated on the land value only, many buyers in Satterley’s WA communities will fall well within the exemption threshold, potentially paying no stamp duty at all.

Victoria

First Home Owner Grant: A $10,000 one-off payment for eligible first home buyers purchasing or building a new home valued at $750,000 or less.

Stamp Duty Exemption and Concession: Victoria offers substantial stamp duty relief for first home buyers:

• Full exemption on properties (new or established) valued at $600,000 or less
• Sliding concession on properties valued between $600,001 and $750,000

Both the FHOG and stamp duty concession can be used together, and can be stacked with the federal 5% Deposit Scheme for maximum benefit.

Queensland

First Home Owner Grant: Currently $30,000 for eligible first home buyers purchasing or building a new home valued under $750,000, for contracts signed between 20 November 2023 and 30 June 2026. After that date, the grant reverts to $15,000 unless extended by the Queensland Government. If you’re planning to build in Queensland, this deadline is worth keeping in mind.

Stamp Duty — Full Exemption from 1 May 2025: Queensland introduced a landmark change from 1 May 2025: eligible first home buyers pay no stamp duty on new homes or vacant land, with no property price cap. This applies to house and land packages where the land purchase contract is signed on or after 1 May 2025. For QLD buyers, this can represent a saving of tens of thousands of dollars.

All States: Australian Government 5% Deposit Scheme

As of 1 October 2025, all eligible first home buyers can use the Australian Government 5% Deposit Scheme to purchase with just a 5% deposit and no LMI, with no income limits and unlimited places available. House and land packages are an eligible purchase type. Property price caps apply by location.

Quick Reference: Key Costs to Budget For

Is a House and Land Package Right for You?

A house and land package suits a wide range of buyers, but we find they resonate most strongly with first home buyers and growing families who want the comfort of a brand-new home, in a community designed for real life.

At Satterley, every estate is masterplanned from the ground up, with parks, walking trails, schools, shops, and community spaces woven into the design from day one. That means the things that matter most to daily life are close at hand, saving time, reducing costs, and making it easier to feel connected from the moment you move in.

With over 45 years of experience and more than 315,000 residents across our communities in Western Australia, Victoria, and Queensland, we know what makes a great neighbourhood, and we build them to last.

If a house and land package sounds like the right fit for your lifestyle and budget, we’d love to help you find your place.

Explore our available land and communities across WA, VIC, and QLD, or get in touch with our team to start the conversation.