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2018-11-09 Property Tips
Author: Satterley

How to make a house and land package fit your budget

There seems to be a misconception in Australia that newly built homes are only for those who have a massive budget. This isn't true! Buying land and building your own home can be the dream even if you have a lower budget, with thanks to products like house and land packages, or townhouses.

So the question is: How do house and land packages fit into a budget? As experts on developing land for these great deals, the team at Satterley are well-placed to provide advice on the subject. We asked Satterley's Charlie Lawlor, general manager of sales WA, and Rebecca Shackleton Hay, sales and marketing manager VIC and QLD, for their thoughts on affording a house and land package.

Note: Advice in this article is of a general nature. For specific financial advice relating to your individual needs, we recommend you consult with a financial professional.

When investing in real estate for the first time, a house and land package could be a wise choice.

How to afford building your own home

House and land packages make buying and building easier by simplifying a lot of the process.

A house and land package is essentially a combo deal where you purchase land of a size that suits your lifestyle needs, then you speak with a builder about home designs and construction. While there are customisation options available with the builder’s house offerings, a lot of the hard design work is already complete. Some developers, like Satterley, partner with builders to develop exclusive house and land packages where the house is designed for a particular block, making it even easier for new buyers to secure a high-quality home.

Charlie and Rebecca explained to us that this is ultimately what can make a house and land package affordable for those on lower budgets. You aren't paying for an existing house that someone has priced based on what they thought it was 'worth', and you're not buying an ageing property the warranty of which has long passed (and may take additional finance to repair in the near future).

Specific budgeting tips for a house and land package

  1. Sit down with a financial expert: The first thing Charlie recommends is sitting down with your lender and figuring out what your maximum borrowing capacity is and what deposit you'll need to save for. “Just because you can borrow up to a certain amount doesn't mean you should.” said Charlie. “If affordability is your primary concern, work with your lender to get a mortgage that suits your budget, not one that stretches it.”
  2. Access government grants: Generally buyers can't access the government's First Home Owners Grant (FHOG) when buying an established property. Your purchase will have to be a new home purchased ‘off the plan’ or one you've built yourself. Of course, a house and land package fits the bill! This could get you a one-off payment of up to $20,000 that you don't need to repay, but this depends on your eligibility and which state you live in. Visit the FHOG website to learn more.
  3. Lock your land in early: Buying land 'off the plan' (that is, buying land before it has been fully developed) seems more risky to some, but actually it has a lot of benefits. Rebecca said that “buying untitled land locks in the price early, so even if the value rises by the time the title is released to you, you still pay the original contract cost.” So it’s possible your property value may increase without you having to do anything. Of course, if you wait too late to buy, you may miss out.

A house and land package is a great home investment especially if you're on a budget. You'll have a property that is uniquely yours, with a structural guarantee and various maintenance warranties to help you cover the cost of any repairs in the near future - something you'd never get with an older property.


If you're ready to look at lots for sale near you, check out Satterley's WA, VIC and QLD communities online today.

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