House and land packages: what the term covers

What a house and land package is

The term house and land package reads as though it explains itself, Realestate.com.au notes, though what a given package does and does not take in is not always easy to see. Stockland's chief executive for development tells that guide the packages are popular because the combined cost of the home and the land is known from the outset.

Realestate.com.au explains that a buyer purchases a lot through a developer, then selects a builder and a home design. The guide says in Stockland's communities the land is bought from Stockland and the home from a builder, and gives that split as the reason two separate agreements exist.

Choosing a builder and a home design

Realestate.com.au sets out the steps it ties to a package. A buyer finds a developer offering a package that suits them, then visits display homes to settle on a design and a builder. Where an estate cannot be seen in person, many developers and builders provide virtual tours in three dimensions, so a home can be viewed without a trip to a display site.

Once a design is settled, the guide lists the questions it would put to a builder. They include what is included and what is not, since fittings shown in a display home may not come with the standard package; the layout, since most buyers want changes, which can prove problematic for a builder; when construction starts and how long it takes; and which sustainability features form part of the design, as spending on power, water and gas is likely to rise.

Realestate.com.au explains that a buyer purchases a lot through a developer, then selects a builder and a home design.

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What is usually included and what costs extra

The guide notes that builders and homes differ, so buyers establish exactly what is and is not part of the deal. Stockland's chief executive for development tells the guide that 'standard inclusions' in a new home usually take in a fitted kitchen and bathroom, built-in robes, windows and doors, electrical points, fans, stairs and tiles, along with television and phone points.

The guide says many interior design elements are charged as extras, and that driveways, fencing and landscaping can add to the cost. Builders may also provide further inclusions depending on the cost and style of a home, such as stone kitchen benchtops, stainless steel appliances, or carpets and tiling through the home, and sometimes driveways, landscaping and fencing too.

Costs that sit outside the package

The guide says a package does not cover everything, and that stamp duty and registration fees sit outside it. It also notes that a legal representative is appointed to deal with the developer and the builder and to meet council and regulatory requirements, and that the owner arranges connections for power, water, gas and internet. Once the land is owned, the guide says the owner keeps it clear of rubbish, debris and weeds, and a council may inspect lots under construction and issue fines if they are not kept tidy.

Realestate.com.au suggests a solicitor check the contract for workmanship warranties, builder's insurance, plans and specifications, and any cost differences, which it calls variances. Its own checklist of questions for a builder asks whether the builder is licensed, whether there is builder's insurance, whether the lot has been checked for suitability, and whether recent projects have been visited.

Questions

What is a house and land package?: Realestate.com.au describes it as one process in which a buyer arranges to buy a block of land and to have a home built on it. According to Realestate.com.au, two contracts are involved because the land and the home come from different sellers.
How does house and land work?: According to Realestate.com.au, a developer sells the land and a builder builds the home, so two agreements are signed. The guide sets out a sequence: find a developer, choose a builder and a design, then check the contract and the costs that are not part of the package.
What is included in a house and land package?: Realestate.com.au says 'standard inclusions' in a new home usually take in a fitted kitchen and bathroom, built-in robes, windows and doors, electrical points, fans, stairs and tiles, along with television and phone points. The guide says many interior design elements are charged as extras, and the same applies to driveways, fencing and landscaping.
What costs are not included in a house and land package?: The guide says stamp duty and registration fees sit outside the package, along with legal representation and the connections for power, water, gas and internet. The guide says the owner also maintains the land once it is theirs, and a council may inspect lots under construction.