What is a house & land package?

The term ‘house and land package’ seems self-explanatory, but understanding what is and isn’t included can be tricky.

Know what is and is not included in a house and land package before you buy. Picture: Getty

What is a house and land package?

Andrew Whitson, chief executive of residential for Stockland, one of Australia’s leading residential developers, gives the lowdown on what buyers should expect to get in an average house and land package.

“House and land packages in Stockland communities around Australia typically include a home site and a brand-new home,” he says.

That means there’s generally two contracts, not one, as some buyers assume.

“A buyer will have contracts for both land and construction, because they are purchasing from two separate entities. In Stockland communities, the land is purchased from Stockland and the home is purchased from a builder,” Whitson explains.

A buyer will have contracts for both land and construction. Picture: Getty Images

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What’s usually included in a house and land package?

He says ‘standard inclusions’ in a new home usually include a fully-fitted kitchen and bathroom, windows and doors, built-in robes, electrical points, TV and phone points, fans, stairs and tiles. Many interior design elements are extra.

“Builders may also offer additional inclusions, depending on the price and style of the home. For example, it may include carpets and tiling throughout, stone kitchen bench tops or stainless steel appliances,” Whitson says.

All builders differ, so buyers should find out exactly what is and isn’t part of the deal, he adds.

Things like driveways, landscaping and fencing are generally considered ‘extras’ and come at an additional cost.

“Builders may provide driveways, landscaping and fencing as part of their additional inclusions. This will depend on the house and land package you are buying.”

All builders differ, so buyers should find out exactly what is and isn’t part of the deal. Picture: Getty Images

In Western Australia for example, Stockland includes fencing and front landscaping as standard. Clothes lines and letterboxes aren’t always offered as standard, Whitson says.

Costs such as stamp duty and registration fees are not included in a house and land package price.

As with all property purchases, buyers need to appoint a legal representative to liaise with the developer and the builder, to ensure council and regulatory requirements are met, Whitson says.

“Once a customer owns their land, they are responsible for maintaining it, which includes keeping it clear from rubbish, debris, excessive or overgrown weeds and other materials. Council may conduct regular site inspections of lots under construction and may issue fines to the owner if lots are not kept clean and tidy.”

Then there’s connections, like power, water, gas and internet.

“Key utility infrastructure is included on all lots in Stockland communities. However, homeowners are responsible for contacting utility providers, such as electricity and telephone providers, to set up their home account and arrange connection,” Whitson says.

Whitson recommends buyers do their homework, but says house and land packages remain popular because house hunters, first-home buyers especially, “usually have a total budget in mind and prefer to know the combined price of their home and land from the outset.”

Written by Erin Delahunty http://www.realestate.com.au/advice/what-is-a-house-and-land-package/