The Ultimate Guide To Buying A House And Lot Package

Getting a new home is a dream come true for everyone. You have a sanctuary even if you’re paying a mortgage instead of renting it, especially if you choose a house-and-lot package. However, selecting the right package is the most critical step in the process. Keep reading this guide before buying a house-and-lot package.

Guide To Buying A House And Lot Package

What Is A House-And-Land Package?

With new home and land packages in certain countries and regions, you have two separate contracts. However, purchasing a plot of land and a house is one process since most developers bundle this into one. This setup is possible since property developers sell portions of the large areas of land they’ve bought. They sell these properties through two types of house-and-lot packages:

  • Turnkey Package: If you’re not aiming to design the interiors of your home personally, this package is your first choice. As its name sounds, you only need to turn the key in the door to enter the property. The house is already built where you can live immediately. 
  • Standard Package: On the other hand, you can choose this package if you want to work with your contractors on what you want your home to look like. In this package, you only have the land where your contractors can build your dream home. 

A turnkey package is ideal for young families. On the other hand, couples just starting out might choose the standard package. Whichever package you choose, remember that you’re investing in your future home.

How Long Does It Take To Buy And Build The Package? 

Generally, purchasing a package doesn’t take long. However, this still depends on the real estate, developers, and other considerations. Some allow you to have a ready buy-and-build land, meaning you can settle immediately after purchasing the land. Afterward, you can go straight to construction once you receive the required permits.

Local councils and other governing bodies typically take one to two months to approve building permits. However, some can take at least six months up to two years when all relevant infrastructure in the property hasn’t been developed. This means you might wait to build your house after paying your deposit on the land.

Moreover, during this period, the developer can only register the land titles after essential infrastructures are in place. The land title registration is vital since you can only proceed to construction after receiving the council’s approval, paying the remaining land cost, and settling on the land.

When you start building your house, you might wait four to seven months to complete the construction of a one-story home. During this period, your contractors complete the following key stages: 

  • Practical completion
  • Internal fittings and fixtures
  • Enclosed (doors and windows)
  • Frame
  • Slab

All in all, the entire process of acquiring the land and building the home takes three years at most to complete.

How To Finance For A House And Land Package

There are different ways you can finance a house and land package after buying it, but it still depends on the type of package you choose. 

For a turnkey package, expect a fixed price for the total cost of the land and constructing the house. You can expect to pay a 20% deposit from most real estate developers. Financing for this package is similar to a standard home loan. Moreover, the developers require this deposit to avoid paying for the lender’s mortgage insurance (LMI). In other instances, you can pay a deposit as small as 5%, and in exchange, lenders will charge you for LMI. 

Meanwhile, there are two separate components and different financing for standard house-and-lot packages. First, you need a land loan to finance your vacant block of land. As for the deposit, it’s similar to financing turnkey packages. You need at least a 20% deposit to avoid paying LMI. However, the deposit can still change depending on the lender and the land’s size. 

The other component of financing a house-and-lot package is to get a loan for the house, separate from a construction loan. The construction loan differs from a standard home loan since it’s specifically for building your house, which is a special type of loan.

Moreover, the financing calculates your repayments based on how far along the construction is. And for the duration of the build, lenders will charge interest-only repayments. You might have two loans for the land and house, but you can bundle the financing with only one lender.

What Other Factors To Consider? 

Now that you know the types of house-and-lot packages and how to finance them, you might be thinking of buying. Before you do, here are other critical factors to consider so you know your purchase is worth it:

  • Price: Choosing the best deal for what you can afford is essential. You should ask how much you’ll pay for the different house-and-land package offers to compare them and choose the best price before making a final decision.
  • Inclusions: Almost everyone will choose the cheapest package. However, comparing each package’s inclusions is still ideal. Make sure the package you consider has everything you need to start living and moving in. Ask developers what inclusions they have for their house-and-lot packages.
  • Design: Needless to say, you must choose a facade and floor plan you love when you’re building the house. Doing this can help you save from expensive and difficult changes after. But you can avoid this situation if you know what to do on a home renovation project.
  • Location: Location is critical since you must choose a property with amenities that cater to your needs. For instance, you might want a location near public transportation for work. You also need to consider the location’s accessibility to shops, schools, hospitals, and other services you’ll need.

Financing is a crucial factor when acquiring a new home. Moreover, consider these other key factors before you sign on the dotted line.

How To Choose A Developer

Conducting in-depth research about different developers before securing your dream home is also essential. After deciding between a standard or a turnkey package, you need to check a developer’s display homes to check what features they’ve added to their homes. 

During your visit, ask the developers if you can customize the home to your specifications. Inquire if they include the display home’s elements in the actual package. That way, you can avoid having an additional cost for fixtures that might not be in the package. 

If you’re getting a standard package, checking the experience and qualifications of the contractors you choose to build your home ensures you get one that’s up to standard. It also helps to check their insurance providers and licenses. You can also check reviews and testimonials from their previous clients to learn more about them. 


When buying a house-and-lot package, most developers guarantee you can move and live in the property after a few months or years. But before doing so, you must decide on purchasing a turnkey or standard package. The next step is securing financing for your new home. However, if you’re considering a standard package, think about the overall price, included features, design, and location before signing a contract with a builder.

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