House and land package
A purchase of a vacant block together with a contract to build a new home on it, usually from a builder or developer.
- Usually two contracts: one for the land, one for the build
- Counts as a new build for tax purposes
- Quality of builder and location matters most
How it works
You buy the land, then pay the builder in stages as construction progresses. Stamp duty is often only payable on the land, depending on the state and contract.
Under the 2026 rules
From 1 July 2027, negative gearing for residential property is limited to new builds, for properties not already held at 7:30pm AEST on 12 May 2026. This makes new builds, including house and land, more relevant for investors.
A tax benefit does not make a property a good investment. The location, land value, builder and rental demand still have to stack up. Rothmore discloses any relationship with a builder before recommending a package.
Common questions
Are house and land packages a good investment?
Some are. Many are priced above what comparable established homes sell for, so test the price and location carefully.
When does the rent start?
Only after construction finishes, so plan for months of holding costs with no rent.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.