How Do House & Land Packages Work?

Monday 22 June 2026

House and land packages are a popular way to build a new home in Victoria, particularly in growing estates and new communities. They offer a structured way to secure land and build a home in one coordinated process, but many buyers are unsure how the arrangement actually works.

Unlike buying an established home, a house and land package involves two separate contracts, a staged finance structure and a construction timeline that unfolds over several months. Understanding how the process works will help you decide whether this pathway suits your goals, budget and timeframe.

This guide explains how house and land packages work in Victoria, including contracts, finance, settlement and what to look out for before committing.

What Is A House And Land Package?

A house and land package combines a block of land and a home design into one coordinated purchase. However, it is important to understand that you are entering into two separate agreements.

  1. The first contract is with the land developer to purchase the block. 

  2. The second contract is with the builder to construct the home.

The land contract covers the block itself, including the lot size, estate guidelines and settlement terms. The building contract covers the home design, inclusions, site costs and construction timeline.

House and land packages can take different forms. Some are fixed price packages where the home design and inclusions are predetermined. Others allow more flexibility, enabling you to choose a floor plan and facade to suit a nominated lot.

This differs from buying an established property, where you settle on a completed home in a single transaction. With a house and land package, construction happens after land settlement.

How Do Eight Homes House & Land Packages Work?

Eight Homes offers a wide range of fixed price house and land packages across Melbourne and Geelong. While some packages have limited flexibility due to site conditions, developer requirements or planning controls, the majority can be personalised with alternative home designs, floorplan options, facades and upgrades.

It's important to note that any changes to the advertised package may affect the overall price. Your Sales Consultant can provide updated pricing based on your selected home design, inclusions and upgrades, helping you understand the costs before proceeding.

Lavelle Façade

Lavell Interior

The Process Of Buying A House & Land Package

Step 1: Secure The Land

Once you choose a lot within an estate, you sign a contract of sale with the developer and pay a deposit. A cooling off period may apply, depending on the contract terms.

If the land is titled, settlement can occur within weeks. If it is untitled, settlement will take place once the land is registered.

Step 2: Finalise The Building Contract

You then select your home design, facade and inclusions with the builder. At this stage, you review standard inclusions, site costs and any upgrade options.

A fixed price quote outlines the agreed build cost, including allowances where applicable. It is important to understand what is included and what may vary based on site conditions. In some cases clients may come to us first, fall in love with a home design then we help them secure a block that suits. They still need to secure the land first but worth a mention or does it complicate it?

Step 3: Finance And Approvals

Finance for house and land packages is typically structured as a split arrangement. The land loan is settled first, followed by a construction loan for the build.

Lenders assess borrowing capacity, issue formal approval and may conduct valuations before construction begins.

Step 4: Land Settlement

At settlement, stamp duty in Victoria is generally calculated on the land value only, not the completed home. Once settlement occurs and the land is titled, construction can commence, subject to permits and approvals.

Step 5: Construction Phase

Construction progresses through stages, with payments made at key milestones. These are known as progress payments.

The build timeline varies depending on the design and site conditions. Once complete, the home receives an occupancy permit and is ready for handover.

House and Land

How Finance Works For House & Land Packages

Because there are two contracts, finance is structured differently from purchasing an established home.

The land component is financed first. The construction component is then funded through a construction loan, where the lender releases funds in stages as work progresses.

This staged drawdown process means you only pay interest on funds that have been used, rather than the full build amount upfront.

Buyers should also understand how lender requirements, valuations and approval timing can influence when construction begins.

What Is Included In A House & Land Package?

The land component includes the block itself, subject to estate design guidelines and developer requirements.

The build component includes the home design, standard inclusions and site preparation. Inclusions vary between builders, so it is important to review what is covered in the fixed price and what may be considered an upgrade.

Site costs, such as slab design adjustments or additional earthworks, can vary depending on soil conditions. Clarifying these early helps avoid unexpected changes later.

Titled Vs Untitled Land

Titled land is registered and ready to settle, allowing construction to begin sooner.

Untitled land has not yet been registered with the titles office. Settlement occurs once registration is complete, which can affect timing and finance approvals.

Understanding the difference between titled and untitled land is important when planning your build start date. You can read more about this in our Guide to Titled and Untitled land.

Saara Exterior

Saara Interior

Considerations Before Committing

While house and land packages provide structure and clarity, buyers should review all documentation carefully. A fixed price does not automatically mean there will be no variations. Estate design guidelines may influence facade choices. Construction timeframes depend on site conditions and approvals.

Taking the time to understand both contracts, inclusions and finance structure ensures you enter the process with confidence.

House & Land Packages For First Home Buyers

House and land packages are often attractive to first home buyers due to their staged payment structure and potential eligibility for the First Home Buyer Grant in Victoria.

Stamp duty concessions may apply to the land component, depending on eligibility and thresholds.

However, the process is not limited to first home buyers. Upsizers and investors also choose this pathway for the ability to build new in established estates.

House and Land

Final Steps Before Choosing A House & Land Package

Before committing to a house and land package, review available packages carefully and compare inclusions properly. Speak with your lender or broker to confirm borrowing capacity and understand how a construction loan works in practice.

If you would like to explore available options from Eight Homes, you can view the current House And Land Packages to see what is available across Victoria.

Frequently Asked Questions