Are House and Land Packages a Good Investment for First Home Buyers and Property Investors?
House and land packages have become a popular entry point for both first home buyers and investors, particularly across growth areas in Sydney.
With rising property prices and increasing demand for new housing, many buyers want to know whether a house and land package is not just an affordable option but a smart long term investment.
The short answer is that house and land packages can offer strong potential when chosen carefully, supported by the right builder and located in an area with long term infrastructure growth.
In this guide, we break down the benefits, the risks and the key factors to consider before deciding if this type of investment is right for you.
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What Is a House and Land Package?
A house and land package bundles two components into one streamlined process. The buyer:
- Purchases the land from a developer
- Signs a separate building contract with a builder
This allows buyers to secure a block in a new community and build a home designed specifically for that site.
The appeal often lies in the ability to forecast costs upfront, leverage tax advantages of new construction, and for investors, select a home suited to rental demand.
As Liam Worthington, Marella’s Director, explains, “A house and land package offers clarity from the start. You know what you are buying, what it will cost, and how the finished product will perform for the long term. For many buyers that level of certainty is the difference between stepping into the market or feeling stuck on the sidelines.”
The Investment Benefits
Lower Upfront Costs
One of the biggest financial advantages is stamp duty. Buyers pay duty on the land only, not the completed house. This can save tens of thousands of dollars compared to established properties.
Strong Depreciation Benefits
Since all aspects of the home are brand new, investors can claim depreciation on fixtures, finishes and the building itself.
Appealing to Renters
Tenants are drawn to new homes with modern layouts, low maintenance and often, energy-efficient features. This can result in shorter vacancy periods and more consistent rental income.
Predictable Building Costs
With a fixed or clearly outlined contract, investors know what to expect financially with fewer surprise costs than a traditional build.
Liam notes, “Predictability is valuable for investors. When the inclusions are clear and the process is structured, you can plan your cash flow and make decisions confidently.”
Risks and Considerations to Keep in Mind for Investors and First Home Buyers
Location Matters when Purchasing Property
Many house and land releases are in new estates on the edge of major cities. Growth areas can offer excellent long term potential but only when supported by infrastructure like transport, schools and retail. Investors should look for communities with strong planning behind them.
Hidden Site Costs
Not every block is equal. Factors such as slope, soil classification and site access can alter the final cost of the home. Working with a builder who reviews the land before you commit is essential to reducing unexpected costs or restrictions.
Overly Basic Inclusions Can Affect Appeal
A low advertised price often means minimal inclusions. This may result in unexpected upgrades or a finished home that is less appealing to tenants or future buyers.
Liam adds, “A home that looks good on paper is not enough. The real value comes from livability. When the design, inclusions and location work together, the investment and potential become much stronger.”
Who House and Land Packages Suit Best
House and land packages can be a great option for:
- First home buyers who want predictable costs and a newly built home
- Investors seeking strong depreciation and appealing rental stock
- Buyers wanting a simpler path into growth corridors
- Those who prefer low maintenance and new home warranties
Ready to take your first step? Talk to our trusted team today.
