Is a house and land package a good option? In this article I am going to outline the pros and cons for buying a house and land package. Purchasing a house and land package can be a good option in some cases if you are a family looking for a particular community that is well set out and has all of the amenities that you are after. Because these new estates are like their name sake ‘new’, the amenities are also new and often of the highest quality. You should also understand the drawbacks of a house and land package before you commit. A house and land package is a newly built property that is being sold “off the plan”. They typically come with a range of customisable designs that you can select from. They are typically built in new land estates. Usually a property developer will purchase land that has been released by the government. The developer will then build a community with the associated infrastructure and facilities. Popular locations for house and land packages Some popular locations for house and land packages in Victoria include: Buying a house and land package is a lot simpler doing it all by yourself. The house plans should be already selected to suit the block that it will be built on including ensuring that it meets the required energy efficiency rating. This can be achieved by ensuring that the house and its windows are appropriately facing to maximise solar orientation. Rental yield is typically higher than an established/second hand house, though you will need to do your research to determine what the likely yield will be for your area and property. You can use realestate.com.au to research the advertised rental amounts. There are two types of house and land packages You settle the land and then after contract the house build. Enter a fixed price contract that includes both house and land when you purchase the land. There are stamp duty saving when you buy a house and land package as you only pay stamp duty on the value of the land and not the house. There is also generous depreciation benefits that you can claim from tax if you are renting out the property. You should talk to a tax professional to get advice prior to purchasing. Lot size - some lots are quite small, this can be good if you don’t want to have to maintain a large garden but also limits your backyard play/entertaining area. Location - some packages are located on the outskirts of the major cities. Depending on your work location and transport options, this may not be very convenient daily commute. Capital gains - in some cases capital gains can be less in these areas, in other cases they can ge good. Do your research before you buy. After evaluating the pros and cons, if you think that a house and land package is the best option for you, you should compare house & land packages and choose a reputable new home builder . Starting enjoying the benefits of a great new home.