House and Land Packages vs. Off the Plan: What’s the Difference?

If you’re getting started on your exciting journey to home ownership, there are two terms you’re likely to come across when deciding what type of property to purchase: 'house and land package' and 'off the plan.' 

While both options involve buying a property that hasn't been built yet, there are some key differences between the two. Let's explore these differences to help you understand which option might be right for you.

Option 1: Buying a House and Land Package

What is it?

A house and land package involves purchasing both a piece of land and a newly constructed house as a single package deal from a property developer or builder.

House and land packages offer the convenience and potential cost savings of being able to purchase ‘everything under one roof’ rather than buying a house and land separately. 

How does it work?

• Select your land

When you purchase a house and land package, you’ll have the chance to choose your own block of land from a development or subdivision. 

You can make your selection from available lots based on factors such as size, location, orientation, and price.

• Choose your design

Once you’ve selected your land, you can go ahead and choose your preferred house design from a range of options provided by the builder or developer.

You can choose a design that fits your needs and lifestyle, based on factors such as the number of bedrooms, layout and floorplan, and functional features that best suit you and your family.

• House construction

After making your land and house design selections, it’s time for the builder to construct your home on your chosen block of land, according to the agreed-upon specifications.

The construction process will follow a set timeline, so you can look forward to the completion of your home within a specified timeframe.

• Inclusions and extras

Different house and land packages will feature different types of inclusions and optional extras, such as site preparation, landscaping, driveway, fencing, and fittings and fixtures.

The specific inclusions will vary depending on the builder and your chosen package, so be sure to check the details carefully.

‍Option 2: Buying ‘Off the Plan’

What is it?

An off-the-plan purchase refers to buying a property that hasn’t yet been constructed or is still in the planning stages.

Buying off the plan can offer significant cost savings compared to buying a completed house, with the benefit of being able to move into a brand new home.

How does it work?

• Property design

When you buy off the plan, you’re purchasing a property based on plans and drawings provided by the developer or builder (rather than buying a finished house that you can see before you buy).

Off-the-plan properties can cover all types of dwellings, including apartments, townhouses, or freestanding homes within a development.

• Deposit payment

If you choose to buy off the plan, you’ll need to pay an upfront deposit to secure the property.

The deposit amount is usually a percentage of the purchase price and is paid to the developer or builder.

• Construction timeline

After you’ve secured the property with your deposit payment, the next stage is construction. This will be based on the development timeline outlined by the developer.

The timeframe for completion can vary depending on the project size, approvals, and construction progress, so be aware that you may have to wait longer than anticipated if things don’t go according to plan.

• Customisation

Your off-the-plan purchase may come with the opportunity to customise certain aspects of your property, such as finishes, fixtures, and fittings.

This will allow you to add a personal touch to your future home - but be aware that you’ll generally have to stick to certain guidelines set by the developer. 

As you can see, while both house and land packages and off-the-plan purchases ultimately result in you being able to move into a brand new house, they each have their own unique considerations, advantages, and drawbacks.

Understanding what’s involved in each of these types of purchases - as well as the differences between the two - can help you make the best decision for your situation. And once you’ve secured your property, all you have to do is sit back and relax until it’s time to walk through the doors of your new home!

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

‍Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

‍Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

‍There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.