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Does a house and land package make a good investment?


Across Australia, house and land packages are a popular choice amongst homebuyers, as they are a relatively affordable housing option within communities that offer a great lifestyle. 

The range of benefits that come from buying land and building a new home extends to investors. If you are looking to invest, the ideal property is one which ultimately delivers maximum capital growth and rental yield with minimal outlay of costs – and the right house and land package can help you achieve this. 

Some of the advantages of a house and land package as an investment are the reduced maintenance costs, strong rental appeal and depreciation benefits. As with any property purchase, deciding if it is the right option for you depends on several factors including the location, your budget and your individual investment strategy.

To help get you started, we outline some of the pros and cons of investing in house and land, in comparison to established homes.



The Pros for House and Land Investments:



House and land packages can come with a relatively affordable price tag, as well as a set price, which can be advantageous, particularly if you are just getting started on your property investment journey.

Save on stamp duty

When you buy house and land, you will also save significantly by only needing to pay stamp duty on the value of the land and not the home itself.

Tax benefits

Adding to these cost savings are the potential tax benefits – for example being able to claim a deduction on the depreciation of your new asset, including the fixtures and fittings. Note that it is important to seek guidance from a financial advisor or tax accountant on what you can and can’t claim.


When you buy in a residential estate, your property will be well located near local amenities – beneficial whether you are renting out your property long-term or intend to live in it or sell it down the track. The key is doing your research and purchasing within a high growth area with great existing or planned amenities to maximise your long-term return on investment.

Tenant appeal

New homes with modern finishes are generally appealing to prospective tenants, which will help you to generate a good cash flow.


Your new home will be built to the latest building code requirements and rental standards in your State, meaning that you can start earning rental income sooner.

Maintenance savings

Your newly built property will come with warranties on structure and fittings, saving you on maintenance costs. You can also expect repairs to be less than what they might be for an older property.

Potential equity gains

Another potential pro is that the value of your new house may appreciate during construction, depending on the market, which can fast track you building up equity on your investment.


The Cons for Investing in House and Land:


There are clear benefits of investing in house and land – but what about the downsides? There are a few things to consider when you are weighing up your options.


Additional costs

You will need to remember to factor in additional costs and budget for items such as landscaping, fencing, the driveway and window coverings.

It is important to talk to your builder and to understand your inclusions, plan your budget accordingly to accommodate these essential finishing touches and choose wisely to add maximum value and rental appeal.

More choices to make

You’ll also need to be prepared to make some design decisions early on if building a new home, from the floorplan to the materials and colours used throughout. Through careful selection you can ensure your property holds broad appeal over time for renting or resale.

Narrower suburb selection

Keep in mind that, if you have your heart set on specific suburbs, you may need to broaden your search when you are not buying an established home. You will generally have greater neighbourhood selection when looking at existing properties.

The good news is that there are well located house and land packages available across Australia, including within a range of well situated Cedar Woods estates.

Progress payments

Finance for your house and land package is a little more complex than for established properties, as you are required to make progress payments during construction. To ensure you understand the amounts you are required to pay, work closely with a financial advisor or mortgage broker.


To help you weigh up the relative benefits of investing in house and land, consider some of the pros and cons of buying established homes:


The Pros for Investing in Established Homes:

  1. As the home is already complete, you can view the property at time of purchase.
  2. Location flexibility – depending on what properties are available at the time, you may have greater choices of neighbourhoods.
  3. Everything is usually included as you see it, such as driveways and landscaping.


The Cons for Investing in Established Homes:

  1. Limited customisation as the home is built and designed to previous owner’s tastes, which may not align with your preferences or have broad appeal. With an older property you are more likely to discover maintenance issues that need fixing – these costs could quickly add up.
  2. The tax benefits are more limited with an established property in comparison to a new build. Ensure you discuss what you can and can’t claim with a registered financial advisor.
  3. History – built and designed for previous owner’s tastes and needs.


Will a house and land package be a wise choice for your investment property? The short answer is that it can be. As with any property purchase it comes down to researching the options and choosing the right package to meet your unique goals and deliver you maximum returns.


To learn more about your investment property options, download our handy Investing in Property eBook here.

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