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House And Land Package: Building A Custom Home

By ismadhika •  Updated: 08/25/21 •  5 min read

Are you a first home buyer who hopes to find the perfect residence for yourself and your family? Or are you an established investor searching for a property that best suits your lifestyle and wants to construct your own custom home?

You might be looking at house and land packages if your goal is to purchase a brand-new house that you can design and construct from scratch. The acquisition of a house and land package is one of many alternatives on the market to build your home. It shouts for many a fresh new house designed how they want it.

Many developers and builders offer various home and land packages, so you must know what you need and search for a deal that’s suitable for you.

What Is a House and Land Package?

House and land package includes the purchase of a developer’s piece of land and a house design-builder. Because builders have land development partners, packages for houses and land are frequently offered as a bundle.

They come in set price packages that lock both the land block and the home building into the price. This is helpful in the long term with no extra expenses. The developer subsequently sets up facilities, such as roads, water, and utilities. They are going to construct houses and sell them as a whole house and land package.

How Does a House and Land Package Work?

The primary distinction between buying a house and land package and purchasing an existing house is financing. When purchasing an established home, all that’s required is a conventional mortgage loan. In-home and land packages, you’re needed to get two loans often included in the set price —a conventional mortgage on the land and a construction loan to construct the house.

Thus, financing a home and land package often involves two steps. First, purchasing the property, and secondly, constructing the house. Loans may be obtained individually or in bundles.

Purchasing the land is a typical real estate transaction with a conventional mortgage. It involves obtaining a construction loan, which allows you to ‘draw down’ an agreed-upon amount to pay for each stage of development while your house is constructed. This way, you pay interest only on the funds you use at each step.

Benefits Of House and Land Package

When it comes to house and land packages, you have the option of selecting the land for your home depending on your preferences, as well as a completed home design that fits your requirements.

Here are the other benefits of availing of a house and land package:

All of these benefits are attractive to first-time homebuyers seeking to construct their ideal home in a dream location. Therefore, house and land packages are excellent investment opportunities.

Build A Custom Home in A House and Land Package

The advantage of buying a house and land package is that you get to design your home and customize it to your specific requirements. Builders will offer you various customizable designs to select from as part of your package, from the colors to the finishes.

Suppose you’re looking to build a house in a particular area or suburb. In that case, you’re usually better off purchasing a portion of land and then constructing a new home on it. Otherwise, you may have to wait for developers in your chosen region to produce merged packages.

It’s worth noting that, although some customization is possible, your home’s design is still constrained by pre-determined blueprints. On the other hand, having pre-determined blueprints and a fixed-price package makes it simpler for banks to assess the eventual product’s worth and provide financing for the construction.


If you’ve not yet purchased the property and don’t have your heart set on a particular location, a house and land may be a good value for money. These bundled agreements are vital because they’re handled for efficiency, so costs or time aren’t blowing. In addition, the whole project is managed by one firm from the beginning to the end, which streamlines the homeowner’s procedure and timeline of building a home.