4 ways house and land will save you money when building

Building a house can be a costly process. From permits and zoning to tradespeople and materials, it can seem like a marathon until you obtain that coveted certificate of occupancy. If you’re looking to streamline this process, you might consider investing in a house and land. When you construct a house in this way, you don’t have to do the majority of the coordination. Head to a display village and see whether a house and land package in Geelong or Melbourne will work for you. Below are 4 ways house and land will save you serious cash.

Fixed price
Many house and land packages will offer fixed-price contracts. This means that the price that you’re quoted is the price that you will pay. The way that these packages are able to deliver such value is because the building companies will most likely have contracts in place for the supply of materials and labour. This means that they can more accurately estimate costs and access wholesale prices on your behalf. You can often secure a property at a fixed price when you buy Off The Plan as the price can increase during the development of the property, however, you will not be able to see the final build before you invest your money into it. In some cases you can have involvement in some customization features and finishes to the property and there is also potential for capital growth with this method.

Stamp duty discount

Many home buyers are eligible for the new (Jul 2017) principal place of Residence off-the-plan Concession (PPR OTP). If you’re also a first-home buyer, there will be no stamp duty paid on properties up to the value of $600k.  Up to $750k, you can still access a stamp duty discount on a sliding scale. Given that stamp duty is typically payable each time a house is bought, this can save you a huge amount when you’re first entering the housing market. For some people, it’s the difference between having to pay Lender’s Mortgage Insurance because you have more for your deposit, which is something everyone should avoid if possible!


Although you may have selected a particular design with standard fixtures, you’ll often have access to upgrades if you wish. Although they will cost you more money, be clever in your upgrades – and select those that are best handled at the build stage. Fancier taps or benches are much easier to replace down the track rather than raising ceiling heights or widening entranceways. As a general rule, the more difficult it is to access (under the floor, for example), the more costly it will be to upgrade down the track. Don’t forget sufficient cabling for decent internet!

Time is money

This final point really highlights just how much you can save. Especially if you have zero building experience, if you were to build on your own, you would need to spend a decent amount of time researching and reviewing trades, builders, architects and materials. If you think about your hourly rate, how much over the cost of the build would this be worth? Even if you hire a project manager to take over the bulk of the planning, finding the right one for your project will require a fair amount of initial research – it’s a decision that you really need to get right. Happy building!

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