7 Things You Must Know Before Buying a House and Land Package in Perth
Buying a house and land package in Perth has become an increasingly popular option for first-home buyers, investors, and growing families looking for modern homes at affordable prices. With strong land supply, ongoing infrastructure development, and a comparatively accessible property market, Western Australia continues to position Perth as an appealing place to build and invest. While these packages offer flexibility and value, they also come with specific factors that buyers need to carefully consider.
Before you sign a contract on house and land packages Perth buyers should be aware of these seven essential things to ensure they make an informed, confident, and well-planned decision.
What a House and Land Package Really Includes
A house and land package typically involves two separate contracts: one for the land purchase and another for the construction of the home. This structure allows buyers to pay stamp duty only on the land, not on the house build, which can result in significant savings.
However, inclusions can vary widely between builders. Some packages advertise an attractive base price but exclude essential features such as flooring, landscaping, fencing, driveways, or window treatments. In Perth, where coastal conditions can affect building materials, it is particularly important to understand exactly what is included in the specification.
Always request a detailed inclusions list and clarify whether site works, council approvals, and utility connections are covered in the advertised price.
Location and Growth Potential Matter More Than Price
While house and land packages in Perth are often marketed in new estates on the city’s outskirts, not all locations offer the same long-term value. Factors such as proximity to transport links, schools, employment hubs, and planned infrastructure projects can significantly influence future capital growth.
Suburbs in Perth’s northern and southern growth corridors may offer affordability today, but buyers should investigate local council development plans and future amenities. A lower entry price may be appealing, but poor location can limit resale and rental potential.
Choosing the right suburb is just as important as choosing the right house design.
Understand Build Timeframes and Delays
Construction timelines are a critical consideration when buying a house and land package in Perth. While builders may provide an estimated completion timeframe, delays can occur due to weather conditions, material shortages, labour availability, or council approvals.
Western Australia’s building industry has experienced periods of high demand, which can extend construction schedules. Buyers should review the building contract carefully to understand clauses relating to delays, extensions of time, and compensation.
If you are currently renting, ensure you have flexibility in your lease or adequate contingency plans should construction take longer than expected.
Finance Approval and Cash Flow Planning Are Crucial
Financing a house and land package differs from buying an established home. You will usually require a construction loan, with funds released in stages as the build progresses. This means you may be paying rent and a mortgage simultaneously for a period.
Lenders in Australia also assess serviceability carefully, particularly when interest rates fluctuate. Buyers should obtain pre-approval from a lender experienced in construction loans before committing to a package.
It is also wise to budget for additional costs such as upgrades, variations, and post-handover expenses, which may not be included in your loan.
Research the Builder’s Reputation and Financial Stability
Not all builders operating in Perth offer the same level of quality, reliability, or after-sales support. Before choosing a house and land package, research the builder’s track record, online reviews, and completed projects.
Check that the builder is registered with the Building and Energy division of Western Australia and holds appropriate home indemnity insurance. A builder’s financial stability is particularly important, as construction insolvencies can cause significant disruption and stress for buyers.
A reputable builder with transparent contracts and clear communication can make the building process far smoother.
Be Aware of Estate Covenants and Design Guidelines
Many new residential estates in Perth impose covenants or design guidelines to maintain a consistent aesthetic and protect property values. These rules may dictate minimum building sizes, façade styles, fencing types, and landscaping requirements.
While covenants can enhance the overall appeal of an estate, they may also limit your design flexibility or increase construction costs. Buyers should review all estate guidelines carefully before finalising a house design.
Understanding these restrictions early can help avoid costly redesigns or approval delays.
Consider Long-Term Lifestyle and Resale Appeal
A house and land package is not just a financial investment; it is a lifestyle decision. Consider whether the home design suits your long-term needs, including family growth, work-from-home arrangements, and accessibility.
Features such as energy efficiency, storage, outdoor living areas, and flexible floor plans are increasingly valued by Perth buyers. Homes designed with long-term livability in mind tend to perform better in resale markets.
Even if you plan to live in the property for many years, considering future buyer appeal can protect your investment.
Final Thoughts
Buying a house and land package in Perth can be a rewarding pathway to home ownership, offering modern designs, stamp duty savings, and the opportunity to build new. However, success depends on thorough research, careful financial planning, and a clear understanding of what you are buying.
By considering location, builder reputation, inclusions, finance structures, and long-term value, buyers can avoid common pitfalls and make confident decisions in Perth’s evolving property market.
