House and land packages in 2025 – seven key benefits of new home builds driving owner-occupiers and investors to invest.

1. Lower maintenance costs

Investing in a new home means lower initial maintenance costs. Because the home is new, it is far less likely to require repairs or changes in the short term. Conversely, an older house is more likely to require miscellaneous maintenance to structural, plumbing, electricity, or other areas of the home.

According to data from the Home Owners Association, homes built in the last decade attract far lower ongoing maintenance costs (usually 0.5% to 1% of their value for annual upkeep) when compared to a 20-year-old home which may require 2-3% of its value for yearly upkeep and maintenance. 

2. Home warranty

The QLD Home Warranty Scheme provides peace of mind for those investing in a house and land package in the event that anything should go wrong. The Queensland Home Warranty Scheme (HWS) is governed by the Queensland Building and Construction Commission (QBCC) and applies to all building work in QLD valued at over $3,300.

The HWS is a levy that is paid by the builder to QBCC to ensure that the homeowner is covered in the event that work is not finished, or something goes wrong. Before starting work, the building contractor must pay the HWS premium to QBCC to insure the work.

3.Save on stamp duty

Buying a house and land package means that you only pay stamp duty on the land component of the package – not the house. Generally, the house component can be 50% or more of the total cost of a house and land package which means significant savings on stamp duty when compared to an existing property.

4.First home owner grant (FHOG)

The first home owner grant outlines special provisions for those building a new home. Owner builders – that includes those purchasing a house and land package - are eligible for the following grants in Queensland:

• $30,000 where foundations are laid between 20 November 2023 and 30 June 2025 (both dates inclusive)
• $15,000 where foundations were laid before 20 November 2023.

To qualify for the first home owner grant, the property must be a new home valued at less than $750,000, and applicants must meet specific eligibility criteria.

5.Create the home you want

Not only is maintenance lower when you build a new home, but the need to ‘renovate to make it yours’ is infinitely lower when you build a new home to your standards and your requirements. Because you are building the bathroom, kitchen, layout, and living spaces that you want from the outset, you’re less likely to get that renovation itch 12, 24, or 36 months into ownership. 

6.Split your financing

A house and land package allows buyers to bundle the process of buying land and building a home into a single process, but with two financial contracts that split the costs.

In most “house and land packages” there will be two contracts in place with the developer/builder. One for the land, which is to be paid initially, and then another for the home that is to be built on the land. A split contract means that buyers can pay off the land using a traditional mortgage and then pay for the cost of construction with a mix of personal funds and a construction loan.

The division of costs means that buyers can pay the upfront costs to secure the land and then take out a second loan (in due course) as construction commences and progresses through the various building checkpoints. A split contract can help buyers to effectively manage their funds and afford to “secure” a plot of land before going again for the cost of the build.

7.Renters love new homes

House and land packages aren’t just appealing for owner-occupiers, they are also a great proposition for investors. New homes are an attractive proposition for renters looking to move into a home that requires no work or maintenance requests – just move in and make it home. 

Not only are new homes an appealing proposition for would-be tenants, but new homes also offer an array of depreciation deductions that can potentially reduce taxable income and increase tax returns.