A house and land package looks like one price. It is two contracts: one for the land, with the land developer, and one for the build, with the builder. Before you sign either, know what sits behind each.
Turnkey, or not
A turnkey package is finished to move-in condition at a fixed price: floor coverings, window coverings, driveway, fencing and landscaping included. A package that is not turnkey can leave thousands still to spend before a tenant moves in. Two packages at the same price can be very different investments for that reason alone.
Land preparation costs and fixed prices
Every block is different underneath. Slope, soil and rock change what the slab and the drainage cost. A fixed-price contract with fixed land preparation costs puts that risk on the builder; a contract with provisional sums leaves it with you. The contract says which one it is.
Timing and the money in between
Land in a new estate is often sold before it is titled. The land deposit is paid on signing and the balance when the land registers, which can be months away. The build is then paid in stages, with interest on each stage, and no rent until the home is finished and let. That gap belongs in your plan.
Rent, depreciation and the 2026 rules
A new home brings a full depreciation schedule. Under the 2026 rules, its first owner keeps negative gearing from the 2027-28 income year and, on sale, can choose the 50 per cent capital gains discount or indexation. Against an established home bought after 7:30pm AEST on 12 May 2026, which cannot offset its losses against wages from the 2027-28 income year, those are real advantages. They do not replace the basics: an independent rental appraisal, a check on how many similar homes are being built nearby, and land in a place people want to live.
Before you sign
- Is the price turnkey, and what exactly is included?
- Are land preparation costs fixed, or are there provisional sums?
- When does the land register, and what is paid before then?
- What has the builder built before, and how long did it take?
- What will it rent for, according to someone who is not selling it?
Over time the land does the growing, and the house earns the rent in the meantime. A package is worth the two together, and no more.
Before you sign, have the weekly cost run and the contract put into plain words, with legal advice from a solicitor. Once you act, our concierge keeps your solicitor, builder and broker in step to the keys. To start, book a first conversation. It costs nothing.
Nicholas Lockhart
Contract terms and duty rules differ by state; a solicitor can review the contracts before you sign.
Source: Australian Taxation Office, Tax reform - Boosting home ownership - Reforming negative gearing and capital gains tax (updated 29 June 2026).