How house and land works
A house and land package is two purchases put together so you can see the total price upfront. You sign two separate contracts.
Land contractWith the land developer or their agent. You pay a deposit (often 10% of the land), then the balance when the land settles. Stamp duty is charged on this contract only.
Building contractWith the registered builder. Fixed price, paid in stages as the house goes up. Covered by domestic building insurance.
Aira is not a party to either contract. We put the package together, publish every detail and answer your questions.
Titled land is ready to build on now. Untitled land is still being developed; you may wait months for it to title, and your finance approval can expire in that time. Every package here tells you which one it is.
Your buying journey
- Look around and run the numbersBrowse packages, open the calculator and read the inclusions. If you have questions, talk to us.
- Talk to a broker and an accountantGet pre-approval and check how the purchase fits your tax position. We can suggest independent people; you choose.
- Request the packageChoose the home you like and send a short enquiry. We send you the full package details, including current pricing and inclusions.
- Complete your Expression of InterestIf you want to go ahead, you complete an EOI form. We then request your land contract from the developer and your building contract from the builder.
- Sign the land and building contractsHave a conveyancer or lawyer review both. You pay the land deposit to the developer and the building deposit (5% maximum) to the builder, directly.
- Formal finance and land settlementYour lender values the finished home, then the land settles in your name.
- Permits and site startSoil test, engineering and building permit. Construction usually starts 6 to 12 weeks after land settles.
- ConstructionAround 8 to 12 months for a single-storey home. You receive photos at each stage and approve each progress payment.
- HandoverAfter the occupancy permit, final payment, keys and warranties. A 6-month maintenance period starts.
- Lease it or move inA local property manager can have it listed before handover so it starts earning quickly.
Watch the construction stages step by step
Money: what you pay and when
You never pay money to Aira. Deposits go to the land seller's trust account and to the builder, under your contracts.
| When | What | Typical amount |
|---|---|---|
| Signing | Land deposit | 10% of land |
| Signing | Building deposit | 5% of build |
| Land settlement | Land balance and stamp duty on the land | 90% of land plus duty |
| During construction | Base, frame, lock-up, fixing | 10%, 15%, 35%, 25% of build |
| Handover | Completion | 10% of build |
Your lender pays most of these from your loan. While the house is being built you normally pay interest only, on the amount drawn so far. The calculator estimates this cost.
Buying from interstate
- You can sign contracts electronically and never visit. Many buyers visit once, for handover, or not at all.
- Use a Victorian conveyancer for the land contract. Settlement is done electronically.
- Consider an independent building inspector at frame, lock-up and completion. It costs roughly $400 to $600 per stage and protects you before each payment.
- Victorian land tax applies to investment land here even if you live elsewhere.
- Choose a local property manager before handover so the home is advertised early.
Read the full interstate guide
Key terms explained
- Turnkey
- The home is finished and ready to live in: floor coverings, blinds, driveway, landscaping, fencing and appliances included. Some builders use the word loosely, so always read the inclusions list.
- Site costs
- The cost of preparing the ground: levelling, the type of slab the soil needs, and connecting services. Fixed site costs mean the price will not change after the soil test, within the stated conditions.
- Variation
- A change to the contract after signing that adds or removes cost. Turnkey packages keep these to a minimum.
- Practical completion
- The builder has finished the home to the contract, apart from minor defects. Final payment is due only after the occupancy permit.
- Occupancy permit
- Issued by the building surveyor to confirm the home is safe to live in.
- Domestic building insurance
- Covers you if the builder dies, disappears or becomes insolvent and cannot finish or fix the work. The builder must give you the certificate before taking a deposit.
- LVR and LMI
- Loan to value ratio is your loan as a share of the price. Borrowing above 80% usually means lenders mortgage insurance, a one-off premium that protects the lender, not you.
- Gross yield
- A year's rent divided by the purchase price. A quick comparison, not your actual return.
- Rental appraisal
- A written estimate of rent from a local property manager. Ask for one on any package before you commit.
Questions to ask anyone selling you a package
Ask us these too. If an answer is vague, walk away.
- Who is the registered builder, and what is their registration number?Check it on the Building and Plumbing Commission register.
- Is the land titled? If not, when?
- Are site costs fixed, and under what conditions?
- What exactly is not included?
- Where does the rent estimate come from, and how old is it?
