A house and land package combines the purchase of a block of land and the construction of a home into one process, but with two contracts. The land and the house are generally bought from two different companies which is why there are two contracts. Land is purchased from the property developer, while the house is bought from the builder.

House and land packages are popular because buyers can know the combined price of their home and land from the outset, and reduce the amount of stamp duty paid as under a house and land package with two contracts you only pay stamp duty on the land.

As a rule of thumb, house and land packages require a 10% deposit on the land and 5% on the house when you sign your contracts.