How to buy a House and Land Package in 2025 - Heres what you need to know

What first home buyers should look our for when selection your land and builder this year

The journey to buying a house and land package in Australia has never been more complex than it is in 2025. Since COVID-19, the construction industry has faced unprecedented challenges—ranging from material shortages and trade labour constraints to skyrocketing costs and infrastructure delays. All states have had their challenges, from low stock due to a frenzy of first home buyers taking the government grants, or limits to land stock due to infrastructure capacity reaching its limits. These issues have led to many estates having extended land titling delays, meaning many homebuyers waiting one, two and even three + years before construction can even begin.

On top of this, many builders have struggled to stay afloat, with some collapsing mid-project, leaving clients stranded. Others have relied on upfront deposits to maintain cash flow, hoping they can complete projects as planned. Given these risks, it is imperative that prospective homeowners conduct thorough due diligence when choosing land, selecting a builder, and signing contracts.

If you’re planning to build a house in 2025, this guide will walk you through the key steps to ensure a smooth, financially sound, and stress-free process.

Choosing a block of land in a new estate - finding titled land in certain areas can be difficult.

1. Choosing the Right Land

If you haven’t secured a block yet and are looking to build in a new estate, it’s critical to understand exactly what you’re signing up for. Often, land in new developments is sold off the plan, meaning you’re purchasing before the land is titled and officially ready to build on. Developers may promise that titles will be available in 3 to 6 months, but delays are common.

To get a better sense of how close your land is to titling, ask the land agent:

✔️ What stage are the civil works at?

✔️ Are roads and kerbs already installed? (If so, titling is likely close.)

✔️ Are they still laying services or completing cut and fill? (This means titling may be a long way off.)

Why This Matters

• Longer delays = potential price increases. If your land settlement is pushed out, construction costs may rise, and your builder may pass those increases onto you.

• High demand means fewer protections for buyers. In today’s seller’s market, developers can require large deposits and even unconditional offers. This means if your land is delayed, you might have to wait it out or risk losing your deposit.

• The silver lining: Land values tend to rise over time, so a delay could mean your block is worth more when it finally titles.

Ensure you know what to look out for when comparing builders quotes and floor plans

2. Comparing Builders & Quotes: What to Look For

Once you’ve secured land, the next step is choosing the right builder. Many homebuyers make the mistake of simply comparing base prices, but this can be misleading. The lowest quote is not always the best deal—it’s crucial to look at what’s included and excluded.

Key Factors to Check in a Builder’s Quote

✔️ Ceiling Heights: One builder may allow for 2.4m ceilings, while another includes 2.7m.

✔️ External Works: Are paving, stormwater, and landscaping included?

✔️ Site Works & Footings: These are often listed as Provisional Sums (PC Sums)—estimates that can change later. Some builders deliberately underquote these costs to seem more competitive.

✔️ Soil & Site Conditions: Costs for footings and site works depend on factors like soil type, land slope, flood zones, and bushfire risk. Ensure your builder has accounted for these properly.

Pro Tip:

An independent building consultant can help you break down quotes and ensure you’re comparing apples to apples. At Home Path Advisor, we regularly find hidden costs that could save homeowners $3,000 to $30,000 in unexpected variations.

Not sure what to look for? Have a chat twith us to see how we can help.

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Ensure you do your due diligence on your builder

3. Due Diligence on Your Builder

Once you’ve chosen a builder and floor plan, do additional research to ensure they are reputable, financially stable, and capable of delivering on their promises.

How to Check Your Builder’s Credibility

✔️ Confirm Their License & Insurance: Ask for their builder’s license and warranty insurance details.

✔️ Ask About Their Workload: How many projects do they currently have under construction? How many supervisors do they employ?

✔️ Supervisor-to-Project Ratio: Some project builders have one supervisor managing 20 to 80 homes at once. This means limited communication and longer delays if problems arise.

✔️ Check Variation Fees: If you need to make changes after signing the contract, what are the costs? Some builders charge high fees for variations, making last-minute changes expensive.

✔️ Chat to past customer: If you can. chat with someone who is built with them before, check reviews and you can also ask the industry and see what trades think of them. Are they someone who pays their trades on time?

The Risk of Builder Collapse

Unfortunately, in today’s market, builder insolvencies are a real concern. Choosing a builder with strong financials and a solid track record can help minimise your risk.

Make sure you go through your building agreement with an expert

4. Understanding Your Building Contract

Your contract is the legal foundation of your build, outlining everything from construction timelines to progress payments and potential price increases. Many homeowners don’t fully understand what they’re signing, which can lead to costly surprises later.

Key Clauses to Watch For

✔️ Construction Duration: How long does the builder have to complete your home?

✔️ Progress Payments: When are payments due, and what triggers each stage?

✔️ Rise & Fall Clauses: These allow builders to pass on material and labor cost increases if delays occur. If your land is titling in 6-12 months, be prepared for potential cost escalations.

How to Protect Yourself

Before signing, ask your builder:

• What are the typical price increases every six months?

• What costs are locked in, and what could change?

If you’re unsure about any contract terms, Home Path Advisor can review your contract independently and provide expert advice.

Final Thoughts: Building Smart in 2025

Building a home in 2025 requires more planning and caution than ever before. The challenges in the market—from land delays to builder stability—make due diligence essential at every step.

Key Takeaways:

✅ Research land availability and titling timelines before purchasing.

✅ Compare builders beyond the base price—understand what’s included.

✅ Investigate your builder’s financial health and supervision capacity.

✅ Review your contract carefully and prepare for potential price increases.

If you’re feeling overwhelmed by the process, Home Path Advisor is here to help. Our independent building advisory services ensure you get the best value, avoid costly mistakes, and have peace of mind before you have put pen to paper.

📩 Book a free chat with an expert today!

Introductory Call (Approx 15min)

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