WHAT’S INVOLVED

Stamp duty.

If you are paying for an existing home that costs $700,000, you’re paying stamp duty on the full amount. If you are buying a house-and-land package, however, you are paying stamp duty only on the land component, which in this example might only be $200,000. Government help. Typically more incentives exist for a new build. Initial outlay. Depending on who you are dealing with, for a home-and-land package you might pay a deposit of $1000-$2000 to secure the land and then 10% on the land only. If the land is not registered already and it’s a new subdivision, there might be a bit more time to save for the build component. However, if the land is ready to go things will move quickly. With the existing property it’s usually 10% of the total cost of $700,000. Time.

Typically, a house is built in six to nine months, but it can take as long as two years.