How to Purchase a Home & Land Package in New South Wales, Australia

Step-by-Step Guide

1. 1

   Step 1: Apply for a loan with a lender.

   This will require you to supply certain financial information to the lender who will then assess your application and issue you a 'Conditional Loan Approval' for a certain amount of funds, based on your financial circumstances.
   
   You have now established a budget and are in a position to buy.
2. 2

   Step 2: Select your House & Land Package.

   This will consist of 2 separate contracts
   - one for the land and one for the house, which go together to form a Home & Land Package.
   
   This may be a predetermined advertised Package or a house design you select from a builder and a suitable block of land sourced by you. , Pay a deposit (normally $1,000) to builder and request a formal quotation to construct the home.
   
   Both these deposits are not refundable and are deducted from the total amount to be paid on each. , Once the lender approves the valuation they will issue a 'Conditional Loan Approval' on the land and an 'Unconditional Loan Approval' on the home tender, they will require a copy of your Building Contract then a copy of Council Stamped approved plans as they become available, later on, to make the loan "Unconditional'. , Pay balance of Land deposit (usually 5%
   - 10% of land price). , Your Solicitor (or Conveyancer) commences Statutory searches in relation to the land. , Your Solicitor (or Conveyancer) settles the Land purchase on your behalf, with your lender.
   
   You are now the legal owner of the land. ,, The time for this can vary greatly between different Council areas. ,, A total time frame of 9
   -12 months. (This will vary with weather conditions & house size).eg.
   
   Single Storey 9 months & Double Storey 12 months and is assuming land is registered. ,,
3. 3

   Step 3: Week 1 - Pay deposit (normally 0.25% of land price) on land and sign a Contract for Sale of Land.

4. 4

   Step 4: Week 2 - Submit both the front page of the Land Contract & Builders Quotation to your lender (or bank) for them to complete a valuation.

5. 5

   Step 5: Week 2-3 - Pay deposit (or balance deposit) to builder and sign your quotation.

6. 6

   Step 6: Week 3-4 - Builder proceeds to draw plans for Council & Statutory Authorities.

7. 7

   Step 7: Week 5-6 - You sign the Builders plans and select colors with Builders Color Consultant.

8. 8

   Step 8: Week 6-12 - (sometimes earlier) Builder prepares Building Agreement for execution by Client.

9. 9

   Step 9: Week 6-12 - Builder lodges plans for Council & Statutory Approvals and approvals are obtained prior to starting construction of your home.

10. 10

    Step 10: Week 11-13 - Builder completes final construction plans and places orders with suppliers and tradesmen.

11. 11

    Step 11: Week 12-14 - Construction Starts - 6 - 9 months until completion.

12. 12

    Step 12: NOTE: Land can not be settled and plans can not be lodged to Council unless land is Registered.

Detailed Guide

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