House and Land
House and Land packages involve purchasing a block of land from a developer and selecting a builder for home design. As builders have land developer partners, House and Land packages are often sold in a bundle deal. They come in fixed price packages which lock in the price for both the block of land and the construction of the house. This can suit some purchasers.
How is a House and Land package financed?
The biggest difference between purchasing a House and Land package and an existing home comes down to the financing. When buying an established home, you would only need to take out a regular mortgage loan. In house and land packages, you are required to take out two loans (usually bundled together in the fixed price): a regular mortgage on your land, and a construction loan for building your house.
Source: https://plantationhomes.com.au/design-and-building-resource/how-do-house-and-land-packages-work
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