Version: 2025–2026 financial year | Last updated: May 2026
Disclaimer: This document is provided for general information only and does not constitute legal or financial advice. Government policy may change at any time. Please consult a licensed solicitor or conveyancer and a mortgage broker for the most current information.
1. What is a House and Land Package?
A House and Land Package (referred to below as "H&L") is a way of purchasing a home that bundles the purchase of land together with the construction of a new house. You will typically select a lot within a developer's estate and then enter into a building contract with a builder, who constructs the new home in accordance with the floor plan you have chosen.
The defining feature of an H&L: it is in fact two separate contracts — a Land Contract entered into with the developer, and a Building Contract entered into with the builder. Both contracts may be offered by the same company, but they are legally independent of one another.
The principal advantages of an H&L:
- Transfer duty (stamp duty) is calculated on the land value only, which can save you anywhere from several thousand to tens of thousands of dollars.
- New homes are eligible for government grants and concessions (the First Home Owner Grant, transfer duty concessions and so on).
- A Fixed Price Contract locks in the construction cost and reduces the risk of cost overruns.
- Depreciation benefits: the tax depreciation available on a new home is far greater than on an established property, which is particularly advantageous for investors with a regular salary income.
2. Overview of the Complete Purchase Process
The table below sets out the complete timeline from the initial decision to buy through to receiving the keys at handover, together with the value-added services Plus Value Property provides above and beyond the industry standard:
| Stage | Step | Key actions | Costs / Payments | Plus Value value-added services |
|---|---|---|---|---|
| 1 | Establish your budget and the policies that apply to you (Pre-approval) | Confirm your buyer category (first home buyer / non-first home buyer / foreign buyer) and understand the concessions and restrictions that apply Engage a mortgage broker to obtain loan pre-approval, confirming your maximum borrowing capacity and monthly repayments Work backwards from your borrowing capacity to set an overall budget ceiling Prepare proof of income, bank statements, identification and details of existing liabilities | Pre-approval is usually free of charge Some brokers charge a consultation fee of approximately $0–$500 | Dedicated purchase calculator Plus Value Property clients have complimentary access to Plus Value's proprietary purchase-calculation system, which accurately assesses deposit requirements, transfer duty costs, borrowing capacity and cash flow during the holding period, enabling comprehensive financial planning and early identification of risk. Direct access to the group's in-house lending resources Dedicated access to the group's senior in-house mortgage brokers for borrowing-capacity assessments and pre-approval advice and applications, helping you secure a higher loan amount and a more competitive interest rate. Early identification and management of risk From the very start of the process, we help identify potential lending risk factors (such as income structure, existing liabilities and policy restrictions) and develop solutions in advance, reducing the risk of a loan application being declined at a later stage. Complimentary one-stop professional advisory support Complimentary joint consultation with a panel of professionals (solicitors, accountants, mortgage brokers and property advisers), so that the optimal purchasing strategy can be developed from legal, taxation and financing perspectives. |
| 2 | Research lots and floor plans | Analyse population growth, rental demand and planned infrastructure in the area Research the developer, the builder, the estate's location, lot size, orientation, topography and surrounding amenities Compare inclusions, pricing and floor plans across different builders Visit display homes or inspect sites in person | Generally no direct cost | Dual industry background as both developer and builder The Plus Value Property team has hands-on experience on both the developer and builder sides of the industry, giving us a deeper understanding of how projects are developed, how construction costs are structured and what underpins good product design. Insight into industry information and pricing logic Approaching each project from the development and construction side, we help clients judge a project's true value and whether its pricing is reasonable, avoiding the risk of paying a premium as a result of information asymmetry. Early identification of potential risks and hidden issues Drawing on an in-depth understanding of industry processes, we help identify potential risk points across planning, construction and delivery. Targeted recommendation of quality projects and lots Carefully selected estates and lots matched to your owner-occupier or investment objectives. In-depth analysis of overall lot value A comprehensive assessment of each lot's strengths and weaknesses across the key dimensions — orientation, street position, corner-lot attributes and slope — to secure long-term value. Area growth and investment return assessment Analysis of an area's future growth potential, combined with core indicators such as rental yield, demographics and infrastructure, to support forward-looking investment decisions. |
| 3 | Submit an EOI / reserve a lot (Expression of Interest) | Sought-after lots require a prompt decision Confirm whether the EOI deposit is refundable and how long the lot will be held Submit the EOI to the developer or selling agent and pay the deposit to secure the lot Progress the legal review, loan preparation and formal contract signing within the holding period | The EOI deposit is usually $1,000–$5,000 Refundable in most cases, but subject to the developer's terms | The advantage of deep developer relationships Drawing on long-standing relationships with key developers, we can obtain first-hand information sooner and, on some projects, secure better-quality or more advantageous lots for our clients. Professional review of EOI terms and risk control We help complete and carefully check the EOI terms, clarifying the refund conditions and potential risk points to reduce the risk of funds becoming non-refundable. Strategy for competitive projects In popular projects or highly competitive situations, we help develop a lot-acquisition strategy and priority ranking to improve your chances of securing your preferred lot. |
| 4 | Sign the Land Contract | Confirm whether protective conditions such as Subject to Finance and Subject to Due Diligence are required Have the land contract reviewed by a solicitor or conveyancer Pay the formal land deposit and enter the cooling-off period | The land deposit is usually 5%–10% of the land price Solicitor / conveyancer fees are approximately $1,000–$3,000 Withdrawing during the cooling-off period usually incurs a penalty of 0.25% of the land price | Dedicated legal support (complimentary conveyancing for life) Every client who purchases through Plus Value Property enjoys complimentary conveyancing solicitor services for life. Multi-party coordination and process management We liaise with solicitors, developers and selling agents throughout, improving signing efficiency and reducing miscommunication. Lifetime management and retrieval of purchase records We establish a dedicated purchase file for each client, consolidating and securely storing all key documents. Clients can retrieve the relevant records at any time — whether for tax returns, refinancing or resale. |
| 5 | Select a builder and design | Confirm the floor plan, standard inclusions and upgrade options Check whether site costs, landscaping and similar items are included in the quote Confirm the contract type, price-escalation clauses and the variation procedure | Generally no cost Some builders charge a design fee of approximately $500–$5,000, which can be credited back after signing | Precise matching to the right builder We help shortlist the most suitable builder based on your budget, product positioning and owner-occupier or investment objectives. Quote structure review and cost control We systematically review builders' quotes and inclusions to identify potential hidden costs (such as site costs, upgrade items and variation charges), keeping the overall construction budget under control. Floor plan and specification optimisation Based on market demand and likely future resale or rental performance, we advise on optimising the floor plan and upgrade selections, enhancing the home's practicality and long-term asset value. |
| 6 | Sign the Building Contract | Review every clause of the building contract Pay the construction deposit and confirm that all variations and upgrades have been written into the contract Check the commencement date, overall construction period and warranty provisions Confirm the QBCC insurance and the contract's payment structure | The construction deposit is usually 5% of the contract price | Review of core building contract terms and risk control We help identify and review the key commercial terms (such as the price-lock mechanism, price-escalation clauses, construction timeframes and liability for default), ensuring the contract structure is clear and the risks are manageable. Review of upgrade and variation clauses We review every upgrade selection and potential variation mechanism item by item, ensuring that every cost and item is expressly written into the contract so as to avoid later disputes or additional expense. |
| 7 | FIRB application (if applicable) | Foreign buyers and certain visa holders must apply for FIRB approval Confirm whether FIRB approval is required before signing, and submit the application as soon as possible after signing The contract should include a Subject to FIRB Approval clause Submit your personal and property details through the ATO's online system | FIRB application fees usually start from $15,100 Fees are tiered according to property value | FIRB applicability assessment and application strategy We help determine whether a FIRB application is required and advise on the timing of the application based on the transaction structure and key dates. Reminders on protective contract clauses We remind you of, and help include, the appropriate FIRB protective clauses in the contract (such as Subject to FIRB Approval), reducing transaction risk should approval not be granted. Multi-party coordination of the approval process We liaise with solicitors and mortgage brokers to jointly progress the FIRB application and minimise approval delays. |
| 8 | Formal loan approval | Submit the land contract and building contract to the bank for formal approval The bank carries out valuations of the land and the construction Obtain Unconditional Approval Confirm the loan structure and the drawdown mechanism for the subsequent construction loan | Valuation fee approximately $0–$600 Loan application fee approximately $0–$600 Waived by some lenders | End-to-end management of the loan approval process We help prepare the application documents, supply any supplementary information and liaise with the bank throughout, continually tracking the progress of the approval to minimise unnecessary delays. Bank valuation reminders and broker coordination We help coordinate the bank's valuation process and the mortgage broker, promptly addressing key issues that arise during approval to improve both the efficiency and the success rate of the application. Clarifying the loan structure and drawdown arrangements We help you clearly understand the structural differences between a land loan and a construction loan, and the staged drawdown mechanism, so that funding can be planned in advance and cash-flow gaps avoided. |
| 9 | Land settlement | Registered land usually settles within 30–90 days Off-the-plan land must await title registration Electronic conveyancing and the transfer of funds are completed through PEXA Arrange title searches, planning searches and other due diligence The balance of the land price is paid from the bank loan Transfer duty, conveyancing fees and government registration fees are also payable | Full tracking of settlement milestones We continually monitor the key land settlement dates to ensure every step proceeds to plan. Multi-party coordination and settlement documentation We liaise with solicitors, mortgage brokers and the developer, coordinating the preparation of the settlement documents and helping calculate the funds required for settlement. Funding arrangements and risk alerts We provide advance reminders regarding the funds required before and after settlement, the loan drawdown and related costs, avoiding settlement delays or the risk of default arising from funding gaps. | |
| 10 | Construction commences | The builder applies for Building Approval (BA) Construction formally commences once the BA is issued Confirm construction insurance arrangements before commencement Notify the bank to prepare for the construction loan drawdown phase | Building approval fees approximately $500–$2,000 Construction insurance approximately $1,000–$2,500 per year • These costs are included in a fixed-price contract | Pre-commencement checklist We help you systematically work through the key items that must be completed before construction begins (such as approvals, insurance and loan conditions), ensuring all preparations are in place so that the commencement date is not affected. Multi-party process coordination and progress tracking We continually coordinate the hand-offs between the builder, the bank and the insurer, aligning information and progress across all parties so that construction gets under way smoothly. Confirming the conditions for construction loan drawdowns We remind and help you confirm the conditions that must be met before construction loan drawdowns can commence (such as certified plans and the bank's approval requirements), avoiding drawdown delays caused by unmet conditions. |
| 11 | Construction phase | Construction generally proceeds in stages, with payments made stage by stage The builder issues a progress payment claim on completion of each stage Independent building inspections at key stages are recommended Any change should be confirmed in writing by way of a Variation Order Progress payments are usually made by bank drawdown | Inspection fees approximately $300–$600 per inspection | End-to-end tracking and management of construction progress We monitor construction progress throughout, help you communicate with the builder, and maintain a complete project file and milestone record so that the construction process is transparent, orderly and traceable. Variation impact assessment and cost control Drawing on the team's developer and builder background, we help you assess the real impact of every variation on budget and timeframe, avoiding unnecessary upgrade expenditure or construction delays and improving the quality of your decisions. Construction quality control and third-party support We recommend professional independent building inspectors and advise on inspections at key construction stages, helping you control build quality from an independent perspective and reduce delivery risk. |
| 12 | Practical Completion Inspection (PCI) | Arrange the PCI once the Practical Completion notice is received Engage an independent building inspector to accompany you Inspect the home item by item and compile a defects list Ensure the builder completes rectification within the agreed timeframe | The final inspection usually costs approximately $400–$800 | Professional building inspector support (complimentary exclusive benefit) We provide clients with a complimentary practical completion inspection by a professional independent building inspector, delivering a thorough third-party assessment of build quality and further raising the standard of handover. PCI guidance and preparation We help you prepare a checklist of the key points to cover at the Practical Completion Inspection (PCI), ensuring critical details are not overlooked and improving the efficiency and thoroughness of the inspection. Defect rectification follow-up and quality assurance We help you track progress against the defects list and ensure the builder completes the rectification work as agreed, so that the final delivered quality meets the required standard. |
| 13 | Handover / final settlement | Arrange a re-inspection once the builder has rectified the defects Pay the final progress payment and collect the keys Receive the warranty documents, user manuals, remote controls and other materials The defects liability period and the long-term structural warranty period commence | The final progress payment is usually 15% of the contract price Paid by bank drawdown | Handover gift pack Plus Value Property clients receive an exclusive handover gift pack. Handover documentation review and completeness check We help you systematically check the handover documents (such as warranties, manuals and certificates), ensuring everything is complete and there are no obstacles to ongoing use. Asset strategy planning and implementation support We provide post-handover advice on leasing, resale or long-term holding strategies tailored to your objectives, and can help connect you with the relevant resources to maximise the value of your asset. Ongoing warranty-period support and resource connections We continue to provide advisory support throughout the warranty period, helping you liaise with the builder, tradespeople and related service providers, for greater peace of mind and convenience during ownership. |
**Overall timeline:** From EOI to keys in hand, if the land is already registered, the fastest timeframe is approximately 8–14 months; if the land is unregistered (off-the-plan), the overall timeframe is typically around 18–30 months.
About EOIs: An EOI (Expression of Interest) is a common way of reserving a lot in Australian house and land transactions. Typically, on payment of a deposit of $1,000–$5,000, the lot is held for you for a limited period. In most cases the deposit is refundable, but this is always subject to the developer's written terms. An EOI is not a formal contract; you must still complete your due diligence, legal review and formal contract signing within the holding period.
3. The Two Contracts in Detail
3.1 The Land Contract
| Item | Details |
|---|---|
| Contract type | The standard contract in Queensland is usually the REIQ Contract for Houses and Residential Land |
| Deposit | Usually 5%–10% of the land price, payable on signing (payment by instalments may be negotiated) |
| Cooling-off period | The standard period is 5 business days (it may be waived in writing in advance); terminating during this period incurs a penalty of 0.25% of the land price |
| Subject to Finance | A finance clause (usually 14–21 days) may be included, allowing you to withdraw without penalty if the loan is not approved |
| Subject to Due Diligence | A due diligence clause may be included to allow the condition of the land, planning matters and so on to be checked |
| Title registration | If the land is not yet registered (off-the-plan), the settlement date depends on when the developer completes the civil works and registers the title — a date that is outside your control |
| Sunset Date | The latest settlement date specified in the contract; once this date has passed, either party may terminate |
| Settlement | Completed through the PEXA electronic platform, with your solicitor or conveyancer handling all transfer formalities |
3.2 The Building Contract
| Item | Details |
|---|---|
| Contract type | Usually the HIA (Housing Industry Association) or QBCC (Queensland Building and Construction Commission) standard contract |
| Deposit | Usually 5% of the contract price (the QBCC caps the deposit at 10%) |
| Fixed price | Most H&L packages are Fixed Price contracts, but they usually include a rise and fall clause (cost adjustments arising from changes in materials or regulations) |
| Inclusions | A detailed list of all standard included items (flooring, kitchen, bathrooms, appliances and so on) — check every item |
| Site Costs | Site works (levelling, excavation, special footings and so on); confirm whether these are included in the fixed price |
| Variations | Any change outside the scope of the contract (upgrades, additions and so on) must be confirmed in writing by way of a signed Variation Order |
| Construction period | The contract should clearly specify the number of construction days or the completion date |
| Defects Liability Period | Usually 6 months after completion (the structural defects warranty period is usually 6 years and 6 months) |
| QBCC Home Warranty Insurance | Any construction work valued above $3,300 must be covered by home warranty insurance arranged by a QBCC-licensed builder |
4. Construction Stages and Progress Payments
The construction loan component of an H&L is usually paid by way of "progress payments": once the builder has completed a stage, it requests payment (a drawdown), and the bank releases the funds after its valuer has inspected the work and confirmed it is complete.
4.1 Standard construction stages
| Stage | Name | Share | Principal works |
|---|---|---|---|
| 1 | Deposit | 5% | Paid on signing the building contract |
| 2 | Base / Slab | 15% | Site levelling, excavation, plumbing rough-in, pouring of the concrete footings/slab |
| 3 | Frame | 20% | Wall framing, roof trusses, window and door frames erected |
| 4 | Lock-up / Enclosed | 25% | Roof tiles or sheeting, external brickwork or cladding, doors and windows installed — the home can be "locked up" |
| 5 | Fixing / Fit-out | 20% | Internal plasterboard, painting, kitchen cabinetry, bathroom fittings, flooring, electrical and plumbing fit-off |
| 6 | Practical Completion | 15% | Final clean, landscaping, driveway, fencing, final inspection |
Note: The percentages above are the most common standard allocation in Queensland. Some builders may use slightly different percentages, or add or remove stages. The contract will clearly set out the payment percentage and the trigger for each stage.
4.2 The progress payment process
Builder completes a stage → Builder issues a payment claim (invoice) ↓ You or your broker notify the bank → The bank arranges for a valuer to inspect the site ↓ The valuer confirms the work is complete → The bank approves the drawdown ↓ Funds are paid directly to the builder → You begin paying interest on that drawdown
Key points:
- You pay interest only on the amounts actually drawn down, not on the full loan limit.
- Each drawdown usually takes 3–7 business days to process.
- Engaging an Independent Building Inspector to inspect the work before each stage payment is recommended.
5. The Loan and Payment Process from Start to Finish
5.1 Loan structure
An H&L typically involves one of two loan approaches:
| Loan approach | Details | When it applies |
|---|---|---|
| Separate loans (Land Loan + Construction Loan) | The land loan is used to purchase the land first; the construction loan is activated after land settlement | The standard approach for most H&L purchases |
| Combined Loan | The bank approves a single total loan amount covering both the land and the construction in one step | Offered by some lenders; a simpler process |
5.2 Flow of funds at each stage
| Point in time | What you pay | Source of funds | Notes |
|---|---|---|---|
| Submitting the EOI | EOI deposit ($1,000–$5,000) | Own funds | Secures the lot; usually refundable; later credited towards the formal land deposit |
| Signing the land contract | Land deposit (5%–10%, less the EOI deposit already paid) | Own funds | Usually paid by bank cheque or transfer; the EOI deposit counts towards this amount |
| Signing the building contract | Construction deposit (5%) | Own funds | Some builders accept less than 5% |
| Land settlement date | Balance of the land price + transfer duty + legal fees + transfer fees | Bank loan + own funds | Transfer duty is calculated on the land value only |
| Base stage complete | 15% of the contract price | Construction loan drawdown | Paid automatically to the builder after bank verification |
| Frame stage complete | 20% of the contract price | Construction loan drawdown | As above |
| Lock-up stage complete | 25% of the contract price | Construction loan drawdown | As above |
| Fixing stage complete | 20% of the contract price | Construction loan drawdown | As above |
| Practical completion | 15% of the contract price | Construction loan drawdown | The final payment is made once the PCI has been passed |
5.3 Repayment timeline
- After land settlement: Repayments on the land loan component commence (principal and interest, or interest only, depending on the loan product).
- During construction: Interest increases progressively with each drawdown. Construction period loans are usually Interest Only.
- After completion: The loan converts to standard principal and interest repayments, or you may apply to remain on Interest Only for a further period.
6. Policy Comparison by Buyer Category
6.1 Comparison overview
| Policy item | Australian citizen / PR (first home buyer) | Australian citizen / PR (non-first home buyer) | Temporary visa holder | Non-resident foreign buyer |
|---|---|---|---|---|
| FIRB approval | Not required | Not required | Required | Required |
| FIRB fee | N/A | N/A | New dwelling / vacant land: from $15,100 | New dwelling / vacant land: from $15,100 |
| Eligible property types | New + established | New + established | New dwellings / vacant land only (established dwellings prohibited from April 2025) | New dwellings / vacant land only |
| First Home Owner Grant (FHOG) | $30,000 (until 30 June 2026) | Not applicable | May be eligible in some cases (residency requirements apply) | Not applicable |
| Transfer Duty | Fully exempt (new home / vacant land, no price cap from May 2025) | Standard rates | Standard rates | Standard rates |
| AFAD (additional duty) | Not applicable | Not applicable | 8% additional transfer duty | 8% additional transfer duty |
| Land tax surcharge | Not applicable | Not applicable | 2% land tax surcharge | 2% land tax surcharge |
| First Home Guarantee (FHBG) | 5% deposit with no LMI | Not applicable | Not applicable | Not applicable |
| Minimum deposit | 5% (with the guarantee) / 10–20% | 10–20% | Typically 20–30% | Typically 30–40% |
6.2 Scenarios in detail
Scenario A: Australian citizen or permanent resident (PR) — First Home Buyer
Scenario B: Australian citizen or permanent resident — non-first home buyer (including investors)
- FHOG: not applicable. Transfer duty: payable at the standard rates (on the land component only) on a sliding scale of approximately 1.5%–4.5%. No AFAD.
- Loans typically require a 10%–20% deposit (investment loans may require more).
Example calculation ($650,000 H&L = $300,000 land + $350,000 construction):
| Item | Amount |
|---|---|
| Transfer duty on the land ($300,000) | ~$6,100–$7,175 |
| FHOG | $0 |
| FIRB fee | $0 |
| AFAD | $0 |
| Deposit required (20%) | ~$130,000 |
| Total upfront costs | ~$137,000 + legal fees / sundry costs |
Scenario C: Temporary Visa Holder
From 1 April 2025 to 31 March 2027, temporary residents are prohibited from purchasing established dwellings (even to live in). An H&L Package is classed as a new dwelling / vacant land and may still be purchased.
| Additional requirement | Details |
|---|---|
| FIRB approval | Mandatory; submit before signing, or as soon as possible after signing |
| FIRB fee (new dwelling / vacant land ≤ $1M) | $15,100 (2025–26 FY) |
| FIRB fee ($1M–$2M) | $30,300 |
| FIRB processing time | Usually 30–90 days |
| AFAD (additional transfer duty) | 8% (calculated on the land value) |
| Land tax surcharge (LTFS) | 2% (calculated on the unimproved land value, levied annually) |
| Vacancy Fee | If the dwelling is left vacant for more than 183 days in a year, a vacancy fee applies (equal to 2× the FIRB application fee) |
| Departure condition | On expiry of the visa or departure from Australia, the property must usually be sold within a specified period (a FIRB condition) |
Example calculation ($650,000 H&L = $300,000 land + $350,000 construction):
| Item | Amount |
|---|---|
| Transfer duty on the land (standard rates) | ~$6,100–$7,175 |
| AFAD (8% × $300,000 land) | $24,000 |
| FIRB application fee | $15,100 |
| FHOG | May be eligible (conditions include having lived in Australia for 12 months) |
| Total additional government costs | ~$45,275–$46,275 |
| Deposit required (typically 20–30%) | ~$130,000–$195,000 |
Scenario D: Non-Resident Foreign Buyer
Overseas buyers face the strictest restrictions and the highest costs:
| Additional requirement | Details |
|---|---|
| Eligible property | New dwellings or vacant land only (established dwellings are strictly prohibited) |
| FIRB approval | Must be obtained before signing (or a subject to FIRB clause must be included in the contract) |
| FIRB fee (new dwelling / vacant land ≤ $1M) | $15,100 |
| FIRB fee ($1M–$2M) | $30,300 |
| FIRB fee ($2M–$3M) | $60,600 |
| AFAD (additional transfer duty) | 8% |
| Land tax surcharge (LTFS) | 2% (annually) |
| Vacancy fee | 2× the FIRB application fee (if vacant for more than 183 days in a year) |
| Lending | Some banks do not lend to non-residents; those that do usually require a 30–40% deposit and charge higher interest rates |
| CGT withholding | On sale, the purchaser must withhold 12.5% of the sale price (subject to change after 2025) and remit it to the ATO |
**Example calculation ($650,000 H&L = $300,000 land + $350,000 construction):**
| Item | Amount |
|---|---|
| Transfer duty on the land (standard rates) | ~$6,100–$7,175 |
| AFAD (8% × $300,000) | $24,000 |
| FIRB application fee | $15,100 |
| FHOG | $0 (not applicable) |
| Total additional government costs | ~$45,200–$46,275 |
| Deposit required (30–40%) | ~$195,000–$260,000 |
7. FIRB in Detail (Essential Reading for Foreign Buyers)
7.1 Who needs FIRB approval?
Under Australian law, the following are "foreign persons":
- Individuals who are neither Australian citizens nor Australian permanent residents
- Permanent residents may also be treated as "foreign persons" if they have not resided in Australia for at least 200 days in the preceding 12 months
- Companies or trusts controlled by foreign persons
7.2 FIRB fee schedule (1 July 2025 – 30 June 2026)
| Property value | New Dwelling / Vacant Land | Established Dwelling\* |
|---|---|---|
| ≤ $1,000,000 | $15,100 | $42,300 |
| $1,000,001 – $2,000,000 | $30,300 | $90,900 |
| $2,000,001 – $3,000,000 | $60,600 | $181,800 |
| $3,000,001 – $4,000,000 | $121,100 | $363,400 |
| $4,000,001 – $5,000,000 | $181,700 | $545,100 |
Note: Between April 2025 and March 2027, foreign persons are essentially prohibited from purchasing established dwellings. This column is provided for reference only.
7.3 The FIRB application process
- Determine whether you are a "foreign person"
- Apply before signing the contract (or include a subject to FIRB clause in the contract)
- Submit the FIRB application through the ATO's online portal — complete your personal and visa details — provide details of the property you propose to purchase — pay the application fee
- Await the decision (usually 30–90 days)
- Receive a No Objection Notification — with conditions attached (such as construction deadlines and vacancy requirements)
- Complete the purchase and continue to comply with the FIRB conditions
7.4 Common FIRB conditions
- Vacant land must be built on within a specified period (usually 4 years)
- The dwelling must not be left vacant for more than 183 days per year, otherwise a vacancy fee is payable
- Temporary visa holders must sell within a specified period after their visa expires
- Annual reporting to the ATO on property holdings and occupancy status
8. Queensland Transfer Duty in Detail
8.1 Standard rates (non-first home buyer / no concession)
| Land value | Rate |
|---|---|
| $0 – $75,000 | 1.0% |
| $75,001 – $540,000 | $750 + 3.5% (on the amount above $75,000) |
| $540,001 – $1,000,000 | $17,025 + 4.5% (on the amount above $540,000) |
| > $1,000,000 | $37,725 + 5.75% (on the amount above $1,000,000) |
Special note for H&L: Transfer duty is calculated on the land contract price only and does not include the building contract. This is a significant tax advantage of an H&L compared with purchasing a completed (turnkey) new home.
8.2 First home buyer concessions (from May 2025)
| Property type | Concession |
|---|---|
| New home / vacant land to build on | Fully exempt, no price cap |
| Established home ≤ $710,000 | Fully exempt (maximum concession of $17,350) |
| Established home $710,001 – $800,000 | Partial concession (phases out progressively) |
| Established home > $800,000 | No concession |
8.3 AFAD — Additional Foreign Acquirer Duty
| Item | Details |
|---|---|
| Rate | 8% (increased from 7% from 2024/25) |
| Calculation base | Land value (the same base as standard transfer duty) |
| Who it applies to | All "foreign persons", including temporary visa holders |
| Exemptions | Developers may apply for an exemption where the relevant conditions are met; residents of certain tax treaty countries may be eligible for relief |
9. Summary of Government Assistance for First Home Buyers
| Grant / concession | Amount / details | Eligibility | Deadline |
|---|---|---|---|
| First Home Owner Grant (FHOG) | $30,000 | Total value of the new home below $750,000; applicant aged 18 or over; Australian citizen or PR (holders of certain visas may also be eligible); never previously owned residential property in Australia | Contract signed before 30 June 2026 |
| FHOG (from 1 July 2026) | $15,000 | As above | Ongoing (unless the policy changes again) |
| Full transfer duty exemption (new home / vacant land) | Full exemption from Transfer Duty | First home buyer + new home or vacant land to build on | In effect from 1 May 2025; no end date at present |
| First Home Guarantee (FHBG) | 5% deposit with no LMI | First home buyers who have never owned property | Uncapped places from October 2025 |
| Family Home Guarantee | 2% deposit with no LMI | Single parents | Limited places |
| Regional First Home Buyer Guarantee | 5% deposit with no LMI | Purchasing in a regional area | Limited places |
10. Choosing a Lot
10.1 Lot assessment checklist
| What to check | Why it matters |
|---|---|
| Lot size and shape | Determines which floor plans can be built, the side setbacks and the usable area |
| Orientation | A north-facing living area is ideal; orientation affects natural light, ventilation and energy efficiency |
| Slope | Sloping lots require additional site costs (retaining walls, cut and fill), which can add tens of thousands of dollars |
| Soil Classification | Class M, H and E soils (moderately, highly and extremely reactive) require more expensive footing designs |
| Easements | Affect the buildable area and flexibility for future renovations |
| Covenants (developer restrictions) | Requirements relating to building appearance, fencing, landscaping and so on |
| Bushfire / Flood Overlays | Hazard overlay areas affect insurance costs and building requirements |
| Surrounding amenities | Distance to schools, public transport, shopping centres and parks |
| Future development plans | Check the Council's Planning Scheme maps to see whether higher-density housing, commercial zones or roads are planned nearby |
10.2 Common additional Site Costs
| Cost item | Indicative range | Details |
|---|---|---|
| Rock excavation | $5,000–$30,000+ | Blasting or excavation is required where rock is encountered |
| Cut and fill (site levelling) | $3,000–$15,000+ | The steeper the slope, the higher the cost |
| Retaining walls | $3,000–$20,000+ | Required on sloping or low-lying lots |
| Stormwater drainage | $2,000–$8,000 | Special drainage treatment |
| Soil treatment (termite protection) | $1,500–$3,000 | Mandatory in termite-prone areas of Queensland |
| Piering / deep foundations | $5,000–$25,000+ | Deep piers are required where soil conditions are poor |
Important: The prices in many H&L advertisements do not include full site costs. Before signing, always ask the builder for a detailed site cost report, or make sure these costs are included in the fixed price.
11. Key Legal and Practical Reminders
11.1 Conveyancing
- Engage a solicitor or licensed conveyancer before you sign anything
- They will review the contract terms, conduct a Title Search and handle the electronic settlement (PEXA)
- Queensland has fully adopted eConveyancing; almost all residential transactions are completed through the PEXA platform
- Fees are usually in the range of $1,000–$3,000
11.2 Insurance
| Type of insurance | When it is needed | Details |
|---|---|---|
| Building Insurance | Before construction commences | Covers losses from natural disasters, fire and similar events during construction |
| Home & Contents Insurance | After handover | Standard home insurance |
| QBCC Home Warranty Insurance | Arranged by the builder | Covers situations where the builder is unable to complete the work, or defects arise |
11.3 Building Inspections
Engaging an independent building inspector (approximately $300–$600 per inspection) is recommended at the following stages:
- After the Base / Slab is complete
- After the Frame is complete (the single most important inspection)
- After the Lock-up stage
- PCI (Practical Completion Inspection) — the final inspection; be thorough
11.4 Key timeframes
| Matter | Timeframe |
|---|---|
| Cooling-off period | 5 business days after signing the land contract |
| Finance clause | Approval usually obtained within 14–21 days |
| FIRB application | Submit immediately before or after signing |
| Building Approval | 2–6 weeks after land settlement |
| Construction completion | Usually 6–12 months |
| Defects liability period | 6 months after completion (6 years and 6 months for structural defects) |
12. Summary of Costs
The following is a summary of all the costs that may be involved in purchasing an H&L:
| Cost item | Indicative amount | Notes |
|---|---|---|
| EOI deposit | $1,000–$5,000 | Paid to secure the lot; usually refundable; later credited towards the land deposit |
| Land deposit | Land price × 5–10% (including the EOI) | Paid on signing; the EOI deposit counts towards it |
| Construction deposit | Contract price × 5% | Paid on signing the building contract |
| Transfer Duty | Calculated on the land price on a sliding scale | Exempt for first home buyers purchasing a new home |
| AFAD (foreign buyers) | Land price × 8% | Foreign buyers only |
| FIRB fee | From $15,100 | Foreign buyers only |
| Conveyancing / legal fees | $1,000–$3,000 | Land transfer |
| Loan application / lending fees | $0–$600 | Waived by some lenders |
| LMI (Lenders Mortgage Insurance) | $0–$15,000+ | Payable where the deposit is below 20% and no guarantee applies |
| Building insurance | $1,000–$2,500 per year | Before construction commences |
| Council / government fees | $500–$2,000 | Building approval, water and power connections and so on |
| Site costs (additional site works) | $0–$30,000+ | Depends on the conditions of the lot |
| Upgrades and Variations | $0–$50,000+ | Personal selections |
| Building inspections (each) | $300–$600 | 3–4 inspections recommended |
| Moving and move-in costs | $500–$3,000 | Removalists, window coverings, furniture and so on |
13. Common Risks and Points to Note
| Risk | Details | How to manage it |
|---|---|---|
| Delayed land registration | The developer fails to complete civil works on time and the land cannot settle | Confirm the sunset date in the contract; monitor the developer's reputation and progress |
| Construction overruns | Material shortages, weather or labour shortages cause delays | Specify the construction period and delay compensation (Liquidated Damages) in the contract |
| Hidden site costs | Complex ground conditions discovered after signing require additional expenditure | Have a soil test done before signing; ensure site costs are included in the fixed price |
| Builder insolvency | The builder goes into administration and cannot complete the work | Confirm the builder holds a QBCC licence and valid insurance; choose a large, reputable builder |
| Rising interest rates | Rate movements during construction increase costs | Consider a fixed rate; keep a financial buffer in reserve |
| FIRB refusal | A foreign buyer's application is not approved | Include a Subject to FIRB clause in the contract; consult an immigration / FIRB lawyer in advance |
| Pre-approval expiry | Bank pre-approvals are usually valid for 3–6 months; delayed land registration may cause them to lapse | Renew the pre-approval regularly; communicate with your broker early |
| Variation overspend | Continually adding upgrade options causes the budget to blow out | Finalise all upgrades before signing; strictly limit the number of variations |
14. Useful Contacts and Resources
| Resource | Purpose | Website |
|---|---|---|
| Queensland Revenue Office | Transfer duty calculations, FHOG applications, AFAD information | qro.qld.gov.au |
| FIRB / ATO | Foreign investment approvals | foreigninvestment.gov.au |
| QBCC | Checking builder licences, complaints, home warranty | qbcc.qld.gov.au |
| Housing Australia (FHBG) | First Home Guarantee scheme | housingaustralia.gov.au |
| PEXA | Electronic conveyancing platform | pexa.com.au |
| Queensland Government | First home buyer guide | qld.gov.au/housing |
Tags: Buying in Queensland · House and Land Package · Australian Property Buying Guide · First Home Owner Grant · Queensland Transfer Duty · House and Land Packages · The Australian Property Buying Process · Brisbane Property
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