Land or House – Which One Should You Buy First?

Standing on a vacant block of land and visualising your future home can be an emotionally motivating feeling - one that can tempt you to start the process of building your dream home by purchasing said block of land. This can be even more tempting if you've spent time researching the right location, and this block is perfectly suited to your needs when it comes to proximity to school zones, public transport and amenities. 

Deciding whether it's better to buy land or a house first is a common dilemma that those building for the first time often encounter when planning their brand new house. Each option comes with its own advantages and challenges, but making the right choice for your and your family can have a significant impact on your property investment and the building process. In this article, we explore the pros and cons of buying land first, why choosing your house first might be a wiser choice and how house and land packages can simplify the entire process - especially when you build with Carlisle Homes. 

Planning your dream home: Buying land vs purchasing a house design first

As Taylah White, Carlisle Homes Group House and Land Manager, explains, "Buying a block of land without fully understanding what can be built on it can lead to compromises. So often, customers come to us with their land and the home they've chosen, only to learn that it can’t be built on that block,” she says. Ensuring your home design matches the land to build on is key to avoiding potential pitfalls.

The challenges of buying land to build on before you've decided on your home

Purchasing land for your new home first may uncover a few challenges that can impact the value of your house or the overall home building process. Below we outline some of the things you should be aware of when purchasing vacant land before building a house, and why deciding on your dream house first may be the better option. 

Block restrictions

Not all blocks of land are the same, with many not having the right dimensions or gradient for you to build your home on. "One of the simple mistakes people make is to buy a piece of land that doesn’t have sufficient frontage or depth to accommodate their chosen home design, so their ability to construct a home suited to their vision is limited," explains White. 

Another is failing to understand the impact that fall and gradient has on the building process. “A block of land is very rarely just flat,” White says. “Any slope or gradient can have implications on the home you’re able to build.”

Ensuring the land is ready to build on and aligns with your plans is critical to avoiding any unnecessary costs or delays.

Regulations and Permits

If your dream home has two storeys, the process can present even more challenges. Regulations around overshadowing and overlooking could prevent you from ‘building up,’ and your double-storey design may be similarly compromised if your estate includes 3D building envelopes, which are sometimes enforced by developers to achieve an attractive streetscape, in part by restricting the height of each house. In some cases, you’ll have little choice but to select a different home design that works on your block of land – or sell and start again.

Financial Implications

Other situations may have financial implications. For example, if your block is too close to a major freeway or powerline easement, it can affect how much finance banks are willing to offer, not to mention the resale value of your house.

When considering building a new home for investment purposes, understanding restrictions as well as in a location where the value of land appreciates, is essential. Failing to meet council regulations can result in compromises to your custom home design, potentially affecting the future value of your house and its appeal as an investment property and thus, your long-term investment goals. 

So, there’s a lot of research to be done when buying land and choosing to decide on your house later. Of course, if you feel confident enough to proceed, Carlisle Homes can assist at all stages of the process, from advising on alternative house designs to offering fixed site costs to help manage your budget. But, as White points out, “We just can’t change your block of land after it’s been purchased.”

Why choosing your house first makes sense

Most of us tend to picture our perfect home, but not many think about our perfect block of land – and for good reason. For most, the house is what creates the lifestyle you want – whether it’s one or two storeys, the number of bedrooms and bathrooms, or having a beautiful kitchen and dining space if you love to cook and entertain.

Once you know what your personal preferences are, you can design your home with a builder like Carlisle, and then choose a block of land in your desired location. 

Doing it in this order puts you in a good position to achieve your desired outcome without any compromises. However, the process of finding the right block can still be time-consuming and frustrating. If this seems daunting, there’s one other approach you can take that eliminates risk and worry, and is guaranteed to deliver a fantastic result, and that is purchasing a house and land package.

Why house and land packages are a better option

Given the complexity of choosing your dream home design and matching it to a suitable block, it makes sense to get help from the experts who do it day in, day out. These packages streamline the building process by pairing the ideal home design with a suitable block of land, removing the guesswork and ensuring a seamless match between land and home. 

Buying a house and land package with Carlisle Homes opens up additional benefits, such as the Land Connect service, which offers customers access to exclusive land in Melbourne's best new estate locations, carefully selected for minimal fall and maximum suitability for building your dream home.

“Carlisle has successful and longstanding relationships with key developers, giving us access to land exclusively for our customers across Melbourne,” White explains. “We hand-select blocks with the least amount of fall, in the very best locations. So that means you can work with Carlisle Homes to choose your perfect home design and then let them find the perfect block to build it on, saving you from stress and uncertainty so you really can have the best home in the best street," White says.

Advantages and financial benefits of buying a new house and land package

• Tailored solutions: Your home design and block of land are matched in terms of best suitability so that you are ready to build straight away.
• Prime locations: With Carlisle, you gain access to exclusive blocks of land through our Land Connect service and our long-standing developer partnerships.
• Stress-free process: Eliminate any uncertainty and such a strong focus on buying land and build a house you've been dreaming about for years. 
• Cost certainty: Avoid any unexpected additional costs with fixed site costs and transparent pricing, ensuring your budget stays on track. 
• Stamp duty savings: With a house and land package, you only pay stamp duty on the value of the land, not the completed home, providing significant cost savings during the purchasing process. 

Already have land? 

If you already have your own block, we can build your brand new home on your land.

And we can offer you a fixed price package* that includes site costs, council requirements and developer requirements, so there are no hidden surprises. Browse the map below to see if we can offer fixed pricing in your area.

Are you a first home buyer? 

If you’re a first home buyer, a house and land package is an excellent way to simplify the process of securing your first property. These packages not only streamline the journey to buy a home but also offer financial advantages, such as access to stamp duty concessions, where you pay stamp duty only on the value of the land. By choosing to construct a home through Carlisle Homes, you can avoid many of the challenges associated with buying an existing property and benefit from lower property taxes on a new build. Instead you can build a home from scratch - making a sound investment option as a first home buyer. 

Carlisle’s Easy Living Series is specifically designed with first home buyers in mind, offering affordable fixed-price packages that take the guesswork out of building. With a variety of expertly curated designs to choose from, you can choose to build a home that fits your budget and lifestyle - and still customise your home the way you'd like it. Additionally, Carlisle provides valuable investment tips and guidance to help you make an informed decision, ensuring your new home is both a smart investment and a space you’ll love.

Making an informed choice - house or land first? Key points to remember

Deciding whether to buy a plot of land and then choosing a home to suit, or deciding to choose a house before you buy the land is entirely based on your personal preferences - but from our experience, it's best to decide on your home design and then invest in land. 

For more information house and land packages, jump on our website or contact us on 1300 328 045. And of course, the best place to get ideas for your dream home is at one of our display homes, which you can find at locations right across Melbourne.