5 Red Flags to Avoid When Buying a House and Land Package

Buying a house and land package can be an exciting and cost-effective way to build your dream home. With the convenience of bundling land purchase and home construction into a single deal, these packages have become increasingly popular—especially among first-home buyers and investors. However, as appealing as they may seem, house and land packages can also come with hidden pitfalls that could cost you time, money, and peace of mind.

Whether you’re a first-time buyer or a seasoned investor, here are five red flags you should watch out for before signing on the dotted line.

1. Too-Good-To-Be-True Prices

One of the most common traps in the house and land market is the lure of an ultra-low advertised price. While it may seem like an amazing deal, beware—these prices often don’t reflect the true cost of building your home.

What to Watch For:

• The “starting from” price often includes only the basics. 
• Important features like driveways, landscaping, fencing, floor coverings, lighting, and even site preparation (leveling, retaining walls) might not be included. 
• Builders may charge premium fees for upgrades or modifications. 

Tip:

Always request a detailed inclusions list and a fixed-price contract to understand what’s really covered—and what’s not.

2. Unregistered Land or Delayed Titles

Buying a house and land package often means purchasing in a new estate where the land is still being developed. If the land is unregistered, it means the legal title has not been issued yet—and that can create serious delays.

Why It’s a Problem:

• You can’t start building until the land title is registered. 
• Delays in land registration can affect your financing approval and your budget. 
• It can result in months (or even years) of waiting without any progress. 

Tip:

Ask the developer for a realistic timeline on land registration and check with your legal advisor to understand the contract terms related to delays.

3. Shady or Inexperienced Builders

Not all builders are created equal. Some are reputable, licensed, and experienced—others may be inexperienced, under-resourced, or financially unstable.

Red Flags Include:

• Lack of reviews or bad online ratings. 
• No clear portfolio of past projects. 
• Vague answers to questions about timelines, costs, or materials. 

Tip:

Do your research. Look for builders with solid reputations, verified testimonials, and memberships in industry associations. Also, check if they offer a structural warranty or if their insurance is up to date.

4. Restrictive Developer Covenants

While some developer guidelines (also known as covenants) are in place to maintain uniformity and protect property values, overly strict or unreasonable covenants can limit your creative and financial freedom.

Examples of Restrictive Covenants:

• Mandatory use of specific materials or color palettes. 
• Set-back requirements that limit house size or position. 
• Bans on certain types of fencing, solar panels, or landscaping. 

Tip:

Always request a copy of the developer’s design guidelines and go through them with a building consultant or architect. Make sure they align with your vision—and budget.

5. Hidden Fees and Ongoing Costs

Even with a fixed-price contract, many buyers are caught off guard by hidden or unexpected expenses that crop up during or after construction.

What to Watch For:

• Connection fees for utilities like electricity, gas, water, or NBN. 
• Site costs such as soil testing, excavation, or bushfire/fire zoning compliance. 
• Council contributions, stamp duty (on land), or unexpected lender fees. 

Tip:

Get a full breakdown of all costs—not just the construction and land price. Ask your builder and developer for transparency, and consider hiring an independent quantity surveyor or construction consultant if you’re unsure.

Final Thoughts

A house and land package can be a fantastic opportunity—but only if you approach it with eyes wide open. Understanding these red flags and doing your due diligence will help you make an informed decision that secures your investment and supports your lifestyle goals.

Here’s a quick recap:

• Don’t get hooked by low sticker prices. 
• Avoid unregistered or delayed land unless you’re willing to wait. 
• Vet your builder thoroughly. 
• Read the fine print on developer covenants. 
• Know all your costs—upfront and ongoing. 

Buying property is one of the biggest decisions you’ll ever make. Take your time, ask lots of questions, and seek professional advice when needed. Your dream home is worth getting right.

Secure Your Dream Home in Oran Park – Contact Royal Constructions Today!

Explore affordable house and land packages in Oran Park with Royal Constructions. Quality builds, flexible designs, and expert service. Enquire now to start your journey home!