Deciding what to buy
Vacant land and house-and-land packages
A genuinely different purchase from a completed property — site costs, a separate building contract, and a construction timeline measured in months to years.
- A house-and-land purchase involves two contracts — land and building — each with its own risks.
- Site costs are commonly quoted as an allowance and can run over once the actual site is assessed.
- Utility connections, driveways and landscaping are often excluded from the headline build price.
- Estate design guidelines and covenants can constrain what you're actually allowed to build.
- Builder insolvency during construction is a real risk — Domestic Building Insurance protects you if it happens.
A genuinely different purchase
Buying vacant land or a house-and-land package involves risks a completed-property purchase doesn't: a separate building contract (with its own price, inclusions and timeline), site costs that only become clear once soil and slope are assessed, and a settlement and construction timeline measured in months to years rather than weeks.
Costs beyond the land and build price
Site costs (cutting, filling, rock removal, unusual soil conditions) are commonly quoted as an allowance in a house-and-land contract and can run well over that allowance once the actual site is assessed. Utility connections, driveway and landscaping are often excluded from the headline build price. If you need temporary accommodation during construction, that's a real cost too — see the building-a-home financing guide in the Prepare Financially hub.
Design guidelines and estate covenants
Many new estates carry design guidelines or covenants controlling materials, colours, fencing and even landscaping — separate from and in addition to council planning controls. Confirm these before assuming a build design will actually be approved.
If your builder becomes insolvent
Builder insolvency during construction is a real risk, not a hypothetical one — the Australian construction sector has seen elevated insolvency rates in recent years. Domestic Building Insurance exists specifically to protect you if this happens (Consumer Affairs Victoria, verified 31 Jul 2026) — confirm the builder holds current cover before signing, rather than assuming it's automatic.
Practical checklist
Before signing a land or house-and-land contract
- Get a genuine site assessment before relying on a standard site-cost allowance
- Get a complete cost breakdown including connections, driveway and landscaping
- Check the estate's design guidelines and covenants against your intended build
- Confirm the builder holds current Domestic Building Insurance before signing
- Confirm construction finance and any temporary accommodation costs for the build period
Relevant Delora tool
Questions for a professional
- What site conditions could push costs beyond the standard site-cost allowance on this specific block?
Official resources
Sources and methodology
- Building problems after property settlement — Consumer Affairs Victoria (retrieved 31 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.