Signed the contract? Congratulations! This is a huge step in your journey towards homeownership. But if you’re wondering what happens next, the process doesn’t stop once you’ve signed the contract for your house & land package. Here’s your step-by-step guide to everything that happens next, so it’s seamless from when you sign the contract to picking up your keys.
Two deposits, one dream home
With a house and land package, you typically pay two separate deposits after the contract has been signed. Here’s how it works:
- Land deposit: this ranges from 5% to 10% of the land price, payable upon signing the land contract.
- Builder deposit: this is usually a smaller flat fee or percentage, required to lock in the building agreement and start your design.
Cooling-off period
Each contract comes with its own cooling-off period. For the land contract, Victorian buyers get three business days to change their mind. In terms of the building contract, it’s five business days from when you receive your signed copy. Looking for advice on how to keep track of the cooling-off period? It’s worth chatting to your conveyancer or our team for more assistance.
Lock in your finance
If your offer was conditional, now’s the time to make it official. Your lender will need all your financial information before signing off for good: think ID, payslips and bank statements. Once the outstanding conditions are met, the loan contract will be issued and your lender will release the funds in stages as your home gets built. Getting your finances in order early keeps everything, both contracts and your builder’s schedule, moving smoothly with fewer surprises along the way.
Savings worth claiming
Buying a house and land package in Victoria comes with some huge benefits. Because you’re purchasing land and building separately, stamp duty is calculated on the land value alone, not the full package price – a solid saving compared to buying an equivalent established home.
Good news for first home buyers, there’s financial support available! In Victoria, if you’re an eligible first home buyer with land valued at $600,000 or less for house and land purchases, you won’t pay stamp duty at all, with a tapered concession up to $750,000. Also, buyers building a new home valued at $750,000 or less can access $10,000 in the First Home Owner Grant. Eligibility criteria vary across each scheme, so it’s worth checking what you can claim with your conveyancer or broker.
Settling on your land
Settlement is the final legal step in the purchase process, where the balance of the purchase funds is paid and ownership of the land transfers to you. This is coordinated between Kala’s solicitors and your conveyancer.
Whether your land is titled, near titled or off the plan impacts how quickly you can settle. Titled and near-titled land helps you move into your home sooner because there’s less time waiting on council approval and it’s officially registered with the state. If you’re interested in learning more about the benefits of near titled land, we’ve got just the blog for you.
We’re here to help
Once everything is settled, the next chapter begins. From here, it’s over to your builder to bring your new home to life and hand over the keys after construction. For buyers at Kala, this is where the fun begins! With a future waterway, playground and park taking shape across our community, there’s plenty to look forward to once you’ve settled in.
Whether you’re looking for your first home, to upsize or secure a new investment opportunity, we’re ready to welcome you in Pakenham East. If you have any questions about the government benefits available or the overall settlement process, our dedicated team at Kala is here to help. Contact us today.