Australian Property | How to Buy a House and Land Package in Australia (Updated 2023)

1. Reserve a property

Once buyers have selected a piece of land and a house they are happy with, they pay a holding deposit (usually A$1,000 – A$5,000), which allows the agent to apply to the developer to reserve the land. If the buyer changes their mind before the contract is signed, this holding deposit is refunded in full; if the contract is signed, the holding deposit forms part of the deposit. For overseas buyers, Aobo Realty assesses financial capacity in advance to determine the type and price range of house they can purchase.

2. Sign the land contract and building contract
The developer/builder provides the land and building contracts to the buyer or the buyer's solicitor. The buyer signs after consulting their own solicitor and fully understanding the contracts; at the same time, the developer/builder signs the relevant contracts, and the purchase contracts then come into effect.

3. Apply for FIRB approval
Overseas buyers submit a purchase application to Australia's Foreign Investment Review Board (FIRB). This step applies only to overseas buyers. From July 2023, FIRB applications use the latest system, and this process is generally completed with the assistance of the buyer's solicitor. For details, see Living in Australia | Updated Foreign Investment Review Board (FIRB) Fees for the 2023–2024 Financial Year

4. Pay land and building deposit
Within the timeframe specified in the contract (usually 7 or 14 calendar days), the buyer pays 5% – 10% of the land amount as a deposit, which must be paid into the developer's solicitor's trust account. At the same time, a 5% building deposit is paid into the builder's designated account. Overseas clients requiring finance can borrow up to 80% of the combined value of the land and building contracts, and Aobo Realty provides assistance with loan applications.

5. Land settlement
After the land title has been registered, the land settlement process takes place. The buyer pays the balance of the land amount and the land stamp duty, at which point the land title is transferred into the buyer's name. This process is completed independently by the developer's and the buyer's solicitors.

6. Apply for building permit
Once the builder has received confirmation that the land transfer to the buyer has been successful, they need to arrange the relevant building approval procedures and carry out preparation work. This process generally takes around one month.

7. Start building and pay by installment
The house construction process in Australia is mainly divided into five stages: slab, frame, lock-up, fixing and complete. The building contract sets out in detail the amount payable at the end of each stage. At the end of each stage, the builder carries out an inspection for that stage and issues the corresponding invoice; once the inspection is passed, the buyer pays the builder the amount for that stage in accordance with the contract.

8. Final inspection
Once the house is complete, the developer invites the buyer or the buyer's representative to inspect it. Any issues identified during the inspection are recorded, and the developer will then arrange for them to be rectified. If the buyer requires a professional building inspector to provide a formal inspection report, Aobo Realty can assist in arranging this. If any issues arise within three months of settlement being completed, the developer is also responsible for prompt repairs; under Queensland property law, the structural warranty period for a property is 6 years.

9. House handover
On the day of settlement, the buyer pays the balance of the purchase price to the developer, and the buyer can then move into the new house. For investors who will not be living in the property themselves, Aobo Realty can arrange property management, including leasing, maintenance and more.