Is A House And Land Package Better Than Building A Home?

House And Land Packages

Owning a home is an exciting venture. And today, there are various ways for you to become a homeowner. For instance, you can build a house from scratch or opt for a home and land package. And to get the most out of this significant investment, it’s essential to know each option’s pros and cons to help you narrow down to the best approach to acquiring your new home.

This article explores insights that can help you determine which course of action is better. Read on to learn more.

What Is A House And Land Package?

Marketing and real estate agents usually offer a house and land package from new housing estates developed by property developers. Often, such properties are built alongside basic infrastructures such as utilities, water and sewage, and roads. Likewise, it’s being advertised at a fixed price.

Depending on the project phase, some house and land packages may be already constructed, while some are still to be developed by the developer. To give you a better overview of how house and land packages work, here’s a quick list of their advantages and disadvantages:


  • Less Complicated Process

    Essentially, with a house and land package, the home’s structure is already included in what you’ll be availing yourself of. With this, you won’t have to think about hiring reputable professionals in the field, such as architects, designers, and home builders to work with. You wouldn’t need to burden yourself with any design and construction issues considering you won’t generally deal with such unless you’re planning to have some home renovations done.

  • Less Costly Than Building A Home

    Opting for a house and land package can be more cost-effective than building a home from scratch. For one, most packages come at a fixed price, so you can be assured there are no unexpected costs down the road unless you’re planning for some interior decoration or renovation.

  • No Need For Land Servicing

    In a nutshell, you can avoid the costs of servicing your property in terms of basic utilities. Since you’re working with a real estate developer, they’ll coordinate with utility providers to service your property and provide amenities such as water and electricity to your home.


  • Far Location:
    New houses and land packages are often built in outer suburban places. These areas can be far from places of work and can have limited public transport.
  • Offers Low Returns:

    Deciding to sell the house and land usually located in an outer suburban area can have a value that often increases slower. The reason is due to proximity to central business districts.

  • Lack Of Options:

    Although some houses and land packages can offer flexibility in tweaking the house design to incorporate your requests, the design is generally fixed, and they can’t give you the opportunity to develop your home from the very beginning.

What Is Home Building?

Building a home means you or your licensed general contractor will construct the home from scratch instead of purchasing an already built house and land package. Here, you’re responsible for finding the location for the house, the architect who’ll design the property, and the builders who’ll construct the home.

Below are some of the benefits and drawbacks when opting for this approach.


  • You Can Choose The Land Location
    As mentioned, acquiring the land wherein you’ll build your home is part of your responsibility. This can go a long way in allowing you to choose where you want your property to be. You can opt for land that’s located in a greenfield or land that’s near places of public transport and job opportunities.
  • You Can Customize The Home Based On Your Individual Needs

    It may look like an obvious benefit, but the ability to design your home according to your lifestyle, needs, and wants, can be a way to get the most in building a house. And whether you’re building a home for your loved ones, your future children, or just yourself, each choice, whether design or the space’s function, can be based on your preference and requirement.

  • You Can Avoid Home Remodeling

    A custom-built home prevents you from having home remodeling, additions, and alterations that can lead you to save money. Since you’ll be building from scratch, you can already incorporate everything on your wish list when designing your new home.


  • Land Costs

    Land value is generally expensive. More so, if you purchase a property that’s not yet serviced, you’ll have to pay for the servicing costs by adding electricity, road access, and internet connection for the location.

  • Design and Construction Costs

    While this option offers more flexibility, one of its notable cons is it may require significant expenses from your end. For one, you’ll have to seek and hire licensed design professionals such as architects and interior designers to finalize your home’s plans and design. But aside from that, you’ll also pay the construction expenses, which include labor and materials costs. This can cost you money as time goes by.

  • Completion Time

    Building your home from scratch may take a long time, from finalizing the design and construction drawings to the construction phase. More so, in the timeline, you’d also have to factor in possible delays during the construction. But with a house and land package, the developer usually has a fixed timeline they can commit.

Which Is Better?

Essentially, there’s no right or wrong in deciding whether to purchase a house and land package or build your home from scratch. Each option has disadvantages and advantages, and it depends on your preferences to determine which option benefits you the most.

But as a starting point, opt for a house and land package if you want a convenient and cost-effective method of home acquisition. On the other hand, building a home is ideal if you want more freedom to decide on your home’s location and design.

Overall, consider the information above as your guide.