Question 1

Why do buyers choose off-the-plan residences over established property?

Accepted Answer

Buying off-the-plan locks in today's purchase price with an agreed deposit, giving you time for capital growth without mortgage repayments while the building is constructed (timelines vary by scale, from 12 months for boutique projects to 24 months or more for major towers).

You move into a brand new home built to current architectural standards, backed by statutory builder warranties, high energy efficiency, and potential state stamp duty savings.

Question 2

Is the purchase price fixed, or can the developer increase it during construction?

Accepted Answer

Your contract price is locked upon unconditional exchange. The developer cannot increase the purchase price if building or labour costs rise during construction.

Unless you formally request a bespoke layout change or interior finish upgrade, your agreed price remains fixed through to settlement.

Question 3

How do I ensure the finished apartment matches the quality shown in the display suite?

Accepted Answer

A display suite is a visual benchmark, but your legally binding contract is what governs the final product. Every contract includes a detailed Schedule of Finishes that specifies the exact brands, models, and materials for appliances, joinery, and flooring.

Display suites typically feature subtle signage indicating optional upgrades (such as wine fridges or motorised blinds). We always review your inclusion schedule against display suite specifications so you know exactly what is included as standard.

Question 4

How are construction quality and building standards enforced?

Accepted Answer

New developments are constructed in strict compliance with the National Construction Code and state-specific frameworks, such as the Better Apartments Design Standards in Victoria or equivalent planning guidelines in Queensland and New South Wales.

Independent certifiers, structural engineers, and fire authorities inspect the site at each major milestone before a formal Certificate of Occupancy can be granted.

Question 5

What warranties protect me against building defects after completion?

Accepted Answer

You are protected by two layers of contractual and statutory warranty.

First, your contract includes a defect liability period (typically 6 to 12 months) where the builder is legally required to rectify minor settlement adjustments or cosmetic blemishes. Second, statutory structural warranties apply under state building acts, covering major structural elements for up to 6 or 6.5 years from completion.

Question 6

What environmental and sustainability features are built into new developments?

Accepted Answer

Modern off-the-plan developments must meet strict National Construction Code energy efficiency standards, typically achieving a 7-star NatHERS rating or higher.

In practice, quality projects incorporate acoustic double glazing, energy-efficient heat pump systems, solar PV infrastructure, and EV-charging provisions. These features reduce environmental impact while materially lowering quarterly power bills and ongoing body corporate running costs.

Question 7

Are car parking spaces, storage cages, and EV charging included on title?

Accepted Answer

Yes. In most developments, car parking spaces and basement storage cages are allocated directly on title or designated via exclusive-use strata by-laws.

Contemporary developments also increasingly integrate EV-ready cabling or active chargers to specific bays. Your exact allocation and basement location are clearly marked on the draft plan of subdivision attached to your contract before you commit.

Question 8

Can another building be constructed in front of my apartment and block my views?

Accepted Answer

No developer can contractually guarantee that a view will never change unless they own the adjoining air rights or the outlook is protected by permanent public parkland or beachfront reserve.

Before recommending an off-the-plan project, our team reviews surrounding council zoning, allowable building heights, and submitted development applications for adjacent parcels. We help you distinguish between views protected by permanent planning overlays and aspects exposed to future redevelopment.

Question 9

How is acoustic privacy managed between neighbouring apartments?

Accepted Answer

Modern engineering standards for multi-residential towers require advanced acoustic zoning between homes.

Builders install multi-layered acoustic wall assemblies, insulated ceiling plenums, double-glazed windows, and acoustic underlay beneath timber flooring. This ensures street noise and sound transfer between shared walls are kept to a whisper, providing true sanctuary.

Question 10

Are short-term holiday rentals like Airbnb permitted in new apartment buildings?

Accepted Answer

This depends strictly on the building's body corporate by-laws and local council zoning.

Many premier owner-occupier developments implement strict minimum lease periods (such as 3 to 6 months) to preserve residential security and community quiet. Conversely, certain resort-style or mixed-use towers permit managed short-stay accommodation. We clarify the exact strata by-laws for each project before you proceed.

Question 11

How does electric vehicle (EV) charging billing work in an apartment basement?

Accepted Answer

Contemporary developments utilise smart, dynamic load-balancing systems linked to dedicated sub-meters. Electricity consumed by your private car charger is billed directly to your individual utility account, not absorbed by the building's common area levies.

In developments where private chargers are optional additions, infrastructure pathways are typically pre-cabled to allow plug-and-play installation when you require it.

Question 12

How do I secure an off-the-plan property?

Accepted Answer

You start by submitting a signed Expression of Interest (EOI) alongside a nominal refundable holding deposit (for example, $2,000 to $5,000, though this varies depending on the specific project tier).

This takes the property off the market while contracts are prepared. You then have time for your conveyancer to review terms. The balance of your agreed deposit is payable upon unconditional exchange of contracts, held securely in an independent statutory legal trust account.

Question 13

Does an off-the-plan contract include a cooling-off period?

Accepted Answer

Statutory cooling-off periods apply in most states: 3 business days in Victoria, and 5 business days in Queensland and New South Wales.

If you elect to withdraw during this statutory window, a minor government termination fee (usually 0.2% to 0.25% of the purchase price) applies. Cooling-off rights do not apply if purchasing at auction or within a designated pre- or post-auction timeframe. Always confirm exact terms with your conveyancer before signing.

Question 14

Can I customise the floorplan, colour scheme, or interior finishes?

Accepted Answer

Yes, provided you purchase early in the construction programme.

Developers typically offer a choice between curated light and dark colour schemes, with options to upgrade appliances or bespoke joinery. Structural floorplan changes or room amalgamations require developer and engineering sign-off, and must be locked in before the construction cut-off dates.

Question 15

How am I kept informed during the construction process?

Accepted Answer

Throughout the build, we provide regular milestone reports featuring site photography, construction progress updates, and revised completion estimates.

As the tower approaches structural completion and internal fit-out, on-site walkthroughs or viewing days may be scheduled, subject to builder site safety and WHS regulations.

Question 16

What happens if a developer needs to substitute specified materials or finishes?

Accepted Answer

Standard off-the-plan contracts permit developers to substitute finishes or appliances only if an original product becomes discontinued or unavailable.

Contractually, any replacement must be of equivalent or superior quality, appearance, and performance. Developers cannot downgrade finishes, and contracts set strict limits on allowable dimensional changes to floorplans.

Question 17

What protections exist around sunset clauses in off-the-plan contracts?

Accepted Answer

A sunset clause sets a realistic final date by which the developer must register the building.

Historically, some developers abused sunset dates in rising markets to cancel contracts and resell at higher prices. Today, consumer protection laws in Queensland, New South Wales, and Victoria make this illegal. A developer cannot terminate your contract under a sunset clause without your written consent or a formal Supreme Court order proving genuine hardship.

Question 18

What happens if construction takes longer than the estimated completion date?

Accepted Answer

Building large-scale residential projects involves variables like inclement weather or supply chain lead times. The completion date on marketing material is an estimate, not a contractual deadline.

Your contract provides for certified extensions of time for weather or legitimate construction delays. However, the developer cannot extend past the statutory sunset date without risk of contract rescission. We monitor construction pace closely to keep you updated on realistic settlement windows.

Question 19

Can I assign or re-sell my off-the-plan contract before settlement?

Accepted Answer

Reassigning a contract (known as nomination or sub-sale) is legally possible in certain circumstances, but depends on contract terms and state revenue rules.

Some states, such as Victoria, impose strict sub-sale stamp duty if a property is on-sold at a profit before settlement. If your life circumstances change, we recommend discussing nomination options with your conveyancer and our team early to navigate developer consent and tax implications smoothly.

Question 20

Can I inspect my apartment before settlement to check for defects?

Accepted Answer

Yes. Approximately one to two weeks prior to settlement, you are invited to conduct a formal pre-settlement inspection.

Take your time to test appliances, check water pressure, examine stone joins, and inspect paint finishes. Any minor cosmetic blemishes or adjustments are logged on a formal defect notice for the builder to rectify under their defect liability obligations.

Question 21

Can I hold back money at settlement if minor cosmetic defects are still being fixed?

Accepted Answer

Under standard Australian off-the-plan contracts, buyers cannot unilaterally withhold settlement funds for minor cosmetic blemishes once the Certificate of Occupancy and title registration are issued.

Cosmetic touch-ups are contractually resolved under the builder's defects liability period (typically 6 to 12 months post-settlement). However, if an apartment has major uncompleted works that render it uninhabitable, your conveyancer can issue formal legal notices before settlement proceeds.

Question 22

What happens on settlement day, and how do I receive my keys?

Accepted Answer

Once the plan of subdivision is registered and the Certificate of Occupancy is issued, formal notice to settle is served through your conveyancer.

On settlement day, your lender and legal team transfer the balance of funds electronically via PEXA. As soon as funds clear, you or your appointed leasing manager collect keys, electronic access fobs, and an owner handover pack containing all appliance manuals and warranties.

Question 23

What determines my borrowing capacity when buying off-the-plan?

Accepted Answer

Lenders assess your income, regular living expenses, existing debts, and credit history, applying a statutory interest rate serviceability buffer.

Because final loan approval occurs closer to completion, our affiliated mortgage brokers help monitor your borrowing power throughout the build to ensure you are fully prepared when settlement arrives.

Question 24

How much deposit do I need to secure an off-the-plan apartment?

Accepted Answer

An agreed deposit is required upon unconditional contract exchange, held securely in an independent statutory trust account until settlement. Terms vary by development, and developers frequently offer lower deposit structures or promotional incentives.

For your final mortgage at completion, lenders typically prefer a 20% deposit to avoid Lenders Mortgage Insurance (LMI), although competitive loan products are available with smaller deposits or family guarantee structures.

Question 25

Can I use a deposit bond or bank guarantee instead of cash?

Accepted Answer

Many developers accept deposit bonds or bank guarantees in lieu of a cash deposit, subject to developer and vendor solicitor approval.

This is especially popular for downsizers whose equity is tied up in their existing home, or investors who prefer to keep their capital earning interest until completion.

Question 26

What happens to my deposit if a developer or builder collapses before the project starts?

Accepted Answer

Your deposit is protected by statutory legal trust accounts governed by state conveyancing legislation. The developer does not hold or spend your cash during planning.

Funds are held independently in the vendor solicitor's statutory trust account or backed by a deposit bond. If the developer fails to achieve construction funding milestones or rescinds under a sunset clause, 100% of your deposit is refunded.

Question 27

Are there stamp duty concessions available for off-the-plan apartments?

Accepted Answer

Yes, several Australian states offer dedicated duty concessions or exemptions for new and off-the-plan dwellings.

For example, Victoria provides off-the-plan duty concessions where transfer duty is calculated primarily on the land value prior to construction, and Queensland offers generous first-home buyer exemptions. Concessions depend on purchase price thresholds and whether you are buying as an owner-occupier or investor. We recommend confirming current state thresholds with your conveyancer.

Question 28

Can I use the First Home Owner Grant (FHOG) for an off-the-plan purchase?

Accepted Answer

Yes, eligible first-home buyers purchasing a newly built dwelling may qualify for state-funded First Home Owner Grants.

Grant amounts and property price caps vary between Queensland, New South Wales, and Victoria. Because the grant is disbursed at legal settlement, it is typically applied towards your final balance of funds with your lender.

Question 29

When do I need to finalise my mortgage for an off-the-plan apartment?

Accepted Answer

A bank pre-approval typically lasts 90 days, which means formal unconditional loan approval cannot be finalised years in advance.

You should maintain your credit profile during the build, then engage your mortgage broker approximately three to four months before expected completion. This gives ample time to review current lender rates, order bank valuations, and issue formal loan documents well ahead of settlement day.

Question 30

Should I choose a fixed or variable interest rate for my mortgage?

Accepted Answer

Fixed rates lock in your repayments for a set term, providing certainty against rate rises, while variable rates offer flexibility with offset accounts and redraw facilities.

Many buyers choose a split loan, fixing a portion for repayment peace of mind while keeping the remainder variable to benefit from offset savings. Your mortgage broker can structure this to suit your lifestyle.

Question 31

What happens if a bank valuation comes in lower than the contract price at settlement?

Accepted Answer

Bank valuations are typically ordered several weeks prior to completion (often between 30 and 60 days out, depending on your lender's policies and site access). If an independent valuer values the apartment below contract price, your lender calculates their loan percentage against the lower figure.

To prepare for this, we recommend maintaining an equity or cash buffer rather than borrowing to your maximum limit. In the rare event of a shortfall, working with a specialist mortgage broker who can order an alternative valuation through a different lender panel is the most effective solution.

Question 32

When is the remaining purchase balance due?

Accepted Answer

The remaining purchase balance is not due until the development reaches physical completion and settlement is formally called.

This extended window (often 12 to 24 months, depending on the height and scale of the building) gives you ample time to save additional capital, monitor lending rates, or prepare your current property for sale without paying mortgage interest along the way.

Question 33

How are body corporate levies calculated and what do they cover?

Accepted Answer

Estimated first-year body corporate levies are detailed in the disclosure documents before you sign.

Levies fund two accounts: the Administrative Fund, which pays for everyday running expenses like building insurance, cleaning, lift servicing, and landscaping, and the Sinking or Capital Works Fund, which builds a cash reserve for long-term structural maintenance and future repainting.

Question 34

What is an embedded utility network and how does it affect me?

Accepted Answer

An embedded network is a private utility arrangement within a building that bulk-purchases electricity, hot water, or internet from providers to secure lower commercial rates.

Savings are passed on to residents through reduced utility bills. All embedded networks in Australia are regulated by the Australian Energy Regulator, ensuring consumer protections and transparent billing.

Question 35

When should I sell my family home when buying off-the-plan?

Accepted Answer

Many downsizers prefer to sell their family home in the months leading up to completion (often 3 to 6 months prior, depending on local market conditions), allowing for a relaxed or simultaneous settlement with zero interim moves.

Alternatively, if you prefer complete financial certainty upfront, you can sell earlier, invest the equity, or negotiate an extended settlement or rent-back period on your current home.

Question 36

How does the Downsizer Superannuation Contribution scheme work?

Accepted Answer

Eligible Australians aged 55 or older can contribute up to $300,000 each (or $600,000 for a couple) into their superannuation from the proceeds of selling their primary family home.

The home must have been owned for at least 10 years, and the contribution does not count towards standard non-concessional caps. Always consult your financial planner or tax accountant regarding current ATO rules.

Question 37

Can I bring my pet to a new apartment?

Accepted Answer

Yes. In Queensland, Victoria, and New South Wales, strata legislation has reformed so that bodies corporate cannot unreasonably prohibit domestic pets.

Standard building by-laws and registration rules still apply, such as registering your pet on the strata roll and keeping dogs on a leash in common areas. We review the building's specific pet by-laws with you prior to signing.

Question 38

What tax depreciation benefits are available when buying off-the-plan?

Accepted Answer

Newly built properties provide substantial tax deductions that established homes cannot match.

Eligible investors can claim Division 43 Capital Works deductions (2.5% per year on building construction costs over 40 years), alongside Division 40 depreciation on brand new internal plant and equipment (cooktops, air conditioners, hot water units, carpets). A quantity surveyor tax schedule maximizes these annual cash-flow savings.

Question 39

How do developer rental guarantees work, and should I rely on them?

Accepted Answer

A developer rental guarantee offers a nominated return for an agreed timeframe (for example, a set percentage over 12 to 24 months, depending on the promotion) to provide initial cash flow security.

While appealing, smart investors evaluate the property based on genuine local rental market demand rather than the promotional guarantee alone. We always assist clients in reviewing independent rental appraisals to ensure underlying yields are fundamentally sound.

Question 40

How do you help investors find tenants and manage their property after settlement?

Accepted Answer

Approximately two months before completion, we introduce investors to leading local property managers and specialist leasing agents.

They conduct rental appraisals, prepare marketing campaigns, and interview vetted tenants in advance. Subject to developer site access, prospective tenants can view the finished home so a lease is ready to commence immediately following settlement.

Question 41

Can foreign buyers purchase off-the-plan, and what FIRB rules apply?

Accepted Answer

Non-resident foreign buyers are generally permitted to acquire new off-the-plan residential properties, subject to formal approval from the Foreign Investment Review Board (FIRB).

Foreign buyer stamp duty surcharges and federal application fees apply. Your conveyancer or legal representative will submit your FIRB application concurrently with contract preparation.

Question 42

What is a house and land package?

Accepted Answer

A house and land package pairs a selected residential homesite in an estate with an architect-designed home suited to the block's contours, orientation, and covenants.

The purchase is structured through two separate agreements: a land contract directly with the estate developer, and a residential building contract directly with a licensed builder. This dual structure delivers substantial transfer duty savings.

Question 43

How does buying house and land differ from buying an established home?

Accepted Answer

With an established home, you pay stamp duty on the full purchase price and inherit existing maintenance wear and tear.

With a house and land package, you pay stamp duty only on the land value, saving thousands upfront. You also receive a brand new home built to current National Construction Code standards, backed by statutory builder structural warranties and zero immediate repair expenses.

Question 44

What does a turnkey package typically include?

Accepted Answer

A true turnkey package means the home is 100% complete and ready to move into or lease the day you receive the keys.

It includes everything often excluded from base builder quotes: concrete driveway, perimeter fencing, full landscaping, turf, clothesline, letterbox, window blinds, flyscreens, and reverse-cycle cooling. We verify that all turnkey items are included in your builder tender before contract signing.

Question 45

What are the benefits of buying in a masterplanned estate?

Accepted Answer

Masterplanned communities offer integrated infrastructure, curated streetscapes, landscaped parklands, playgrounds, and planned future town centres.

Estate design guidelines protect neighbourhood aesthetics, ensuring surrounding homes maintain architectural standards that protect your long-term capital growth and lifestyle appeal.

Question 46

What ongoing ownership costs apply to a house and land property?

Accepted Answer

Standard freestanding house and land properties have zero body corporate or strata fees.

Your ongoing outgoings are limited to municipal council rates, water and sewerage utility charges, building and contents insurance, and personal electricity and internet consumption.

Question 47

Do buyers pay fees or commissions to BARTA Property?

Accepted Answer

No. Our service is completely free to buyers. BARTA Property does not charge agency fees or consultation costs.

Like all project marketing firms, we are remunerated directly by the selling developer or builder upon successful property settlement. You receive independent guidance, builder comparisons, and package coordination at zero additional cost.

Question 48

What is the typical process from reservation to receiving the keys?

Accepted Answer

The journey follows six straightforward milestones:
1. Homesite & Design Selection (Lot Reservation & Home Design): Choosing your preferred allotment within the estate and selecting a builder floorplan tailored to the block dimensions, orientation, and estate design guidelines.
2. Contracts & Pre-Construction (Holding Deposit & Two-Part Contracts): Securing the lot with an initial holding deposit, signing unconditional land and standard fixed-price building contracts, and completing soil surveys and engineering.
3. Civil Works & Titling (Plan Registration & Land Settlement): The developer completes civil infrastructure. Once the plan of subdivision registers and individual titles issue, your conveyancer completes legal land settlement.
4. Approvals & Selections (Pre-Start & Council Approvals): Attending your pre-start consultation for interior colour palettes, cabinetry, and electrical plans, while the builder obtains Developer Covenant sign-off and Council Building Approval (DA/CDC or Building Permit).
5. Home Construction (Base, Frame, Lock-Up & Fixing Stages): Progressing through statutory contractual milestones: concrete slab pour (Base), structural wall and roof framing (Frame), external cladding and roofing (Lock-Up), and plasterboard, cabinetry, and wet area fit-outs (Fixing).
6. Practical Completion & Handover (PCI & Key Handover): Conducting your pre-handover walkthrough (Practical Completion Inspection / PCI) with the site supervisor, defect rectifications, issuance of the Occupation Certificate, final progress payment, and collecting your keys.

Question 49

What is the difference between titled land and untitled land?

Accepted Answer

Titled land is already registered with the state titles office, with roads, sewerage, power, and water fully connected. You can settle quickly and commence builder permits straight away.

Untitled land is purchased off-the-plan while the developer finishes civil construction. It allows you to secure a homesite with an initial deposit at today's price, giving you time to arrange build plans before land settlement occurs.

Question 50

What is a sunset clause on an off-the-plan land contract?

Accepted Answer

A sunset clause establishes the maximum date by which the developer must register the land subdivision with the state titles office.

If registration is delayed past this date, buyers possess the legal right to exit the contract and receive their deposit back in full. In Queensland, Victoria, and NSW, statutory laws strictly prohibit developers from cancelling contracts without buyer consent or court approval.

Question 51

Can floorplans and internal finishes be customised?

Accepted Answer

Yes. Most builders allow you to adapt internal layouts, add alfresco extensions, convert rooms, or upgrade finishes to suit your lifestyle.

Any customisations must be priced and integrated into the builder's final tender before contracts are signed to lock in your pricing and avoid costly variation fees later.

Question 52

Who pays for retaining walls and slope stabilisation?

Accepted Answer

Major estate retaining walls are constructed and paid for by the land developer during civil subdivision works.

Any minor boundary retaining required for your specific house slab is calculated from a site contour survey and included in your builder's site costs. When a retaining wall falls on a shared boundary with a neighbour, costs are shared in accordance with state dividing fences legislation.

Question 53

How long does construction typically take once the slab is poured?

Accepted Answer

National construction timelines currently average 11.5 months from building approval to practical completion, with notable state variations: Queensland averages approximately 9.2 months, while Western Australia averages 15.5 months. Pre-construction approvals (DA or CDC), soil testing, and developer covenant sign-off typically add a further 4 to 26 weeks prior to site establishment.

Once the slab is poured, typical stage durations include:
1. Base / Slab Stage: 1 to 3 weeks for earthworks, underground plumbing, and concrete slab curing.
2. Frame Stage: 2 to 4 weeks for timber or steel wall frames and roof trusses.
3. Lock-Up Stage: 2 to 4 weeks for roofing, external brickwork or cladding, glazing, and external doors.
4. Fixing Stage: 4 to 8 weeks for plasterboard, cabinetry, waterproofing, and interior detailing.
5. Practical Completion: 2 to 4 weeks for final fit-offs, painting, pre-handover inspection walkthrough (PCI), defect rectifications, and handover.

Your building contract specifies an agreed build duration in calendar days, incorporating statutory allowances for inclement weather and industry shut-down periods.

Question 54

How do construction progress payments work?

Accepted Answer

Under standard Australian residential building contracts (HIA and Master Builders), your construction loan is drawn down in progressive stages as certified works are completed:
1. Deposit (Contract Signing): 5% upon signing the building contract to fund soil testing, site engineering, architectural working drawings, and permit lodgements.
2. Base / Slab Stage (Foundation): 10% to 15% upon completion of site excavation, underground drainage, footings, and the concrete slab pour.
3. Frame Stage (Structural Framing): 15% to 20% upon completion and certification of wall frames, structural steel, and roof trusses.
4. Lock-Up Stage (Weatherproof Shell): 20% to 35% once external walls, brickwork or cladding, roof coverings, external doors, and windows are installed so the home is lockable.
5. Fixing Stage (Internal Fit-Out): 25% to 30% upon completion of plasterboard linings, waterproofing, cabinetry, architraves, skirtings, and wet area preparation.
6. Practical Completion (PCI & Handover): 10% to 15% following final detailing, painting, appliances, Occupation Certificate, and your pre-handover inspection walkthrough.

Your lender arranges a progress inspection before releasing funds directly to the builder at each certified milestone.

Question 55

Can I visit and walk through my home while it is being built?

Accepted Answer

Yes, through scheduled walkthroughs with your site supervisor.

Under Workplace Health and Safety (WHS) laws, the builder is legally responsible for site safety and public liability while construction is active. You can arrange milestone visits at key stages (such as frame, pre-plaster, and pre-handover) so you can view progress safely.

Question 56

Can an independent building inspector check the home during construction?

Accepted Answer

Yes, and we strongly encourage engaging an independent building consultant. While council or private certifiers conduct statutory compliance inspections, an independent inspector works exclusively on your behalf.

Industry experts recommend independent stage inspections at three critical milestones:
1. Frame Stage: Verifying wall frames are plumb and square, structural tie-downs and bracing are engineered correctly, and window/door openings match contract plans before walls are enclosed.
2. Lock-Up Stage: Inspecting roof flashing, brickwork, external cladding, and weatherproofing while scaffolding is in place.
3. Practical Completion (PCI): A rigorous pre-handover inspection checking waterproofing, drainage falls, cabinetry alignment, paintwork, and minor defects before the final progress payment is released.

Reports are provided directly to your builder's site supervisor for rectification under your domestic building contract.

Question 57

What compensation applies if the builder exceeds the agreed construction timeline?

Accepted Answer

Standard residential building contracts include a Liquidated Damages clause.

If the builder exceeds the contractual construction period (excluding legitimate certified weather or materials extensions), they are contractually required to pay you an agreed weekly amount nominated in your contract schedule (for example, often between $250 and $500 per week, though this is set by the individual builder) to offset holding costs until practical completion is achieved.

Question 58

Who pays for boundary fencing, and what happens if the neighbouring block is vacant?

Accepted Answer

Under state Dividing Fences legislation, adjoining neighbours share the reasonable cost of a standard boundary fence equally.

With our turnkey packages, perimeter fencing is included in the build. If your neighbour has already built, your builder connects to the existing fence. If the adjacent block is vacant, your builder installs the boundary fence, and your conveyancer assists in issuing a formal fencing notice to recover half the cost from the future neighbour when they build.

Question 59

What is the post-handover maintenance review, and are minor settlement cracks normal?

Accepted Answer

As a newly built home settles into its foundation and timber framing adjusts to seasonal temperature swings, minor hairline cracks in cornices or plaster joins are completely normal.

Most quality building contracts include a formal non-structural maintenance inspection (typically scheduled between 3 and 12 months post-handover, depending on your builder's specific warranty terms). You compile a list of cosmetic settling items, and the builder returns their trades to patch, caulk, and adjust doors in a single scheduled visit.

Question 60

How does a two-part split contract work?

Accepted Answer

A split contract separates your acquisition into two independent legal agreements:
1. Land Contract: Signed directly with the land developer for the purchase of the freehold allotment.
2. Building Contract: Signed directly with the licensed builder for the construction of your residence (standard HIA or MBA fixed-price contract).

Because you purchase the vacant land first, transfer duty (stamp duty) is calculated exclusively on the land value rather than the combined house and land value, resulting in substantial upfront duty savings.

Question 61

How does stamp duty work on a house and land package?

Accepted Answer

In almost all Australian states, stamp duty on a split contract is calculated solely on the dutiable value of the vacant land, provided construction has not started.

First-home buyers often qualify for partial or full stamp duty exemptions under state concession thresholds, significantly reducing upfront purchasing costs.

Question 62

What type of finance is required for a house and land package?

Accepted Answer

You require two coordinated loan components: a residential mortgage for the land settlement, and a construction loan for the build.

During construction, lenders charge interest-only repayments on the funds progressively drawn down, keeping holding costs manageable. Once your home is completed, the facility converts to standard principal and interest repayments.

Question 63

What deposit amounts are generally required?

Accepted Answer

You typically provide a nominal initial holding deposit (for example, $1,000 to $5,000, depending on the estate) to take the land off the market while contracts are prepared.

Upon unconditional exchange, the balance of the agreed land deposit is paid into a legal trust account. For the build, builders typically require an initial preliminary deposit to commence working drawings, soil tests, and council approvals.

Question 64

Can I access the federal First Home Guarantee for house and land?

Accepted Answer

Yes. Eligible first-home buyers can access the Australian Government's Home Guarantee Scheme through participating lenders, allowing you to secure a package with as little as a 5% deposit with zero Lenders Mortgage Insurance (LMI).

Regional price caps and applicant eligibility rules apply, and our mortgage specialists can assist in verifying your eligibility.

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