Unlock the Secrets to Buying House & Land in Hillarys

A house and land package lets you buy new without competing at Saturday inspections

A house and land package means you buy vacant land and sign a separate building contract, often with the same developer or builder.

The result is a brand new home on your own block, typically in newer estates or growth areas where vacant land is still available. In Hillarys, house and land packages are less common than in outer northern suburbs like Mindarie or Alkimos, but they occasionally appear when subdivisions are released near Whitfords Avenue or when older blocks are redeveloped closer to the coast. The biggest advantage for first home buyers is access to the full suite of Western Australian concessions. You pay no stamp duty on land valued up to $450,000 and qualify for the $10,000 First Home Owner Grant if the total value sits under the applicable cap. You also avoid competing against investors or upgraders at open homes, which can push prices higher in established pockets near Hillarys Marina or Whitfords Nodes.

Stamp duty concessions in WA now apply statewide with no regional cap

From 7 May 2026, the Western Australian Government removed the separate thresholds that previously applied to Perth and regional areas.

One set of figures now applies across the entire state. For vacant land, you pay no duty on purchases valued up to $450,000. A concessional rate applies between $450,001 and $550,000, calculated at $20.14 for every $100 above $450,000. For a completed home, no duty applies up to $600,000, with a concessional rate on properties between $600,001 and $800,000. The change means buyers in Hillarys are assessed on the same basis as buyers in Karratha or Bunbury. You must be a first home buyer, occupy the property as your principal place of residence within 12 months, and live there continuously for at least six months. The concession applies whether you buy land alone or enter a turnkey house and land contract, provided the combined value falls within the threshold.

Consider a buyer who purchases a block in a new subdivision near Whitfords Avenue for $420,000 and signs a building contract for $480,000. The land attracts no stamp duty because it sits under the $450,000 threshold. The completed home will be valued at $900,000 once built, which exceeds the $800,000 threshold for the First Home Owner Rate on homes, but duty is calculated on the land component at the time of purchase, not the final built value. That buyer avoids duty on the land entirely and receives the $10,000 grant because the home value is under the grant cap for areas south of the 26th parallel. The total upfront saving in this scenario is around $18,500 in duty plus the grant, reducing the cash required at settlement by more than $28,000.

The Australian Government 5% Deposit Scheme removes lenders mortgage insurance

Under the scheme, you can apply for a home loan with a 5% deposit and Housing Australia guarantees the difference between your deposit and 20% of the property value.

No lenders mortgage insurance is payable. No annual place limits apply, so the scheme does not close partway through the year. No income caps apply. The property price cap in Perth and applicable metropolitan postcodes is $850,000, which covers most house and land packages in newer estates. Both the purchase price and the lender's assessed value must sit at or below the cap. You apply through a participating lender, not directly through Housing Australia. Your broker will confirm which lenders are on the panel and whether the postcode of your chosen property qualifies under the metropolitan or regional cap. Split loan structures and offset accounts may be available depending on the lender, so confirm the loan features before lodging your application.

In our experience, buyers often assume they need to save a 20% deposit before they can purchase, which delays entry by two or three years. The 5% Deposit Scheme shortens that timeline significantly, but buyers still need genuine savings for the deposit plus additional funds for settlement costs, which include building insurance, council rates adjustments, connection fees, and conveyancing. At current lending standards, most lenders will want to see at least three months of regular savings or a clear explanation of where the deposit funds originated. A gift from immediate family can form part of the deposit, but lenders will ask for a signed declaration confirming the money does not need to be repaid.

How the First Home Owner Grant works with house and land contracts

The $10,000 grant applies only to new homes, not established properties.

For house and land packages, the grant is usually claimed at the land settlement, though some buyers wait until the home is complete. The value cap is $800,000 for homes south of the 26th parallel, which includes all of Hillarys. The cap is measured as the combined value of the land and building contract. If your land costs $420,000 and your building contract is $480,000, the total is $900,000, which exceeds the cap and makes you ineligible for the grant. If the building contract is $370,000 instead, bringing the total to $790,000, you qualify. Lenders and the Office of State Revenue assess value differently. The lender will order a valuation based on the completed home. The Office of State Revenue assesses the land value and building contract separately for stamp duty purposes but combines them for grant eligibility. You must occupy the home as your principal place of residence for at least six months starting within 12 months of completion.

Hillarys sits within the City of Joondalup, where most vacant land appears in smaller infill subdivisions rather than large master-planned estates. Blocks closer to the beach or Hillarys Boat Harbour typically exceed the grant cap due to land value alone. Packages that qualify for the full suite of concessions are more commonly found near the eastern edge of the suburb, closer to Whitfords Avenue or adjoining Padbury, where land prices remain below $450,000 in select releases.

Building timelines affect when you need your finance approved

When you sign a house and land contract, you settle on the land first and the building contract begins once the land is in your name.

Construction typically takes six to nine months depending on the builder, the complexity of the design, and supply availability. Your lender will usually require pre-approval before you sign any contract, then a full approval once the land settlement date is confirmed. Some lenders will approve the entire package upfront, while others approve the land component first and reassess before releasing progress payments during construction. If you are using the 5% Deposit Scheme, the lender will confirm your eligibility and lodge the guarantee application with Housing Australia as part of the approval process. Your income, employment, and credit position must remain stable between land settlement and home completion. A change in employment or an increase in other debts can affect the lender's willingness to release construction funds, so avoid taking on car loans or credit card debt during the build.

You will need to budget for two sets of settlement costs: one for the land and one for the completed home. The land settlement includes stamp duty if applicable, conveyancing fees, and any adjustments for council rates or water charges. The home completion settlement includes final progress payment, additional conveyancing fees, connection costs for utilities, and building insurance from the date you take possession. Buyers often underestimate the total cash required across both settlements, particularly if the build period stretches longer than expected and income or savings are reduced during that time.

Fixed and variable rate structures apply the same way as established home loans

You can choose a fixed interest rate, a variable rate, or a split structure where part of the loan is fixed and part remains variable.

A fixed rate locks in your repayment for a set period, typically one to five years, and protects you from rate rises during that time. A variable rate moves with the lender's changes and usually offers features like an offset account or redraw facility. A split structure gives you partial protection from rate rises while maintaining access to flexible features on the variable portion. The right structure depends on your income stability, your tolerance for repayment changes, and how long you plan to hold the property. Buyers who expect income to increase over the next few years often prefer variable or split structures to allow extra repayments without penalty. Buyers on tighter budgets who need repayment certainty often choose a higher fixed proportion.

Most participating lenders on the 5% Deposit Scheme panel offer all three structures, but not all lenders offer offset accounts or full redraw access, particularly on fixed loan components. Confirm the available features with your broker before deciding on a lender. An offset account can reduce the interest you pay over time if you maintain a buffer in the linked transaction account, but only if the lender permits offsets on low deposit loans under the scheme.

What happens if the land value or building contract changes during construction

The lender's valuation is based on the completed home, but that valuation is usually ordered before construction begins.

If the valuer assesses the finished property at a lower figure than the combined land and building contract, the lender may reduce the approved loan amount or ask you to contribute a larger deposit. If the builder requests variations during construction, the building contract price will increase, which can push the total value above the property price cap for the 5% Deposit Scheme or the First Home Owner Grant. Variations need to be approved by the lender before the builder proceeds, and the lender will reassess your borrowing capacity and the property value before agreeing to the higher loan amount. Buyers should avoid signing variation requests without confirming the finance impact, particularly if the total package value is already close to a concession threshold.

In a scenario like this, a buyer purchasing land for $430,000 and signing a building contract for $360,000 would have a total package of $790,000, which sits under the $800,000 grant cap with $10,000 to spare. If the buyer then requests $15,000 in variations for upgraded flooring and kitchen appliances, the new total is $805,000, which exceeds the cap. The buyer loses the $10,000 grant and may also lose access to the 5% Deposit Scheme if the lender's valuation of the completed home now sits above the $850,000 property price cap. That single decision costs more than the value of the upgrades.

Call one of our team or book an appointment at a time that works for you

House and land packages in Hillarys give you access to concessions that can reduce your upfront costs by tens of thousands of dollars, but only if the numbers align with the applicable caps and your lender confirms eligibility under the 5% Deposit Scheme before you sign. We work with buyers in Hillarys and across the northern suburbs to structure finance that uses every available concession without cutting corners on loan features or lender quality. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions