Buying Land and Building Later in Queensland - A Complete Guide

The timeline and cost involved in building a home in Queensland isn’t always suited to the circumstances of future homeowners — for those that may need a little more time to get their finances or personal arrangements in order there’s the option of buying land and building later. However, this approach is not without its considerations – buyers will need to keep in mind several conditions of building later on bought land to avoid costly pitfalls. 

What are the advantages of buying a block of land and building later?

When it comes to building a new home, the total cost of the project can be broken down into two main parts — the cost of buying the land, and the cost of construction for the home. 

By buying a block of land and building later, buyers can secure one part of their future property without needing to take out a big loan for the cost of the entire new build. They can focus on building up their finances before committing to the construction of the home later on. 

This lower financial requirement also allows buyers to take immediate ownership of the plot of land, which is ideal - particularly if the plot of land is being sold at a good price.  

Buyers may also save additional costs if eligible for the Queensland Government's first home vacant land concession. The concession reduces the amount of stamp duty that buyers need to pay when acquiring the block of land. The first home vacant land concession only applies to vacant land valued under $500,000, and has the following eligibility requirements:

• Buyers must have never claimed the first home vacant land concession before, or owned any property in Australia or overseas.
• Buyers must pay market value for the land if is it valued between $350,001 and $499,999
• Buyers must only build 1 home on the land
• Buyers must build their first home on the land and reside in it within 2 years of the settlement

With the first home vacant land concession applied, buyers of vacant land valued at ? ?$350,000 or under will not be required to pay any stamp duty for the land. 

Is there a time limit for when you need to start building on bought land in QLD?

No, there is no state-wide time limit that applies to land that has been bought — generally landowners can choose to build on the land at any time after purchasing. However, certain land purchases include developer clauses that stipulate that a property must be built within a certain time period.  

If the first home vacant land concession has been applied to the purchase of the land, a time limit of 2 years will apply before which owners must build their property on the land and move into it as a primary residence. 

The first home vacant land concession also imposes limitations on the use of the built property for leasing and renting. Homeowners will not be allowed to lease or rent the property built on the land before they move in. After moving in, part of the property will be allowed to be rented out if the lease agreement starts during the period between 10 September 2024 and 30 June 2025, and only if the owner continues to reside in the property. 

Building a new home in Cairns

Cougar Homes are Cairns’ leading residential builder - we can work with you on your purchased land plot to build a new home that ticks all of your boxes.  

Alternatively, to avoid the pressure and costly consequences of failing to build within the time limit, buyers can opt for a house and land package instead. House and land packages in Cairns and North Queensland offer a simplified way to purchase a get a customisable home — the cost of both the house and land are bundled into one purchase.