Turnkey vs House and Land

With a turnkey build, you pay a fixed price and receive a finished product: all you have to do is wait until the build’s complete, then “turn the key” in the lock. With a house and land package, you work with the builder throughout the build process, allowing for more customisation.


There are benefits to both options, and we’ve outlined the key points below.

Turnkey

Simple Process

Turnkey homes are an all-in-one solution, with very little input required from the homeowner; the builder handles all of the admin, management, consents and signoff during the construction process. It’s a great solution if you’re time-poor or are worried that you’ll find the build process too stressful. 

Fixed-price package

With a turnkey build, from Day One, you know exactly what you’re paying and exactly what you’ll get. It’s very unusual for the final price to change on a turnkey build because the builder takes on the risk of material rises or delays that affect the budget. This removes the element of surprise and gives you peace of mind. Additionally, because the construction company is taking on the financial risk, they’re motivated to finish the build quickly and efficiently.

However, because you won’t be able to make changes during the build, it’s important to check the specifications carefully and make sure that everything you want in your new home is included in the plan. 

Single payment on completion

Turnkey homes allow you to make an initial deposit and then pay the balance once the build is completed. This is different from a house and land package, where you make progress payments at different build stages. 

There are two significant benefits to the turnkey payment structure: firstly, you have more time to get your savings together before making your final payment. Secondly, if you’re taking out a mortgage to pay for your home, you won’t need to draw this down until the build is completed (unlike a house and land package, where you’ll need to draw down your mortgage to make your progress payments). This saves you interest and means your mortgage payments won’t start until you’re in the home. 

If you’re concerned about the financial strain of paying a mortgage during the build process while also covering your existing rent or mortgage, a turnkey build could be the right option.

House and Land Packages

More design flexibility

With a turnkey build, you’re buying a house “off the shelf”, and the home design is effectively finalised before you see the plans. You’ll be able to customise some of the minor details, but you won’t have any input into the majority of the home design and specifications.

With a house and land package, you can work with the builder and their designer to customise your home’s features. If you’d like to have a significant amount of input into your home’s design, a house and land package is likely to be a good solution.

More involvement during the build process

If you like the idea of site visits, progress updates and being involved every step of the way, a house and land package might be the right choice! You’ll be involved throughout the construction process and will have regular check-ins with your builder. This also gives you a few opportunities to make minor changes during the build (although be aware that any variations during the build process are likely to affect the project’s cost).