House & land · Investors
Short answer
Before you buy house and land as an investment in Victoria, check both contracts, since land and build are usually separate. Confirm when the land will title and how many similar homes in the estate may come up for rent at once. Check whether the finished home meets Victoria's rental minimum standards, and work out your holding costs while you wait.
Tax, depreciation and land tax rules apply. This is general information, not personal financial or tax advice, so see an accountant or licensed adviser.
Turnkey Building Group (TKBG), Victoria's leading builder broker, compares full turnkey, fixed-price packages from over 35 builders. We're paid by the builder from a share of its margin, so using us costs you nothing extra.
Checklist
In Victoria, house and land usually means two contracts: a land contract with the land seller and a building contract with the builder. Get both reviewed by a conveyancer or lawyer before you sign.
As an investor, check:
From 1 July 2026, the Home Warranty Scheme replaces Domestic Building Insurance for eligible contracts signed on or after that date (over $20,000, 3 storeys or less). Cover includes lost deposits, incomplete work, and defective or non-compliant work. Ask the builder for proof of Home Warranty cover for your address before you pay a deposit.
Inclusions
A turnkey home is finished to move-in stage, but that doesn't automatically mean it meets every rental standard. Check the written inclusions against them (see what turnkey includes).
Consumer Affairs Victoria (CAV) sets 15 categories of rental minimum standards. A property must meet them when it's advertised or offered for rent and before the renter moves in. From 13 October 2026, rental providers must keep records showing the property meets them. A few that touch your inclusions list:
| Standard | What CAV says | What to ask the builder |
|---|---|---|
| Heating | Energy-efficient fixed heater in the main living area, such as a non-ducted air conditioner or heat pump rated 2 stars or above, or ducted heating with an outlet in that room (agreements from 29 March 2023) | Is heating included, what type, and where is it? |
| Window coverings | Curtains or blinds in rooms likely to be used as bedrooms or living areas, that close, block light and give privacy | Are blinds in every bedroom and living area, and do they block light? |
| Cord anchors | From 1 December 2025, corded internal window coverings need an anchor so cords can't form loops | Are anchors fitted, or are the blinds cordless? |
| Deadlocks | Functioning deadlocks on external entry doors (with exceptions) | Is every external entry door deadlocked? |
| Shower heads | 3-star water efficiency rated shower head | What's the rating on the fixtures schedule? |
| Bins | Rental provider supplies vermin-proof rubbish and recycling bins | Who supplies the bins for this address? |
New minimum rental standards for energy efficiency start on 1 March 2027. Check the CAV page for the detail, and ask the builder how the home's specification lines up.
Tax
Treat this as a starting point for a talk with your accountant.
Budget
The negative gearing and capital gains tax changes from the 2026-27 Federal Budget are now law, under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, and apply from 1 July 2027 (Treasury, ATO).
Put together, the changes tilt the numbers further toward new builds: they keep negative gearing and the CGT choice, while established homes bought after 12 May 2026 don't. A house-and-land home built on a vacant lot fits the explainer's description, but ask your accountant or a licensed adviser to confirm yours qualifies once the definition is final, and how the changes apply to you.
General information only. This page is general information. It doesn't take into account your objectives, financial situation or needs, and it isn't personal financial, tax or legal advice. Tax and investment rules change and depend on your circumstances. Before you act, talk to a licensed financial adviser, a registered tax agent or accountant, and your lender.
Holding costs
Between signing and your first rent payment, you're paying for the property without income from it. That can include loan repayments on the land and on each build stage, plus ongoing costs Moneysmart lists in its guide to buying an investment property, such as council and water rates, building and landlord insurance and land tax. Moneysmart also warns that rental income may not cover your mortgage and other expenses, and that there may be periods without a tenant.
How long you hold depends on two things: when the land titles and how long the build takes. Read titled vs untitled land and how long it takes to build a house in Victoria. Then ask your lender or mortgage broker how your loan handles the land settlement and the progress payments.
Where TKBG fits
TKBG is a builder broker, not a builder. We compare full turnkey, fixed-price packages from over 35 builders, so you can line up inclusions, specifications and prices side by side. You sign the building contract directly with the builder you choose. Read how a builder broker works.
We can give investors general information to help compare new-build packages, such as how inclusions and the two contracts line up, and how the 2026 Budget changes treat new builds. It's general information, not personal financial or tax advice, and we won't tell you whether a property is a good investment for you. Get advice from your accountant or a licensed financial adviser for your own situation. Moneysmart warns to be wary of property investment advice from groups of service providers who recommend each other, so ask everyone involved in your purchase, including us, how they're paid. We're paid by the builder from a share of its margin, so using us costs you nothing extra.
Questions
It depends on the property, the price, your finances and the rental market in that estate. Moneysmart says you may make money through rent, value increases or both, but you also manage ongoing costs, vacancies and loan repayments. TKBG can give general information, not personal advice, so talk to a licensed financial adviser, an accountant and your lender before you commit.
Not automatically. A rental must meet Consumer Affairs Victoria's minimum standards when it's advertised or offered for rent and before the renter moves in. Check the inclusions for a fixed energy-efficient heater in the main living area, curtains or blinds in bedrooms and living areas, cord anchors on corded blinds, deadlocks on external entry doors and a 3-star shower head.
The ATO says you can claim capital works deductions for certain construction costs, but only once construction is complete. You need the construction cost, the start and finish dates and who did the work. Keep records from when you contract the builder. Separate rules apply to depreciating assets. Ask a quantity surveyor and your accountant what you can claim.
SRO Victoria says land tax is an annual tax on the total value of taxable land you own in Victoria, excluding exempt properties like your home. It applies to investment residential properties and vacant land, so it can apply while you're waiting to build. Check your position with the SRO and your accountant.
In a new estate, similar homes can finish around the same time and come up for rent together, competing for the same renters. Title delays can also push back your build and your first rent payment while holding costs continue. Ask the land seller about stage sizes and title timing, and think about who the home suits as a renter.
The scheme applies to eligible domestic building contracts signed on or after 1 July 2026, which are building contracts over $20,000 for homes of 3 storeys or less, according to vic.gov.au. Cover includes lost deposits, incomplete work, and defective or non-compliant work. Ask the builder for proof of cover for your address before you pay a deposit.
The changes are now law and apply from 1 July 2027. New builds keep negative gearing against other income such as wages, while established homes bought after the 12 May 2026 announcement lose it from 1 July 2027. New build investors can choose the 50% CGT discount or the new indexation and minimum tax method when they sell. The definition of a new build isn't final, so ask your accountant how the changes apply to you.
No. We're paid by the builder from a share of its margin, so using us costs you nothing extra. We compare full turnkey, fixed-price packages from over 35 builders, and you sign the building contract directly with the builder. We can give general information, not personal financial or tax advice.
Next step
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Questions? Email info@tkbg.com.au