I get asked questions around the House and Land packages a lot. So I thought I would put my thoughts down in a post. What do I look for when selecting a house and land package? 1. Good rent demand and reasonable vacancy..ideally less than 2.5% 2. I like to get into the first 10-20% of stages..so get in early land prices rise rapidly once the parks and other infrastructure in the estate get built. Buying land off the plan has advantages but carries the risk of not being able to settle if you circumstances. 3. I am small lot and house specialist. Most people tend to build the biggest house and land package they can. Typically they will want land more than 400 sqm and a 4x2x2 home (2 living area and baths). I tend to build on 260-300 sqm lots..mostly 3x2x2 (one living) approximately 17 sqm. Why? There is a huge demand for this product from downsizers, single moms, and downsizers. The demand is not being met...people still think traditional families. 4. My build price point so far in Melbourne has not exceeded 177k for a single storey home fully complete 5. I trick up the house - 2590 ceilings, A/C, stone benchnchtops, 900mm appliances, downlights, blinds, paved out door areas or alfresco, BIR, and plenty of storage, niches in baths, etc. This is what people are looking for. 6. Look for areas within 15-50 klms from the city. Will vary by city on distance. Further distances are more accepted in Melbourne and Sydney. Now here is the real rewards: 1. If you pick well ....you should be able to make a 15-30% profit on the house on completion 2. Rental returns if you picked well should be Neutral or Positive. For example one of my houses goes to site...and the val on completion will be 360k...total cost for the build is 301k. 3. The icing on the cake is depreciation. I have a high income...this equates to something like the equivalent of 2% growth just based on this. 4. Minimal maintenance assuming you have a builder who as done a quality job. I do inspections via and independent company thoughout the build.