Katie Holmes and Tom Cruise at his son Connor's baseball game in Cali (05/24/06)

Tom Cruise is planning a new dream home in California.

The Hollywood actor has reportedly bought a plot from the Church of Scientology overlooking the San Fernando Valley.

It is thought the remote plot of land was purchased by Cruise for $10 million.

Tom is planning to build a massive family home on the land for his two adopted children, his fiancée Katie Holmes and their new baby Suri.

source revealed to website Hollywood.com: "Tom plans to spend up to $25 million on the project after agreeing to knock down one existing property and buying a second one next door."

Tom allegedly planned to buy a third property next to the plot to try and build an even bigger house, but his neighbours refused to move.

Last month, it was reported that Tom's Beverly Hills home is haunted.

Previous residents of the rented house on Alpine Lane that he is sharing with fiancée, and new mum Katie say they have experienced spooky sensations there.

Caleigh Peters - the daughter of Hollywood producer Jon - told friends that while living there she "heard noises" and said the house was "creepy" and "full of ghosts".