If you’re a first-time homebuyer or investor, you may be weighing the pros and cons of buying versus building a new home. But have you thought about purchasing a house and land package?
House and land packages provide a more efficient solution for both buyers and investors. Plus, they can offer considerably better value than buying an existing home in the same area.
This guide to house and land packages will address any questions you have, clearing up any confusion and helping you take the right steps towards your dream home!
If you’re considering a house and land package for the first time, here are some important questions you should ask to ensure you’re making the best choice for your first home or investment property.
House and land packages are often more affordable than purchasing an established home, with prices starting from as low as $500,000. However, it’s important to understand that the price can fluctuate based on the home and block size, as well as any additional inclusions. When buying a house and land package, don’t forget to account for extra costs such as registration fees and stamp duty, which are not included in the listed price. Because of this, it’s crucial to select a reputable builder who offers clear, transparent pricing. Typically, you’ll need a 10% deposit for the land loan and a 5% deposit for the construction loan. For ready-built turnkey house and land packages, a 5% deposit may be sufficient.
What is included in a house and land package can differ from one builder to another. For instance, some builders may include the driveway, fencing, and landscaping, while others may not. Therefore, it’s crucial to clearly understand what is included and excluded in the package before finalizing your decision to proceed with the build.
The timeline for purchasing a house and land package can differ depending on whether the land is registered or not. If the land is ready to build on, the process may be quicker. Generally, you can expect a house and land package to be completed within six to twelve months, starting from the time the land is purchased and the design is finalized and approved. However, if the builder is working with registered land, the timeline could be shorter, as many of the necessary land surveys and developer approvals may already be in place.
A common concern when purchasing a house and land package is the perceived lack of ability to customize your home. No one wants a house that looks like it’s straight from a factory! While some builders offer limited design choices, others provide more flexibility. For example, many house and land builders allow you to adjust the floorplan to meet your needs, as well as other options to personalize your home, such as:
– Flooring and tiling options
– Splashback and benchtop options
– Façade styles
– Fixtures and finishes
– Alfresco area additions
– Landscaping choices
– Smart home upgrades
If you’re a first-time homebuyer or building your first home, you might qualify for the First Home Owner’s Grant of $10,000, provided the house and land package is valued under $750,000. Additionally, there may be other financial incentives you can take advantage of. For instance, some house and land builders offer packages with premium upgrades or luxury features for a price lower than a standard package.
If you’re looking for a cost-effective way to purchase a new home, a house and land package is a great investment. Along with government incentives like stamp duty savings, the value of a house and land property will typically rise over time – particularly if it’s located in a desirable area. As your land value appreciates, your capital growth also increases. For investors, there’s also the potential to build multiple dwellings or develop the land further in the future.
Whether you’re selling a home and looking to upgrade, or you’re a property manager exploring reliable investment opportunities, house and land packages provide excellent value. They offer the chance to purchase a brand-new home, often at a lower cost than an established property or custom build.
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