A house and land package is when you buy a block of land, choose a floor plan and house design to fit the block of land and then build a brand new house. There may be a choice of different land lots and different home designs to suit the lots, or the developer/builder may simply package together a block of land with a particular house design with minimal variations permitted. In a house and land package, as the name suggests, the two are always sold together.
No. In Australia, inclusions typically differ greatly depending on the developer or builder and the package itself. Some packages may be tailored towards first home buyers where as other packages might be tailored towards investors or have more luxury inclusions at a higher price cost.
House and land packages are usually offered by developers and builders in land estates and subdivisions where land is readily avaliable. If you have a preferred location in mind, you can visit the estate website but we typically recommend you contact a professional such as one of our consultants at TPG Property Group to help you through the tedious process and help negotiate a discount on the land purchase.
A different type of loan is offered if you buy a house and land package. Finance for a house and land package is has two steps, first is a regular mortgage for the purchase of the land and then a construction loan for the house which is usually packaged together.
This means if you purchase a house and land package, you pay for the land upfront, but you pay for the house as it reaches the different stages throughout the construction process. This ensures you are only paying interest on the full amount once the house is complete which eases the financial stress if you already have a mortgage or are renting.
House and land packages usually allow you the flexibility to customise a to build the exact house you want in your chosen location. You have the flexibility to work with your budget, allowing for easy financial planning. Additionally, loan options are avaliable, eliminating the need to pay the full amount upfront before the construction of your house.
If you are an investor you can claim depreciation on your new house and a brand new house will attract tenants. In addition, you don’t need to worry about maintenance costs due to the warranty typically offered by builders and your new build can include environmentally friendly materials and features to keep your household running costs down, which is beneficial for both owners and tenants. House and land packages are a simple and affordable option for any new home buyer.
Depending on your state, you may be exempt from stamp duty a first home buyer and as an investor, you only have to pay stamp duty for the land, saving you a lot of money overall.
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