House and Land Package Vs Established Property
There are so many options for home buyers. You can buy an off the plan apartment, an already constructed apartment, townhouse or a house. Another option is a house and land package where you buy the land & build a home on your land. If you are First Home Buyer, you may qualify for First Home Owner Grant. If you are an investor, you will be able to claim depreciation on your brand new investment. New Home will have less maintenance making it first choice for investments.
What is a house and land package?
A house and land package is probably the largest property investment you can make. It is also the simplest in the long run. When you buy a house and land package you are purchasing the house and the land at the same time.
This type of property transaction is the most affordable and convenient way of building a new home. House and land package includes a home that has already been through the approval process. This will speed up the process for you and takes the guesswork out of finding the perfect home.
While house and land packages are generally ‘cookie cutter’ designs, you can customise them based on your own needs. They come with optional add ons so you can get the home you want.
There are no hidden costs so you know upfront what you will pay which makes the home loan approval process much easier. You won’t have to worry about disappointment if you find the property costs more than you can afford.
Before you commit to a house and land package you need to consider:
- The standard inclusions and optional add inclusions.
- Is it fixed price contract or there are loop holes for price increase by builder
- Is your land registered or how long for land to be titled
- Your ideal location and land size.
- The home design.
- The knowledge of the building and construction home.
What are the most common features in a house and land package?
Every house and land package is different but there are common features that come as part of the basic build. Some of these include:
Accessories and finishes
- Most house and land packages will include basic finishes, but you have the option to tailor them to suit your individual style. If you want to upgrade you will incur an additional fee.
Outdoor decor
- Do you want a double garage or a covered entertaining area? What about a balcony or a deck? These are some of the options that you can add onto the basic plan. The ability to add them will depend on your budget and if your plan allows you to.
Smart Inclusions
- These are becoming more and more common wether it’s a smart thermostat, luxury appliances or touch switches. A smart home will be more convenient for you and you can cut costs further down the track even if you’re not overly fussed with every technical element.
Floor Plan, Layout and Design
- Although the size of the home is often pre-determined you can change some things like the ceiling height, placement of the rooms or even add an additional floor. These features are typically offered when you first start looking at house and land packages.
Most Desired Home Inclusions
- Majority of builders will offer you basic inclusions however adding higher ceiling height, 900mm applicances & upgrading to appealing facade will increase the value of your home. Also, 4 bedroom home instead of 3 bedroom will have more resale value incase you decide to sale in the future.
What are the benefits of a house and land package?
The first obvious benefit to a house and land package is that you only have one transaction to think about. That means you don’t have to worry about multiple repayments or searching for a block of land. It’s all inclusive and that will save you time and money.
As mentioned you can select a home that suits your individual needs without being inundated with endless choices. It’s all laid out for you from the beginning, so all you need to do is look at the options, make your choice and then the builders will get to work.
While it will depend on the construction company it’s very easy to customise your home with a house and land package. You can choose the interior and exterior features that you want based on the options available.
Although an old home can have many nice features, a new one is a brilliant investment and can save you on the hidden costs that you may incur if you were to buy an existing home. You can actually save money in the long run. Building standards are constantly evolving so when you buy new you can be sure that the property you buy will meet current regulations and that you are unlikely to need to undertake significant repairs for 10 – 20 years, by which time you may be ready to move onto your next home.
Options of House and Land
With less likelihood that you will need to undertake significant repairs, the house will be easier to rent out if you purchase it as an investment. When the time comes it will also be easier to sell because the features will be more modern.
You can easily set your budget when you buy a house and land package. When you buy an existing home, you’ll often have the initial outlay for the property and then there may be renovations that you need to do before you can move into the house. With a house and land package you don’t have to worry about that. It has a fixed price and that won’t change. Most house and long packages include the building and land costs so you can purchase a home that meets your needs.
You have the flexibility to create appealing landscaping. That includes things like a pool or other landscaping such as a water feature, garden, outdoor kitchens, driveways and pergolas and retaining walls or fencing. It’s a one stop shop so you’ll end up getting it done all at once without having to worry about contracting to multiple builders. That adds another plus which is that your builder knows your block of land well so they’re not starting from scratch which means they can recommend options that best fit the area.
How we can help
We are specialist in construction loan, home loan for first home buyers as well as purchase of investment properties. We can negotiate a home loan for all types of properties including house and land packages. At Nice Home Loans, have relationships with many lenders and will find the best one for your particular home loan.
Our brokers are available on (07) 3114 2281 or you can send us a message here and we’ll be happy to give you advice and a consultation.
