For many investors, buying a house and land package in Australia is more convenient and practical than purchasing land separately. Yes, a house and land package is basically self-explanatory. But there’s actually more to it. There is more to the deal that you should know to ensure you don’t come across problems with your real estate investment.
Below, we will discuss what to know when buying a house and land package, particularly its inclusions and how to invest in one.
What Is a House and Land Package?
Most of the time, property developers buy large blocks of land and divide them into smaller parts. While some are immediately put up on sale with the option to build your house with a construction loan, others are offered with a ready-made house, plus other options.
Between the two, the standard house and land packages are probably the most ideal choice, especially for those who want to build their houses from scratch.
The latter is also called a turnkey package. Such a house and land package include a lot and a ready-made house. No more work is required from the buyer because the house is all set and livable with bathrooms, kitchens, and more. As for this option, buyers have limited design options, though. Property developers will sometimes show a range of available home designs you can choose from. And in some cases, you will be given a chance to add more features to the package. However, be extra cautious with these upgrades as they can quickly cause a spike in your package’s price.
How Does a House and Land Package Work?
For both types of packages, a home buyer will be given a contract for both the land and home construction as they will be purchased as two separate entities. Also, in both packages, the builder and the developer work together at the home’s construction phase. This makes house and land packages a more convenient option compared to buying a parcel of land and having to find a home builder on your own.
Perhaps, the only obvious difference between the two packages is the financial arrangement.
As mentioned, if you buy the land first and build your home, you will be given two contracts. The first one is for the mortgage on land, while the other is for the building contract. Depending on the situation, the loans can be obtained from one lender or may be separated.
The construction loan will then be released in stages, and the buyer will only have to pay the interest rate on the amount used. The general stages of construction that are considered include pouring the concrete slab, building the roof and walls, securing the house, and the final phase of the construction.
With turnkey packages, on the other hand, the financing scheme is relatively simple. Although the packages are usually advertised with a fixed price, they still have two contracts. That is because there is a fixed price for both the house and the land. But the finance will still be released to the property developer. Buyers will only have to move in once the property is built. There will be no unexpected issues that will bother buyers, like builders asking for more money in the middle of the construction. Everything will be discussed upon purchase. This makes turnkey packages a convenient choice for first-time home buyers.
3 Tips in Buying a House and Land Package
Investing in a house and land package is undoubtedly a more convenient option for home buyers. However, to maximise your investment, here are some tips to take into account:
Continuing on our discussion on what to know when buying a house and land package, we’d like to emphasise the importance of doing research. This is probably the most important step in purchasing house and land packages. Make sure you know what type of house you are looking for and that you have a preferred land size in mind. You may also think about additional features you want to see at your future home, such as fences, landscaping, and garages. With this information at hand, you can easily narrow down your options and make informed decisions.
If you have a certain location you’re eyeing, check if they have all the amenities you want, such as shopping centres, hospitals, universities, and schools.
In addition, research about potential builders and developers you want to work with. Look for the best price that suits your budget requirements. Also, review the previous projects they have completed to have a clearer picture of the quality of their work.
2. Get in touch with the developer
After doing your homework, book an appointment with the developer that offers the house and land package you are interested in. Take note that the builders and house designs differ. Take a closer look at the costs and the estimated completion date of the construction.
If possible, visit the model houses at your preferred location. Ask for more information, especially about what is and what’s not included in the deal. Model houses often feature the best finishes, appliances, and fittings, but they may not be included in the actual package.
Now, if you are uncertain about the inclusions of the package and other legal documents, do not hesitate to ask for advice from a legal professional.
3. Consider your financial capacity
To be able to close the deal, you need to get in touch with a banker or broker. The common documents that will be asked from you are your most recent pay slips, tax returns and your savings history.
After that, check the costs that are included in the package. When you purchase a house and land package, the costs for taxes and registration fees are often not included. So, you may have to work with real estate agents in Liverpool or a property manager in Mount Annan who can make sure all your regulatory requirements are attended to by referring you to a legal and/or financial specialist.
Congratulations, You’re All Set!
Are you ready to find a house and land package in NSW? List & Sell’s real estate agents in Liverpool and property manager in Mount Annan are more than ready to assist you. We will help refer the right specialists to check the contracts and documents to ensure a hassle-free experience! When buying a house and land package, don’t hesitate to get in touch with List & Sell.