If you're in the market for your first home or looking to invest, you've probably considered the options of buying an existing house or building a new one. However, have you ever taken the time to explore the benefits of purchasing a house and land package? This innovative approach offers numerous advantages that are worth considering.
House and land packages provide a more straightforward option for buyers and investors, often offering better value compared to purchasing an already established home in the same location. This guide on buying a house and land will address key questions, helping you make an informed decision and set you on the path to your dream home.
If this is your first time considering a house and land package, here are some essential questions to ask to ensure you make the right choice for your first home or investment property.
What's the cost of a house and land package?
House and land packages are generally more affordable than purchasing an existing home, with prices starting at around $500,000.
However, it's crucial to understand that the cost can vary based on factors like the size of the home, the land, and the inclusions. Although house and land packages are typically a fixed price, it's vital to choose a reputable builder with transparent pricing and costs.
While a 20 percent deposit is required for most first home buyers, house and land packages new builds are exempt from the Reserve Bank’s LVR (loan-to-value) restrictions. In this instance, your bank or lender may allow you to buy a brand new home with a little as a 10 percent deposit.
What's included in the cost?
The inclusions and exclusions in house and land packages can differ among various home builders. Some may include items like driveways, fencing, and landscaping, while others may not. Therefore, it's essential to clarify what's covered and what's not in the package before committing to the build.
How long does it take to build?
The timeline for a house and land package can vary based on whether you're buying land ready for construction or not. Typically, the process can take anywhere from six to twelve months, starting from land purchase to design selection and approval.
However, some builders may expedite the process, especially when all consents and surveys have been completed, as many land surveys and development considerations are already complete.
Can I customise the design of my house?
One concern many people have about house and land packages is the fear of having a cookie-cutter home. While some builders have strict design options, others offer more flexibility. For example, certain builders allow you to modify the floorplan to suit your needs and offer customisation options for flooring, tiling, splashbacks, benchtops, facades, fixtures, an alfresco area, landscaping, and even smart home upgrades.
Are there any financial incentives?
First home buyers may be eligible for the First Home Grant, which provides up to $10,000 if the house and land package total cost comes under the new properties price cap. This is different for every region, ranging from $650,000 to $925,000.
Additionally, some builders may offer packages that include luxury add-ons or upgrades at a more reasonable price compared to a standard package.
Is a house and land package a good investment?
If you're looking for an affordable way to acquire a new home, a house and land package is an investment worth considering. A house and land property can appreciate over time, especially if it's in a prime location. As the land value increases, so does your capital growth. For investors, there's also potential for future developments or multiple dwellings on the same plot.
Ready to explore your ideal house and land package?
Whether you're selling a home and looking to upgrade or you're a property investor seeking a sound investment, house and land packages offer competitive value. They provide an opportunity to secure a brand-new home at a typically lower cost than an existing property or new build.
If you're ready for your next property purchase, the team at LJ Hooker can assist you in selling your home or investing in real estate to help you achieve your property goals. Connect with your local LJ Hooker real estate agent today.
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