Home and land packages are one of the easiest and fastest ways to purchase a home that can be tailor-made to meet a family’s needs. This is why they have become one of the most popular and economical routes to home ownership. If you are considering home and land packages in Sydney, read on to find our easy guide to purchasing your dream home.
The Basics
There are two basic options to choose from when purchasing a home and land package:
- Selecting the block of land of your choice and then choosing from a number of standard or custom home designs.
- Purchasing a pre-built home and the land it is built on.
The Benefits
House and land packages have long been the most popular home ownership route for the economical purchaser. One of the major financial benefits is that the price is clear upfront. This is an important consideration for buyers whose finance is pre-approved, and who may be on a tight budget. Many home builders and developers also offer a range of payment options.
Designing a brand new home including fitts, colours and all inclusions, is a time consuming and difficult process for the amateur renovator. Home and land packages save you the time and stress of designing your own home. Professional interior designers and architects are involved in every aspect of the design, ensuring a high-quality product without the costs associated with consultancy fees.
Standard Inclusions
Standard inclusions in a house and land package include:
- Windows and doors
- Electrical points
- Fans
- Stairs
- Tiles
- A fully-fitted kitchen and bathroom
Some companies may also offer additional inclusions, depending on the price and style of the home. For example, it may include carpets and tiling throughout, stone kitchen bench tops or stainless steel appliances. There are thousands of developers offering these packages throughout Australia, with most offering slightly differing package deals. Before signing on the dotted line, it is therefore important to enquire about the inclusions in the quoted price. This ensures that you will not be stung with surprising and additional fees for standard features.
Choosing a Home Builder
With so many home and land packages to choose from, it can be difficult to narrow down the field. It is, therefore, helpful to consider the base prices offered by developers in the area you want to live in. Once you have narrowed down your options based on price, it is then imperative to thoroughly research your developer’s credential and reputation. Most developer’s are reputable, but the only way to know for sure is to check their track record.
When choosing a home builder it is also important to consider the following;
- Designs
- Where they are currently building
- Inclusions in the contract
- Fixed price fees
- Any add-ons relevant to you
- Terms and conditions of the contract
- Expected construction time
Financing
Financing a house and land package is a two-step process.
Step 1 (Buying the land): The land is purchased with a simple mortgage loan; and
Step 2 (Construction): The house is built with a construction loan.
Home and land packages are an affordable home loan solution for the budget savvy purchaser, allowing you to bundle your financing loans for the house and land. One of the main financial benefits of the package approach, is that the construction loan allows you to ‘draw down’ on an agreed amount to pay during each stage of the building process. This means that you only pay interest on the specific money you are using during each stage that the home is built. It also means that you do not have to pay stamp duty, as it only applies to established homes.
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The value and choice offered in house and land packages today has made this option increasingly more convenient and enticing to new homebuyers. Choosing a reputable home builder and researching all inclusions and contract terms, are key to ensuring that you enjoy all the benefits and ease of a home and land package.
