WHAT IS A HOUSE AND LAND PACKAGE?
Among the several options in the market to build your home, one option is to purchase a House and Land package. The potential benefit of buying your new home this way is that you can customize the property to suit your needs. So, instead of buying vacant land and then looking for a custom-built home design and a builder to create your home, you can opt for a house and a land package. House and land packages are typically offered in new housing estates created by property developers.
An alternative scenario involves buying the land from the developer and then purchasing the home separately from a builder. In this case, there will be two contracts – one for the land purchase and one for the building purchase – but it’s still considered a package deal.
WHAT DO YOU NEED TO CHECK FIRST?
One of the biggest benefits of buying a house and a land package is that You can save up to 50% on stamp duty because you only have to pay for the land portion and not the total cost of the property. However, there are still a number of steps you could go through to boost your chances of a successful build.
- Proper research is to be done to find one developing land in an area that suits you.
- To gauge your level of satisfaction, if possible, contact people and ask for tips on what to watch for.
- Inspect display homes on the estate, if available, once you have settled on a developer and location.
WHAT ARE THE STEPS OF BUYING THE PACKAGE?
Step1 – Loan
Firstly, you need to get pre-approval for your home loan so you can search for your new block or home with confidence keeping your budget in mind.
However please keep in mind that pre-approval is an indication (not a guarantee) from the bank as to how much you can borrow.
Step 2 – Reserve (EOI)
After pre-approval, it’s a good idea to find and reserve the land you are purchasing, while you select your builder and house. This will ensure that you know what you’re working with and the land doesn’t get sold before you have finalized your floor plans.
Step 3 – Approach a Developer
Once you’ve chosen your house and land package, you’ll need to sign the contract of sale. This is a written agreement outlining the terms and conditions of the sale, including the price you are offering and the settlement period. It will be either a conditional offer (containing specific conditions on which the sale relies) or an unconditional offer (when the purchaser has funds immediately available). The contract of sale is held in a trust account and cannot be accessed by the developer until settlement.
Step 4 – Organize your Finance
Next, you’ll need to pay the deposit.
You’ll need to choose a solicitor to handle the paperwork involved with your purchase. At this point, you will need to clarify any specific terms and conditions of the sale. Your lender or mortgage broker will help you with all your mortgage documents.
After the exchange of contract, you will be asked to sign a transfer of land document. The document is then registered with the Land Titles Office / Register of Titles (by the owner or developer) so the property can be transferred into your name.
When the purchase is officially registered, final settlement takes place, your mortgage becomes active and the property is yours.
WHAT ARE THE ADVANTAGES OF A HOUSE AND LAND PACKAGE?
One-stop shop
The biggest headache can be searching for the land that works with your chosen house design from a builder that builds in the location that you choose to build. If you need a time efficient option to a new home build, then choosing a house and land package is a great option. All the hard work is done, and you won’t have to deal with the unknown of site costs and coordinating different parties. A house and land package, although technically two contracts, is all done through one package for ease.
Pay only Stamp Duty
When you purchase a house and land package, you only pay stamp duty on the value of the land, whereas when you buy an existing house, you pay for both the house and the land.
Energy Efficient
One of the perks of purchasing a house and land package is that they are often far more energy efficient than older homes, which will save your money on bills. You’ll also have very few maintenance outlays and if there are any problems, your home is covered by the builders’ warranty. You can also claim additional tax deductions and depreciation on a new home.
You can choose the best Design for you
Home buyers now have enormous flexibility to choose their perfect block of land, match it to their ideal design and select their preferred builders.
House and land packages offer you the option to customize your home. House and land packages and turnkey solutions are one of the easiest and fastest ways to buy a home that can suit a family’s needs.
A turnkey house and land package is exactly what it sounds like – it’s a home where you can turn the key in the lock and move right in. They’re also known as ‘move-in ready’ or ‘complete’ new homes. Turnkey homes offer many fantastic benefits to buyers. They are as listed below:
- internal painting
- floor coverings
- air-conditioning
- blinds
- fencing
- landscaping
WHAT ARE THE DISADVANTAGES OF A HOUSE AND LAND PACKAGE?
Lot Size
With developers trying to get bang for their buck, lot sizes for house and land packages are often smaller than buying land separately. This may mean your house will be smaller than you envisioned or you may not have the backyard you want.
Location
Most house and land packages are often located in the suburbs and not in a well-connected area. This may be problematic since job options and public transportation are often few in the outlying suburbs. As a result, financial improvement is often more difficult to come by.
Lack of Choice
Choosing a pre-designed home from a catalogue of options is simple, but it’s not for everyone. Although most home and land packages allow you to alter the design and add amenities that are uniquely yours, they don’t allow you to create your home from the ground up. If you’re looking for a distinctive design or unique functionality, a package won’t work for you.
Reach out Today
Learn more about how Greenshoots Wealth can get you into the house of your dreams. Contact our professionals today to learn more about house and land packages that suit you. They can answer any questions as well as set up an appointment. Our team will work with you from the beginning of the process to the end to get you into the home you have always wanted.
