Should I Buy a Home and Land Package?

Have you ever thought about purchasing a home and land package? The packages can be a great investment because you are acquiring both the land and the construction of the home in one purchase with a fixed amount. It is two separate contracts with a combine price, however, there are two types of packages.

  1. Build homes and sell them as a complete house and land deal
  2. Offer a choice of land and the buyer can choose the features you would like in your new home

If you want to build your dream home and design it yourself, it can turn into one of the best assets in your life. The initial purchase includes buying a ‘lot’ of land and then selecting a builder and home design, however, once you become the owner it is your responsibility for the upkeep of the property. The deposit can be difficult to understand but it will be around a 10% deposit for the land unit and a 5% deposit for the building contract.

What’s Included?

  • A kitchen and bathroom
  • Windows and doors
  • Built in robes
  • Electrical points
  • TV and phone points
  • Fans
  • Stairs and tiles

These are the items included in a standard land and home package; however, you can get extras and a bigger cost.

Extras Can Include:
  • Driveway
  • Fencing
  • Landscaping
  • Carpet

What To Look For

When you are choosing a home and land package deal, there are a number of questions to ask yourself which include:

  • Does the place suit your lifestyle and your ideal neighbourhood?
  • How long does it take to get to work?
  • Is there a good public transport system or good schools around?
  • Is the size and shape of the lot what you were looking for?
  • Have you looked at the developer’s credentials?
  • Is this the right builder for you?
  • Is the layout what you expected?

Benefits To Home and Land Packages:

  • Flexible

You are able to acquire a property that suits your needs.

  • Budgeting

Knowing how much you are paying all together before the property is created allows you to plan your finances.

  • Low maintenance costs

The building you are buying is new, there would be little repairs that need to be done.

  • Environmentally friendly

Due to you building your own property, you are able to install items such as solar panels to save the climate and save you money.

Limitations

  • Located on the outskirts of the city

Most developmental areas are located further away from the city.

  • Uncertainty

 Due to the fact you are paying for your land as well as the house, you won’t actually know what you are getting until after the development is finished.

  • Building surprises

There is no guarantee that what you are paying for is what you will get in the time frame expected, there could be delays and it may take more time than expected.

  • Inability to add value

The building you are purchasing is brand new, if you wanted to flip it in the market, there is little possibility of adding extra things to it.

  • Price doesn’t include power, water, gas and the internet

When you are buying the property, you need to also pay more on top of the original price for the installation and acquisition of power, water, gas and the internet.

Process

  1. Discuss what type of deal you are looking for and your budget in regard to the type of property and location
  2. Discuss what features you are looking for in a property with your sales representative
  3. Make sure every detail is clear with your sales representative so there is no miscommunication 
  4. Discuss home finance

If you need help securing finance for a home and land package, feel free to contact us. We can offer advice on improving your credit score to receive the best interest rate possible and work out how much you need to spend. The first consultation is free!

Call: 039545 6552
Email: info@ecbsolutions.com.au

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