Owning a new home is most people’s dream and there are many options to accomplish this. You could purchase a turnkey situation where you just purchase a home when and then move into it once built, but there are other options.
There are plenty of ways to get into home ownership and if you want land also, a house and land package could be the right choice for you. You may be wondering if you can save money when you decide to purchase a house and land package.
Let’s take a closer look.
House and Land Packages are Usually Quite Affordable
You may be surprised about the affordability of house and land packages. When it comes to locating affordable options, you will want to work with a developer that is offering house and land packages.
You may have looked at as built homes in the past and decided that it would cost a lot of money to purchase one and then renovate it to become what you want in a home.
The best part of house and land packages is that there are so many choices and options that you can access to personalize the home and make it 100% yours.
When you purchase a house and land package the developer and builder might have a deal in place where the cost of purchasing the home is much more affordable and comes with many extras.
When you compare the cost of an existing property and a new home where you can have your own personal options and tastes incorporated into the home as it is built.
You could also have a basic home constructed and then you can have upgrades where you ensure that the home is customized to what you want.
Look in Areas Where you Want to Reside
If there are areas where you want to reside it makes sense to choose to look in those areas to see what is available when it comes to land and house packages.
Certain land developers will purchase plots of land in as many areas as they can and then start with the process of subdivision and choosing a builder. The builder will then present several designs that fit within the parameters of what the developer is looking for.
If you want to reside in an area where a developer has purchased some land, you can take a look at what options they offer for land and house packages and then find out the price points.
Once you have done that, it is up to you to decide whether you want the turnkey package with the home built in advance or the vacant land package where you can then choose the house you wish to design.
There are usually specific homes and builders that the land developer works with that you will have the option of choosing from.
Either of these options is great and are each an affordable way to be able to purchase a new home. When you purchase the lot and house package the price generally can come in under the average median house price.
If you purchase land and then decide to build later, it can save you quite a sum on the stamp duty because stamp duty is only applicable on the value of the land. The First Homeowner Grant is usually available only for homes that are newly built.
Purchasing a House and Land Package / First Home Buyer
As a first home buyer when you want to buy land and build a home on it, you can purchase with as low as a5% down when you are using the First Home Loan Deposit Scheme Guarantee.
When you purchase a house and land package and have a separate contract for the building of your home, you could be eligible to apply for any one of the 10,000 areas eligible in this scheme.
If you do qualify for the first home buyer grant you will be obliged to commence building within six months of entering a contract and then complete the building within 24 months.
You must be ready to move into the property within six months of the issuance of an occupancy certificate. There are some pros and cons to be aware of when you are considering the purchase of a house and land package including:
Small Lot Sizes – some developments may have smaller lot sizes in order to keep their house and land packages lower priced and therefore more attractive to potential buyers.
As a buyer, you will need to consider the best placement of your home for the best of everything including privacy and sun exposure.
Hidden Costs – when you start to look at display homes remember that there are going to be extra costs in a package that you choose including landscaping.
You want to check in with the builder to get all of the details on what is included in the price that you are quoted. You will want to know just what you are getting for the price of what you are purchasing.
Does the Location add to the Cost of Transport? If you purchase a house and land package that is in an outlying area this could translate to a longer commute during weekdays if you work in the city.
You could be adding to your transport costs in that you need to spend more money to get to work.
Traveling to and from work can add up very quickly when you are several kilometers away from your workplace, especially if you are sitting in heavy traffic.
Extra Costs – When you purchase a house and land package it offers many opportunities for the alteration of the design of your home. You will have the opportunity to customize a building that will suit your lifestyle and the area.
Any deviation from standard designs will increase the cost of the build. You will want to ensure that your budget can deal with the output of extra costs which will definitely come if you move away from the original plan.
Consider Pre-approval
When you work with a preapproved amount you have a better understanding of what you can afford. You should meet with a financial expert early in your process so that you do not face disappointment when your finances do not meet up with your wishes.
You do not want to look at certain areas that you like only to find that the prices are too high and out of your price range. When you understand how much money is at your disposal then know exactly how much you are able to spend / can afford.
A good financial expert should be able to explain your complete borrowing power to you and offer you a starting point so you have an understanding of what you can afford to spend on a new home.
Pre-approval on a home loan can help you to decide whether or not you have room in your budget to make changes and customizations to the design of your home and change up various elements of your home.
A financial professional can help you to find a loan that is right for your specific needs, so you have the option of choosing a turnkey package or a complete land and home deal.
Ready for that Next Step?
When you sign up for a house and land package, that is a big step. You want to know all that is involved in every step along the way. The incentives should be easy to understand, and you will want to know how the process works.
You can meet with a land and house package vendor once you know the area that you want to live in and the amount of money you have been preapproved for.
The Final Step
Finding the house and land package is that final step and once you have your financing in place, it is simple to start looking. Once you find your house and land package and have signed the purchase paperwork, you have an official contract in place.
With that, you can have a discussion with the builder on what to expect. There are various stages in the building process that require your input and you will be working closely with the builder.
You will need to be available to make decisions along the way, so be sure to keep in touch. You will enjoy the fact that you have the power to make some choices and have a say in the design and build of your home.
If a house and land package sounds great to you, then you can start the process in your local area after you have obtained the necessary financing. It is always good to start at the beginning so that you have an awareness of the amount of money that you can obtain and know what you are working with.