What is a house and land package?
Let’s set the scene. You’re looking for a new home; it’s equal parts exciting and nerve wracking. Exactly how you thought it would be. But what you didn’t expect was how hard it is to find the home of your dreams. If you’re tired of tirelessly house hunting for the ideal home (or you don’t want to go through the arduous experience at all), house and land packages may be the perfect solution.
What are house and land packages?
A house and land package, also known as a home and land package, sounds just like what the name implies. Buyers can purchase a parcel of vacant land and have their home custom built on top of it all in the same contract or deal. Instead of having two separate contracts, one for the land and another for the home, it’s all combined into one neat package for a more streamlined process.
With a house and land package, you eliminate all the extra effort and paperwork that goes with buying land and hiring a contractor to build your dream home. Because it’s so convenient and streamlined, a lot of homebuyers are opting for a home and land package deal.
You can also buy an already designed house with a house and land package. It depends on what’s being offered.Often, the property developer will provide you with a variety of house designs to choose from with the option to further customise depending on your preference and budget.
Where can I find house and land packages?
Usually, home and land packages are available in new housing estates or residential housing developments by property developers. Some housing estates cater to specific needs and interests like a retirement village, golfing estate, eco-village, and the like.
You can check out property developers in your area or neighbourhood you’re interested in to see what your options are. Or discuss your options with your real estate agent.
When looking for the right house and land package, make sure to do your research on the property developer and the builder. Look at their most recent projects to check their track record.If there are already occupants in the housing estates, ask about their experience or look at reviews online so you know what to expect. Make sure to find a housing estate that meets the needs of your family and your budget.
What are the advantages and disadvantages of a house and land package?
Like any property purchase, there are certain pros and cons you need to be aware of. Keep these in mind to ensure you get the best possible deal:
Pros of a house and land package
- Fixed price – The price of the land and construction package are bundled into one so you’ll see your total expenses on the onset even before the purchase. This gives you a clear picture of what your home purchase is going to cost you.
- More streamlined purchase –By combining your land and house build in one deal, it cuts the home and land purchase time by half. No need to find vacant land and search for the perfect contractor. You’ll have the ideal location while being able to design your dream home as soon as possible.
- More cost-effective – Home and land packages are usually cheaper compared to similar established homes. You also won’t have to pay double the fees with just one contract.
- Less maintenance – Newly built homes typically require less maintenance compared to established ones with a lot more wear and tear. You can also rest assured that the foundation is in good condition and none of the appliances or furniture are past their warranties.
- Less compromises – Since you’re building a home from the ground up, you can make it exactly how you want it. This is also less costly compared to making renovations to an established property.
Cons of a house and land package
- Less options on location – Because home and land packages are typically part of housing estates, you may have a harder time finding the perfect neighbourhood as there are less to choose from.
- Set designs and builders – You may only have a few house designs to choose from so the neighbourhood can have a cohesive architectural design. The same goes with builders, as well.
- Building delays – Like any house construction, there may be building delays because of weathers, material supply issues, and the like.
Understanding the pros and cons above will help you make a more informed decision. Think about what you want in a home and see if the benefits outweigh the disadvantages.
How can I finance my house and land package purchase?
The financing is pretty straightforward involving buying the land your property will sit on and then the construction for the house. You can take out two loans, a home loan and a construction loan, to finance your purchase. Or you can bundle your loans together ifyour lender allows it. Usually, you can alsotake out the loans from the same lender.
The home loan will work as your typical mortgage while the construction loan is paid as different phases of the construction is completed. It’s unlikely that you’ll have to go to extra steps to get your home and land package purchase financed. Lenders are generally familiar with these types of properties and likely have due process in place to make expedite the loan applications and approvals.
You can also check out different home buyers’ grants available to you. The federal government, as well as state and territory governments have plenty of grants, stamp duty concessions, tax exceptions, and the like to help you finance your purchase.
Can I negotiate the price of my house and land package?
The price of your house and land package could fluctuate depending on the additional customisations you may want to add. At the end of the day, it never hurts to ask. Discuss with your builder and the developer if they can offer any extras for free or an additional discount. Their answer will likely depend on the current real estate market. If the market is cold, builders and developers are probably more open to negotiate.
What are the steps to buying a house and land package?
Here’s a quick overview the house and land package buying process:
Step 1: Do you research
Look into the developers and builders to see if you like their style and gauge customer satisfaction of other housing estates they’ve developed. Check out the area the housing estate is located and make sure it’s accessible to essentials like shops, schools, work, public transportation, hospitals, and the like.
Research different types of home and land packages too. Every developer provides their own features and deals. Don’t just stick to the first one you find. Shop around and compare prices to ensure you get the best deal.
Step 2: Talk to the developer
You’ve found your ideal housing development, now you need to talk to the developer and get the specifics. Look at the costs, build time, and any additional fees. Read the fine print of the contract carefully so there won’t be any nasty surprises down the line.
At this stage, you need to ask all the questions you can. Ask about possible customisations, additional costs, possible delays, and more. Discuss different home designs and what’s included in the house and land package like fencing, fitting, and whatever else may be unclear.
Step 3: Get your financing in order
There are a couple of ways you can go about financing your home and land package purchase. You can get pre-approval first to guide your budget before you set your sights on a home and land package. Or you can seek out a loan after you receive the final quote from the developer so you know how much you should be asking for.
Either option you choose, it’s vital to check out different lenders to find the best rates. Talk to different lenders and compare their rates so you can get a good deal.
Step 4: Make sure the build is going according to plan
Stay in touch with the builder and ask for updates about your home build. Go to the site regularly so you can see the progress for yourself. During your onsite visits, make sure that all the features are installed the way you’ve discussed previously. Miscommunications happen, the best way to deal with them is by checking up with your builder regularly so everyone stays on the same page.
Step 5: Make final inspections
Have the home inspected by a professional. Just because your home is new doesn’t mean it’s free of any faults, issues, or errors. An independent inspector can spot any problems that the builder may have missed.
A professional inspection is a precaution you want to take to ensure your new home is move-in ready. It’s better to find any issues now instead of five years later when fixing them becomes more expensive and the builder warranty has run out.
Step 6: Move in
After you’ve signed the important documents and there are no issues found in your new home, it’s time for the best part of a home purchase—moving in! Grab your keys and make yourself at home in your new property.
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