Buying A House And Land Package
Searching for a dream home in the perfect location can be an exciting but stressful and time-consuming activity for many home buyers. Bundling the home and land loans into one package provides an affordable way for you to find the best home in the best location for your needs.
buying a house and land package
House and land packages offer an affordable home loan solution, allowing you to bundle the financing loans for the house and land. Most of the new home construction taking place currently is largely being completed by property developers. This leaves you with the option to choose a block of land and build the home you want to live in or add to your investment property portfolio.
While you may choose to finance each loan through a different lender, combining the loans allows you to have separate but simultaneous contracts with both the land developer and the housebuilder even if they are from different businesses.
Available house and land packages can be found advertised in multi-listing websites or directly through your chosen developer. If you are looking to purchase land in an established estate, this provides you with an opportunity to speak to homeowners in the area and get a feel for the neighborhood. Online reviews and previously combined estates are a good way to assess the reliability and quality of the homes made by your chosen developer and can help avoid costly mistakes when building a new home.
Obtaining a loan for a house and land package is very similar to taking out an ordinary home loan and is offered by many major banks and non-bank lenders. The bank will require the same checks and balances before you can obtain a mortgage, this will include a valuation on the land and an outline of the proposed home structure.
The mortgage loan will be subject to the same terms as a normal home loan. A lump sum will be borrowed and you will be charged a fixed or variable interest rate depending on the financial institution you choose. Comparing the interest rates, fees and features of the lenders on offer will ensure you achieve the most affordable loan for your house and land package. If you need title cash or any additional funding to build your dream home, consider applying for a title loan.
When considering a house and land package it is important to be aware that most lenders will require you to pay a deposit for both the home and land loans. This should be taken into consideration when choosing which financial institution to provide the loan. It is also important to ask the building company about what is included in the quoted price, to ensure that there will be no surprises and additional fees included for standard features.
The house and land package is becoming increasingly popular among home buyers and property investors. Seeking advice from a trusted financial advisor and home builder is the first step towards achieving an affordable home loan.
House and land packages are often tailored to appeal to a specific group of buyers. You might find the one you want in a golfing estate, retirement village or even an eco-village. Then there are the new subdivisions, with opportunities for investors or first home buyers.
With house and land packages, you may be restricted from making alterations to the exterior. The interior is no problem, but the exterior has to be preserved so as to maintain uniformity with all the other houses in the subdivision.
Purchasing a house and land package provides many of the advantages of custom construction but eliminates most of the hard work. There are numerous advantages to purchasing a home and land package, which include the following:
Compared to buying an existing house, purchasing a home and land package may be cheaper. Unlike purchasing an existing home upfront, you have to settle a little fee or an initial payment on the property when you construct your own.
It may also take a long time to settle the traditional way since they often carry higher interest rates when buying a property. However, you may save funds on a home and land package by acquiring one that comes with a specified value and no unexpected extra fees.
Most house and land packages are often located in the suburbs and not in the city center. 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.
A house and land package loan will typically have different requirements than a standard home loan. Before beginning to apply for a house and land package loan, it is important to assess your financial situation.
With a house and land package, it is bundled together, i.e. when you purchase the land; you choose from any of the standard or customised home designs instead of waiting for a builder to finalise the designs and build your home.
House and land buyers typically apply for a combined loan for both the land & building the house. At land settlement, the remainder of the land contract price and stamp duty is due, and the bank will release this portion from your approved loan amount. Once construction commences, the builder will issue an invoice at the end of each construction stage (as outlined above). You will need to pay your portion first (i.e. the difference of the remaining build contract price and loan amount) if applicable, and then the bank will release their portion of the funding towards each progress payment.
House and land is a popular option for first home buyers and upsizers. For first home buyers, buying a house and land package can come with certain government incentives, such as first home buyer grants or lower stamp duty fees which are generally applicable to new or off the plan property.
In our experience, finding the best house and land options comes down to fundamentals like a great location: proximity to transport, retail, education and other quality amenities. Parks or playgrounds can be a key factor as well, given that housing estates appeal to families.
As part of our service to customers, the property team conducts a rigorous due diligence process, covering off all the above considerations, along with many more, to make the purchase of house and land as simple and convenient as possible and to provide additional peace of mind for buyers.
A house and land package can be a good option when you are looking to buy your home.Watch our video to understand the benefits and risks of choosing a house and land package to buy your home and understand if it's the right choice for you.
House and land packages are typically available in outer suburban locations. This can mean a long weekday commute if you work in a city centre. Australians already spend around 13.8% of household income on transport costs5, and if your new subdivision has limited public transport options, the cost of travelling to and from work can quickly add up.
You may be aware of new estates popping up in your local area, but you can also find house and land packages advertised on major real estate listing websites. However, reaching out to property developers directly can help you find the right package and can be more informative.
Be sure to shop around, investigate other estates they have developed, and explore all the packages available by various developers. There are a lot of questions to ask when buying a house and land package, so make sure they are answered by your developer.
House and land packages have basic finishes, but if you want to enhance the appearance of your home to show-off your personal style, these upgrades will incur an additional fee. For example, you might choose to:
Key benefits of buying a house-and-land package are that you get to choose your house design and internal fit out, and you only have to pay stamp duty on the price of the land, not the value of the house.
Visiting housing display villages in new land developments is a great way to research house-and-land options and to compare them with the cost of buying an established home. A good first stop when visiting a new land development can be the developer/land sales office where you can review a map of the development, and find out about the types of public and community facilities that may be developed in the future. At display villages you will learn about the house designs available from different builders, what is possible to buy in your price bracket and you can get a feel for how different housing designs can suit you and your family.
The more research you do and the more questions you ask, the more you will understand about the house-and-land buying process. Choose a building company you feel comfortable with based on upfront discussions with their staff to minimise the risk of surprises during the construction process of your new home.
If you have already signed a contract to buy a piece of land, it is important that you provide all the relevant details to the builder such as the location, its orientation, the size (width and length) of the allotment and whether the block is sloping or flat. This will help the builder advise you of how to determine the most appropriate house design. Providing the builder or sales consultant with a copy of the land sale contract is often a good idea.
With a house and land package you should know exactly how your home should look. Confirm with your builder when you are allowed on site to inspect progress and ensure that everything is matching the drawings that you have signed off on. This will help to identify mistakes early which can be expensive to fix later.
House and land packages combine home and land loans into one package to provide an easy and affordable way to find the best property to suit your needs. Through this process, the buyer secures both a block of land and then the construction of their home in two contracts but one streamlined process. For Australia buyers, this reveals the combined price of home and land from the outset.
House and land packages often come in fixed price packages that lock in the price for the construction of the home as well as the land, eliminating the surprise of additional costs. This package offers buyers the best of both worlds: their perfect location and then still being able to design their dream home from literally the ground-up. 041b061a72