The ins and outs of house & land packages

Oct 19, 2014

Buying a house and land package simplifies the process of getting a brand new home. It also offers a number of attractive features, making it a good option for both owner-occupiers and investors.

So whether you want to build your dream home, or buy an investment property that is low maintenance and appealing to tenants, it’s worth taking a closer look at house and land packages.

A complete package deal

When you buy a house and land package you buy both the land and a property to go on it. Sometimes the property is already built, but other times you will be able to choose the land and house design that suits your needs and budget.

In every case, the house designs have been chosen to make the most of the size and aspect of the land. This simplifies the decision process for you by removing the dizzying array of alternatives – which can be overwhelming and time consuming.

Choose your optional extras

While every house and land package offering is different, you often have the opportunity to choose some of the interior and exterior finishes before construction begins. This may include things like the brickwork, floor tiles, wet areas, kitchen bench tops and splash backs. Changing a few bits and pieces here and there allows you to add your personal touches to your final house.

The property developer should be able to tell you the full cost of all the standard inclusions upfront. This will make it easy for you to work out what you can afford and help you avoid budget blowouts.If you make a few changes to the house features and finishes, the builder will advise any variation costs.

One package, two contracts

If you decide to buy a house and land package, it’s important to note that behind the scenes there are in fact two contracts – a land contract and a construction contract. So financing a house and land package typically involves two separate loans.

A regular mortgage is suitable to purchase the land, however, it’s a good idea to get a construction loan for the house. This allows you to draw down money when you need it for each stage of construction rather than having to pay interest on the entire amount from day one.

How to get the right package for you

Here are some basic questions you should ask yourself to work out if a house and land package is right for you:

  • Am I happy with the location of the property?
  • Do the house inclusions meet my needs and budget? For example, does it include fencing, driveway and air conditioning?
  • Does the property developer have prior experience with house and land packages? Can I get references?
  • Does the builder have the appropriate level of building insurance?
  • Does the contract include all costs so I’m not hit with any unexpected costs at completion?

If you’re interested in house and land packages, take a look at Legacy Property’s latest release at Greenway.