Todd Nesnick
People dream of owning a new home and want to explore their options so that they can make their dreams a reality. One option is to purchase an already built home so that you can just move in once it has been completed. There are other options if you want to own a home and land. A house and land package can save you money, and there are many facets to this option.
House and Land Packages Affordable
Believe it or not, a house and land package may be an affordable option if you are looking to buy a new house, and have it built for you on a plot of land that you have purchased. Builders often purchase large tracts of bare land, subdivide the land into lots and service them, preparing them for buyers to be able to choose from several home plans and then have a house built for them. The option of having a home built for you means that you have some choices when it comes to interior and exterior design.
Purchasing a house and land package is a more affordable option than purchasing a bare lot alone and then trying to build a home on it. The home that will be built on the land is often more affordable than a traditional home and allows you to choose certain upgrades and customizations.
Start Searching in an Area You Love
Everyone has areas that they want to live in. Therefore it makes sense to look for a house and land package that exists in those areas where you want to live. Some developers will purchase land in many different areas and then start to service the lots while they are looking for a builder with which they can work. The builder will usually offer a few different home designs that the purchaser is able to choose from. A purchaser can then look at designs that fit into the area they want to live in and then they can also choose the home design.
There are usually a few homes within several price points that help you to make a decision on your home design. Some builders work with only with certain developers, so if there is a certain builder that you like then you will want to look for projects that they are working on in the area you want to live in. Having a home built for you is an affordable option that allows you to enjoy a new home. A house and lot package are often priced lower than the average as built home. You may also be able to purchase land, leaving the option open to build on the land at a later time. You can save money on stamp duty because that is applicable only to the land value. If you are not now or never before a homeowner, you may also be eligible for a First Homeowner Grant on your newly built home.
Buying Your House and Land Package as a First Time Home Buyer
When you are a first-time home buyer you will be able to purchase your House and Land Package with as little as 5% down on the price using a First Home Loan Deposit Scheme Guarantee. If you fit into the first-time home buyer grant, then you have some deadlines to meet. For example, you must start building your home six months after you have entered into a contract and complete that process within two years. Once building is completed and you have an occupancy certificate, you must move into your property within six months of that date.
What are the Drawbacks to Buying a House and Land Package?
- Extra Costs – when you look around at display homes you should keep in mind that there are hidden costs that will be on top of the cost of the house and the land. You will need to check in with the builder to ensure you are aware of all of the details on what is included in your purchase price. Often you will find that landscaping and finishing interior details are extra.
- Reduced Lot Size – certain developments keep the lot sizes small so that they can offer lower priced house and land packages which will attract more potential buyers. When you are purchasing a lot, make sure you have a good understanding of the lot size and placement of the house to be built on the lot. You will want to ensure that your home is built in a location that offers the best privacy as well as sun exposure.
- Will it Cost Extra to Get to Work? When you purchase a house and land package in an outlying area then it could mean that you have a longer commute if you live away from your workplace location. This could add to transportation costs and will mean you need to spend more money to get yourself to your place of work. The costs of travelling to and from your workplace can add to your monthly bills and if it means you are sitting in heavy traffic daily it could add to your stress.
- Extra Costs – purchasing a house and land package often means that there is a basic package that is included in the construction of your home. You will have some opportunities to customize the building but if you want extra or different, it will increase building costs. This could quickly put you out of range of your budget and this could increase the cost of your build substantially.
Pre-Approval Can Help
When you know the amount of money you are pre-approved for, it helps you to stay within a budget because you have an understanding on what you can afford. Make an appointment with a financial professional before you start to look around at homes and properties. Meeting with a financial professional early in your process can help you to avoid disappointment when your finances do not meet with your expectations. This will help you to make better decisions by being able to look in certain areas and knowing which areas to avoid due to affordability issues. Your financial professional should provide you with an understanding on how much borrowing power you have, a starting point on what you can spend and if there is room in the budget for changes and customizations when it comes to the completion of your home. Your financial professional can match you up with a product that is right for your needs so you can choose a house and land package that fits into your budget.
So, What’s Next?
It is a big step to purchase a house and land package. You will want to know what all of the steps are that are involved in the purchase and building of your new home. Make sure you read the fine print in any contract that you are required to sign along the way. It is always a good idea to take a contract to a lawyer to have them help you with the details. Once you know how much money you are approved for, you can begin to look at properties in areas where you would like to live. This is one of the most important steps, because if you purchase in an area that you do not like, you will not enjoy living there.
What’s Next?
Once you have finalized the purchase of your house and land package, you can meet with the builder to find out what to expect. There are many stages in the building process where you will be required to be closely involved with the builder. You should be available for all of the decisions that need to be made, so keep in touch with the builder. It is enjoyable for some to be in power and make choices. Having a say in the build and design of your home is a good feeling. If you find that the prospect of a house and land package is something that you want to undertake, then purchasing a house and land package is the right option for you.
You could save a great deal of money when you buy a house and land package. One of the main reasons is that you know exactly what you are getting when you purchase the package. You can get a new home in a location that you want to live in, and it is built to your specifications and tastes and there are no renovations involved. If you were to purchase an as-built home and then spend money renovating it, you could very well spend as much or more money than if you had purchased a house and land package. In short, it is cheaper to purchase a house and land package when you consider all of the extra costs of buying an already built home. Not many people think about the big picture, but this is one way you can get a new home and save money at the same time.