If you're looking to get your foot in the door of the property market soon, you may be wondering what do house and land packages include? Or, perhaps you haven't been able to find the right established home and you're looking to build your dream home from scratch. Whatever your reasoning, a house and land package may be just the thing you're after. Need some more information on house and land packages and what they include? Read on.
What is a house and land package?
House and land packages include the land that you're looking to build on, as well as the house that you have chosen to build with your developer of choice. A large portion of new homes are built by property developers who buy land when it’s released from the government. The developer puts in all the infrastructure (roads, water, sewage and utilities) and then offers them to purchased as a complete new home and land package or you may be able to select the type of home design that is built on the land.
A house and land package allows you to combine the process of finding your land and house all into one easy to complete process. If the house is already built, then it can be purchased on one contract once it is registered.
Alternatively, if the land is vacant, you’ll have two contracts (and two loans), one for the land purchase and then a second contract & loan for the construction of the house.
Buying a house before it's built
A great perk of buying a home before it's built is the option to customise it to your personal preferences. You can opt for an energy-efficient home or include luxury fittings from the get-go. It's also comforting to know that future repairs will be minimal due to you being covered by the builders warranty.
What is the process of buying a house and land package?
The process of buying a house and land package doesn't have to be complicated.
Begin the process by finding yourself a developer offering house and land packages that suit you and your budget. Have a look around the area that you're hoping to build in as many developers will have specific areas that they do and do not build in. Developers are going to offer different home designs, inclusions, optional extras and lot sizes, so be sure to have a look at a few different developers to find the right ones for you.
Visit a display home to see if it's the right choice for you. Most developers will have a display home that you can go and visit. This is a great way to see if you like the finished product and quality of work. It's also a fantastic time to get some further information from the developers, such as build time, inclusions and exclusions, the approximate cost of running the home and the possibility of making adjustments to standard home plans if you want to make some personalised changes to the layout.
Do some checks on your potential builder before signing any contracts. It's always a good idea to do a little research into the builder's history. Ask to see photos of recent builds or see if you can speak to recent clients to see what their experience with the builder was like. In your own time, it's also a great idea to double-check that they're licensed and insured. This could save you a lot of stress in the long run.
Budget for associated costs of building a home. Your budget should always account for stamp duty, registration fees, solicitor or conveyancing fees and any other government fees that could be applicable to your area or state.
Talk with a mortgage broker like Mint Equity to find out if there are any government grants for buying or building a new home. The $10,000 First Home Owner Grant (New Homes) Scheme is available for eligible purchases of land and home of up to $750,000.
Compare inclusions from different builders, as it can be confusing to compare apples with apples when it comes to the inclusions offered in your new home. Key items to compare are;
- Ceiling heights (2.4m or 2.7m)
- Tiling to bathrooms, either just around the wet areas or full height tiling
- Flooring options, do they include laminate timber floors or just tiles
- Alfresco areas often just include the slab and not the tiles
- Façade options, make sure you know exactly how your property is going to look. Many builders only include a rough bag render, not a full render.Get your solicitor to check over the contract. Having a legal professional experienced in property sales check over your contract is an important step in the process. They'll be able to spot any discrepancies that may be included and check for all the necessities to ensure that your home building venture is a smooth one.
Who should buy a house and land package?
House and land packages are a great idea for a lot of different people. If you're someone who is looking for an affordable property, wants to know the approximate costs beforehand and wants the ease of combining the process into one easy transaction, then buying a house and land package could be a great option for you.
Just remember, you’ll still need to make repayments on the land and the progress payments on the construction while you continue to pay rent, so having a good cash flow to support the construction timeline is crucial. Talk to your mortgage broker to find out how much money you’ll need to cover your living arrangements while the property is under construction.
Whichever developer and builder you decide to go with, choosing to build your own home is a big decision. Do your research carefully and you'll soon be on the way to owning your very own, brand new home.
Find a local Central Coast mortgage broker
Before you go house shopping, find out what your borrowing capacity is by speaking with a Central Coast Mortgage Broker like Mint Equity. Call us on 02 4340 4847 to find out how much you can borrow.