Not all house and land packages are created equally. There are two main types of house and land packages – a turnkey package, and a standard package.
Both are part of new build developments and are brand new homes, however a turnkey package is ready for you to ‘turn the key’ and move in straight away.
Turnkey packages do not offer the same level of customisation as a house and land package where buyers work directly with the builder to design the floorplan, as well as internal and external fittings and fixtures. Instead, they remove the stress of choosing a builder and selecting all the finer details and deliver a home at a fixed price.
Finance is also arranged differently for turnkey packages. Loans for house and land packages are traditionally two contracts (one for the land, the second for the house build), and are delivered in stages based on construction.
A turnkey package loan is still made up of two contracts, however they are released to the developer together as the price is fixed and construction is managed by the developer rather than the buyer. Unlike many house and land builds, with a turnkey package there are no extra charges due to a builder underquoting or going over schedule.
And while this option means less stress in the end, there are still a number of steps every buyer should take to ensure they are happy with the final product.
Make the Right Choice
Do your research and ensure the area and developer have a solid reputation and ask to see other completed homes as an example of the final product. Investigate the area and its access to services such as schools, public transport, hospitals and shops as some developments are not as connected as established suburbs.
Compare what you are considering to similar properties in the area, and speak to an agent about the potential resell value. Be sure you are paying a reasonable price for what you are ‘turning the key’ in at the end of the process.
Not all Packages are Equal
Make sure you understand what you are getting and what is agreed upon in the contract. Are there steps to delivery? What are the timeframes? Is there anything not included?
Not all builders have the same understanding or definition of a turnkey package and you may find yourself without a driveway at the end of the build.
Ask Questions First
Never rush into a contract. Be sure to have the contract and agreement looked over thoroughly before committing. There are specialists who manage the sale of house and land packages, so seek advice and ensure you are ending up with your dream home.