On the surface, purchasing a house and land package appears straightforward, however there are a few things to take note of when making a choice.
Location & Package
Start by narrowing down the areas you would like to live or invest in. Spend time researching the developments and estates and what they offer in relation to facilities, open space, access to main roadways and services such as schools. Once you have narrowed down your options, compare the house and land packages in regards to land size, inclusions in the build of the home, home designs, and freedom to personalise.
A large part of the appeal for house and land packages is the ability to build to your individual design tastes. Working out the number of bedrooms you need is just the starting point. Some developers offer buyers a huge range of options such as different splashbacks, appliances and stone benchtops in the kitchen alone.
Many estates also have strict covenants for design choices such as fencing, paint colours, driveways and exterior finishes, while some even dictate a list of approved builders. With the move towards eco-friendly building becoming mainstream, many developers now incorporate or require environmentally friendly materials and features as part of the package.
Before making a final decision it is always best to visit the range of display homes on site and get up close to the kind of home you will be delivered at the end of the day.
Finance is the most crucial piece of the puzzle. While many lenders are happy to offer finance for house and land packages, how the finance is bundled, and the deposit required varies from bank to bank.
Seek pre-approval prior to shopping around, and be sure to find a package with a set price within your budget. Also take the time to finds out any state government grants or tax cuts you may be eligible for, as it could save you thousands of dollars in the long run.
Many lenders suggest holding a 10% buffer in case of unexpected delays or changes during the build process and if you have not allocated for this with your bank, you will need to find the money to continue to the final stage.
It is for this reason buyers should always understand exactly what is included in their package, and what is not included, as many aspects of a completed house and land packages are considered extra. Get a detailed breakdown and look over the contract carefully before signing the dotted line.