House & Land Packages
Ever thought about getting the whole lot in one deal?
What is a house and land package?
Most new homes these days are built by developers who acquire land when it’s released by the government. The developers lay down infrastructure (roads, utilities, water and sewage), then either:
One benefit of going this route is that you will get a new home that has been built with your needs in mind. Buying a new home can also help you plan your finances with confidence, with low maintenance costs and no major repair expenses on the horizon.
How do you find a house and land package?
Land packages come in different sizes and niches. From Golfing estates, retirement villages, first home buyers to eco-villages, there are a variety of options available. Most are advertised on websites such as reiwa.com.au or directly with the developers themselves.
One pro-tip would be to check out any other estates the developer has been involved in, have a walk around and get a feel for the vibe and quality of the builds.
Is buying a house and land package purchase any different to buying a house?
Obtaining finance for a house and land package usually consists of two steps: buying the land then building the house. The loans can be arranged separately, but are usually banded together.
Buying the land is a standard real estate transaction with a standard residential mortgage. The second step requires a construction loan where you ‘draw down’ an agreed amount to pay for each stage as your home is built. You can read more about construction loans on our website.
What are the other considerations?
Ask what is included in the package for you. Some are fully turn-key, others are not. Its best to know as there could be other considerations that you need to factor into your budget. Some builders will also include special incentives such as a full solar energy fit out, so keep an eye out for companies running some of the good deals!
It’s a good idea to be conservative with your budget. If there are shortfalls in the valuation of the property, you may need additional funds to cover the cost of the construction or land purchase. It is always best to leave a sum aside as an emergency fund just in case costs increase.
Lenders might also require that you pay the initial invoices and only start releasing funds from the construction loan when there’s evidence that you’ve used all your deposit and additional funds. This is so they can be sure to ration out enough funds to finalise the build.
Are there any grants for new house and land packages?
It’s different in most states, so always check your state government website for its up to date information. Benefits can range from grants through to stamp duty concessions.
Thinking of buying a house and land package? Speak to one of our knowledgeable team today!
