While house and land packages are becoming more highly sought after by homebuyers, many people are still confused by what exactly a house and land package is and whether it’s better value than buying an existing home.
Here are some myths about house and land packages:
House and land packages are more expensive
House and land packages are often more affordable than buying an existing home.
A house and land package will be displayed with a single price, which includes the land price and construction costs. The package consists of two contracts combined to secure the land as well as the home.
With a house and land package, buyers are generally required to pay a 10 per cent deposit on the land and a five per cent deposit on the building contract. While most developers require you to pay for your land before building starts, you don’t start paying interest on the full mortgage straight away, giving you more time to save.
New builds don’t necessarily cost more than buying an existing home. Building new means you are less likely to need expensive renovations for many years. With house and land packages, builders are required to offer a building guarantee and warranty to cover any structural repairs in the first six years. Buyers may also have more negotiating power with builders in regards to finishes and fixtures to get the best quality possible.
When building a house and land package, you know all the costs from the start and can tailor your home design to suit your budget. As the plans and inclusions are all agreed upon when you sign the contract there are no unexpected costs. The only reasons costs will change is if you make changes after the contract is signed.
There are also some government grants available for first-home buyers looking at new build properties rather than existing homes, making house and land packages even more affordable.
It will take too long to build my new home
Many homebuyers may want to buy a home that is ready to be moved into straight away, worried that it will take too long to build a new home.
Building a home from scratch does take time, but a house and land package often follows a stricter timeline than other home construction projects.
The building process can vary for different types of properties under construction. When buying a house and land package you receive a construction schedule detailing the time frames of your home build so you know what to expect. This ensures you can plan for a specific move-in date for your new home.
If you don’t want to wait for your home to be built, you also have the option of buying a house and land package with a ready-built home, that you can move into straight away.
House and land packages have limited design options
A concern for some homebuyers is that house and land packages will only have limited options for floor plans and finishings of your home design.
While your builder will have designs they recommend, you can discuss any changes you’d like to make, or alternate features to include in your home.
Communicating clearly with your builder is important to ensure your home design suits your needs and preferences. Property developers of land releases in Clyde North will often present a set of standard home designs and floor plan options that are available in the package, with optional customisation and features you might want your home to include.
Buyers will often be able to make changes to the floor plan, however, this can result in the costs and duration of construction increasing. While minor changes may not have too much impact, the more significant the changes, the more likely it is to drastically impact the overall costs.
I won’t get to move into the location I want
Many homebuyers may feel like buying an existing property gives them more opportunity to find a home in a desired location, close to necessary amenities and providing great lifestyle benefits.
With house and land packages becoming available in highly sought after suburbs such as Clyde North, there are more opportunities than ever for homebuyers to move into a great neighbourhood. These areas are great for families, with various parks, schools, shops and cafes close by.
Homebuyers may also be worried about their property being able to increase in value. Location is often a strong determining factor in capital growth, so you may want to research areas in which properties sell well.
Often properties close to schools, shopping centres, public transport can achieve a good resale value, which is why land release in Clyde North provides a great opportunity for homebuyers to secure property in a growing area.
Many house and land packages are sold at a great price, which also helps maximise the resale value.
I could end up with a bad builder
Building a new home may bring with it concerns around not knowing how the finished home design will turn out, and if you will be happy with your new home once you finally see it complete.
It’s important to have confidence in the work of the developer and builder, as this will give you a better chance that the finished result will match your expectations. Researching other projects they have worked on will give you a better idea of their quality of finished properties.
One of the benefits of house and land packages is that you know you’re working with a highly experienced builder, trusted by the developer.
For a house and land package, you do not necessarily need to secure the land before finding a qualified builder. You can get a builder on board earlier on in the process and even get their input on a block of land before you buy it, factoring in any home layout and design preferences you’ve discussed with them. They can also help guide you towards what land release in Clyde North will best suit your home design.
