House and land packages are a fantastic, convenient way to get into the housing market and create your dream home in a great location. But often, people don’t fully understand how these packages work. We break down the process of purchasing a house and land package and take a look at why these packages are so good.
What Is A House & Land Package?
There is a pervasive myth that house and land packages are a single contract that provides no flexibility for the purchaser.
For the vast majority of house & land packages advertised if you're not happy with the house design selected, it can be swapped to another that will fit that land size or customised to suit. If that particular block doesn't suit, builders can help with land selections in estate areas to suit the design you want.
Upgrades or turn-key features can be added if there are features you want that are not already included, and facades can be changed.
The main advantage of a house & land package is that they are a quick solution, allowing you to see straight away how much it is going to cost in total to build your dream home.
How Do You Finance A House & Land Package?
A typical house & land package involves 2 contracts, 1 with the land developer and another with the builder ‘committing’ to the build at the same time. Separate deposits are usually required for both when committing to a particular package.
Once your land titles, settlement will take place (balance of land payment required) and then the build can start. The build is paid in structured payments arranged with the bank according to the build timeline.
Typically you will need to finance the building of your home using a construction loan. This type of loan differs from a normal home loan, and it’s important to compare lenders to make sure you’re getting a good deal. Often, lenders offer interest-only repayments for the duration of the build and calculate repayments based on the status of your build.
Process For Buying A House & Land Package
Before committing to a house and land package, it’s important that you do plenty of research. Consider the location of the home and the amenities that you will have access to while living there. Research the builder and take a look at previous builds that they have done to see what your new home could look like.
Once you have decided on the builder consider the contract carefully, paying attention to build times, added extras, and the specifics of what your home will look like.
What Are The Advantages Of Choosing A House & Land Package?
There are lots of benefits to buying a house and land package. Some of the main advantages of this method of building include:
- Fixed pricing. With a house and land package, you will know from day one what the total cost is going to be.
- Customisation. Your home doesn’t need to look like every other house on the block when you choose a house and land package. Talk to your builder about customisations to make your home your own. Builders are happy to discuss optional extras and alterations to perfectly suit your needs.
- Convenience. When you choose a house and land package, you are streamlining the process of building and reducing risk. Working with an experienced builder means that they can help with land selections to suit the design you want.