The new home dream
Many people dream of owning a brand new home, with some wanting to go even further and be part of the home building process. If you’re one of them, a house and land package could be for you.
What is a house and land package?
A house and land package is essentially buying a home that hasn’t been built yet.
The first step is that you buy the land the home will be built on. Usually this is land that has been newly released by the government and is ready to be built on. Brand new roads, utilities, water and sewage are built for the site.
Then, property developers either build a home and sell the whole package, or they offer customisable property designs that you can choose from – giving you a hand in the construction of your new home.
What are the benefits?
The main benefit of a house and land package is that you’re getting a brand new home. This means low maintenance costs, moving in with no DIY necessary, and easy living for you.
Many new homes built in Australia are environmentally friendly and are built to reduce utility bill costs. This, plus the fact that your new home won’t require major repairs, means that it will be cheaper to run now and in the long term.
There are also a number of savings you can make as a buyer purchasing an off-the-plan home. The government offers stamp duty savings and property investment tax deductions to lower the overall cost of your home purchase and future tax bills.
What’s more, many house and land packages offer customisable fixtures and fittings. Before the house is built, you will be consulted on things like bathroom taps, kitchen cupboards, flooring and doors so you can move into a home that is truly and uniquely yours.
Funding a house and land package
Getting a mortgage on a house and land package is a little different to the usual process, but doesn’t need to be complicated.
Usually, you’ll need to take out two separate home loans – one mortgage for the land, and another for the house. Getting a mortgage on a house that isn’t built yet normally requires a ‘construction loan’ where you draw down money as the house is being built.
We suggest getting expert support for this process. Not only is the stress of mortgage applications taken out of your hands, an expert can help you navigate any hidden costs along the way. For example, determining exact pricing for things like fencing, garden landscaping, and other costs that some builders factor into their quote and others don’t.
The team at Reventon has over 125 years of collective experience, so we know the questions to ask to ensure there’s no surprises for your house and land package build, and your bill!
Where to find a house and land package
There are property developments happening all over the country in many towns and cities. Often, house and land packages are in high price growth areas where the government is investing in infrastructure and amenities.
It’s important to do your research about the development and the location that you’re looking in to ensure that your property investment offers everything you need and will hold, or increase, its value in the long term.
We suggest seeking advice from one of our experts, who can talk you through the process. Our consultations are free and if you don’t want to go any further, you’ve got no obligation to take up any of our services. If you do, we can help you every step of the way – from organising funding to the day you get your keys.