Buying a home is one of the most important decisions a person can make. There are several key benefits for purchasing a house and land package, rather than an established home.
Buying a home is one of the most important decisions a person can make. One of the key choices to make is whether to buy an established property or a house and land package. This phrase refers to a house that is built specifically for a particular piece of land. There are several significant benefits from choosing a house and land package.
Because both the property and the land it will sit on are packaged up in one product, your purchase process is streamlined. All the costs involved in the purchase of the land and the construction of the property are combined in a single loan from your lender. And having a single financial arrangement will often mean lower arrangement fees.
With the average cost of an established home in Australia seemingly to continue to rise, and regularly topping the half and million dollars mark, they are increasingly beyond the financial reach of many Australians looking to buy a home. In contrast, house and land packages typically sell for significantly less, but still deliver a comparable property in terms of size. Some house and land packages can even be had for as low as $300,000, meaning they are also good options for lower wage earners and young people who have not had the chance to save such a substantial deposit.
There is also a good chance that you could have instant equity in your new property. Purchasing a house and land package gives you the chance to lock in labour, land and construction costs. If the housing market is rising – and historically it has done much more often than it has fallen – this will mean that by the time the property is built it could already be worth more than you paid for it.
In house and land packages, because you are buying a property before it has been built, you will be able to ensure that the house will meet yours, and your family’s needs. You can liaise with the builder on the design so that you get the features and spaces you need, having an input on everything from the initial floor plan to the finishes, fixtures and fittings that will feature inside the property. You can also decide which proportion of the land is devoted to a yard or garden.
The other benefit of a new-build property is that maintenance costs will usually be lower than those associated with an established property. New builds will benefit from the latest technology and design innovations, meaning they will have up-to-date heating and water systems that are less likely to break down. Established houses may have such systems in disrepair or that, due to their age, require more upkeep to remain functioning correctly. Newer systems in house and land packages can save you time and money in maintenance.
House and land packages are often sold on new estates or nascent neighbourhoods, where many of the purchasers are buying new build properties. This can give a real sense of community, as the residents are all part of a new project and help to shape the neighbourhood from the start. Buying a house and land package alongside others in the same situation can often generate a real sense of community, which is particularly good for young families.