5 Benefits to House & Land Packages

So what’s a house and land package?  As the name suggests, a house and land package is when you purchase an un-built home with a block of land together at the same time.

Generally speaking, you have the following options when it comes to having a brand new home:

  1. you purchase (or already own) an existing home, you knock it down and rebuild a new home
  2. you purchase a vacant block (registered or unregistered), and you build a brand new home
  3. you purchase a house and land together at the same time
  4. you buy a “spec” home – which is a home that is newly built (and funded by the builder)

The good news is that there is no good or bad decision when choosing from the above options.  It all depends on your circumstances, your requirements, your needs and wants.

Having said that, there are certain benefits to purchasing a house and land package option that some of the other options do not enjoy.

Benefit ONE – lower stamp duty

When you purchase a house and land package, you only pay stamp duty on the land component.  Unlike a spec home or purchasing an existing property so you can knock it down and rebuild it, you are paying a far smaller amount in your stamp duty tax which is always better for your pocket.

Benefit TWO – turnkey home

This is an interesting one as the definition of turn-key in the building industry is used very loosely in my opinion.  Turnkey means very different things to a lot of different people. Does it include 40mm stone? waterfall edges? wall-hung vanities?  etc…

So for the purposes of this, let’s use turn-key at a high level and assume it’s ready to live including floor coverings, blinds, flyscreens, driveway, fencing, turf, mailboxes, clotheslines, antennas, etc… So basically, you can move into the new home and you essentially don’t need to do anything else.

The benefit of purchasing a house and land is that the builder has done all of the thinking for you.  Because of their experience, they know what you need in your new place and they have put it all together for you.  This can be very beneficial as building a new home can very complex and thinking of everything without any experience can prove very difficult if not costly for you.

Benefit THREE – fixed price package

One fantastic benefit to purchasing a house and land package is that they have a fixed price.  Unless you add some options or make changes (if you are allowed), the price is stated upfront and you are clear about all of your costs.  This is really beneficial for your peace of mind – and truth be told, I would pay even more (within reason) to know that my build price is fixed.  Imagine if I sell you a house and land package at $600,000 and then charge you an extra $30,000 along the way for spoil removal, extra piering, temporary site fencing, etc… It’s not how you want to experience your building journey.

Benefit FOUR – access to the best location

Usually, when a new estate is released (generalising here), builders get first dibs on which blocks of land they want before the public even gets the chance.  This means that some of the best blocks are already taken by the time you, as the client, come along to purchase a block of land.  So buying a house and land package will provide you with better land choices that you would otherwise not be able to purchase on your own.

Benefit FIVE – lower overall costs

Because you are purchasing the whole package, you get some good discounts and value for your dollars.  You also get a complete package so there is a serious time saving for you as the client (what’s your time worth?).  You don’t have to find landscapers, concreters, blind suppliers, etc…  Instead, you simply choose your design, block and builder and get the keys to move in (or rent out) when the house is good and ready.

Final Comments

Like anything, always find a reputable build that you can trust.  Whether you are purchasing it directly from your builder or through a reputable partner (investment firm, real estate agent, mortgage broker, etc…), a reputable builder is the most critical part of the equation.

 

by Girgis Sirgyous
House & Land Manager
Bachelor ENG/COMM

Source: http://houseandlandco.com.au/5-benefits-to-house-land-packages/ 

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