Benefits of buying House and Land Package
When you purchase a new home, you can buy your land and the house to be built on it separately, or together. This is ultimately a personal choice, but there are some distinct advantages to buying house and land together in one hit.
Let’s break them down.
Bundling house and land together usually means that developers are in a position to offer great deals to buyers. Builders select the best blocks in the estates that they know will translate to more affordable house and land packages; they can best match the right house to the chosen lot of land.
When you buy as a package, builders also usually bundle inclusions that deliver you greater discounts, thanks to economies of scale by negotiating bulk deals with suppliers, together with spreading costs across building a group of these houses within a section of a land estate.
Builders will reduce their margin on the sale price of a house and land package in order to create greater value to their customers. By simplifying the selling process, they save money, which can be passed on to the buyer.
Peace of mind
When you purchase a house and land package, you know your costs upfront and the builder has included everything you need to get started on site. You’ll have relatively fixed costs and can budget accordingly.
If you take on a do it yourself build, you’ll be facing an uphill and often stressful battle, full of unexpected surprises, including selections and items not included in the base price of the house. A house and land duo give you certainty, convenience and peace of mind both before and during construction.
This is what we term as a “Turn Key Solution”. Turn key solutions can provide you up to $83,000 AUD of added inclusions that are already part of the price. These inclusions include, concrete driveway, landscaping to the front and rear, fencing, kitchen appliances, blinds to all windows, heating and cooling and security system. With this in place your home is ready to move in or ready to rent, saving you time and money.
If you are working with the same team to acquire your land and build your home, you’ll be presented with a solution where the right lot is selected for your lifestyle or investment, grouped with a house that is designed to work best for the chosen lot of land. Working with an expert on a holistic solution will reduce stress levels and give you much deserved support.
Securing finance for a house and land package will be easier and less complex as you will apply for a single loan versus two (a loan on the land and a loan on the house). Having a combined loan will help you get the best rates, and select a bank that understands progress payments. Propland finance are able to provide you a very competitive interest rate, specifically designed for foreign investors. Go to our finance page to find out how we can assist you.
When you buy new home and land package versus apartments, you’re only pay stamp duty on the land part of your purchase instead of paying the full stamp duty on an apartment. Buying a home and land package is done in 2 process, buying the land, which stamp duty is payable and then the build process. Whereas buying an apartment you will need to pay stamp duty on the full purchase price. Purchasing a home and land package will see you save approximately 45% savings up front.
If you’re an investor there may be additional financial advantages, as newly built properties depreciate at a faster rate than established dwellings. There are depreciation advantages for buying new as well as less maintenance costs as everything is new.
New homes are built to comply with top energy ratings. This means that the house will be more efficient to heat and cool, and in turn saves a considerable amount of money in utility costs (which may otherwise be a nasty surprise).
House and land packages have been pre-vetted by the developers bringing them to life. A development is often already be underway when you buy, and those same economies of scale means that entire suburbs are often pre-sold.
This translates into guaranteed activity and growth. Plus, communities in developing locations promise strong growth over the long term, as new neighbours move in and supporting infrastructure is rolled out. This growth helps energise a suburb as a community and offers financial benefits as you build equity in your house and land package over time.