Buying a home can be expensive and confusing, especially for first time buyers, which is why house and land packages are becoming a more popular option.
Not only are house and land packages all-inclusive, they often come with government incentives such as lower stamp duty fees or grants, offering great value to home-buyers.
When buying a house and land package there’s still a number of important factors to consider as with buying any home.
1. What type of house and land package you’re buying
There are two types of house and land packages. One involves purchasing land to build a house with a construction loan, and the other involves buying a ready-built home, which is referred to as a ‘turnkey’ package.
Consider which type of package better suits your needs and budget. A construction loan house and land package give buyers the freedom to design their own homes. However, the second option allows you to move in straight away.
Location is a key consideration when buying a house and land package.
When looking at locations, check proximity to essential amenities such as supermarkets, schools, health services, public transport. As well as offering convenience, these factors could affect the resale value if you choose to sell your home in the future.
You want to choose a location that suits both your current and future needs and is a place you will enjoy living in for years to come. House and land packages in Clyde are becoming increasingly popular, as Melbourne’s south-east continues to offer great lifestyle options and often with more space.
Always visit the area and the surrounding neighborhoods to get a sense of the location and make sure it has everything you need.
All house and land packages differ so find out exactly what is and aren’t included in the costs.
Don’t assume that a property is all-inclusive. Make sure you clarify what terms, such as standard inclusions and additional inclusions mean for the property you are purchasing. Depending on the package, features such as fencing, driveway and landscaping may be extras which can significantly raise costs.
If you have purchased land, ask your builder for a list of the inclusions and a detailed cost estimate of everything from construction to finishes and fixtures. This will help ensure you have a clear understanding of all the costs involved.
As with purchasing existing homes, when buying house and land packages, ideally you should pay a 20 percent deposit, though some lenders may approve a 5-10 percent deposit for house and land packages. Just keep in mind a lower deposit means more repayments in the future.
4. Design options
If you are buying land to build a house on, you will have numerous options for the design of your new home.
Make sure you hire a builder with a good reputation and one who has experience in developing house and land packages. You might want to look at their past work to see if they have used materials or design features you like to see the quality of their work.
When considering the design options, choose the layout and size that fits your current needs as well as any future requirements. Consult with your builder about what you want in your home as they can help you decide what will work best in your home. During the building process, you should also check in regularly to make sure you’re happy with the quality and design of your home.
Before building commences, find out about any restrictions regarding the position of the home on the block of land, its orientation, height restrictions, as well as any permits you may need for any design features.
5. How long does it take?
If you buy a house and land package with a ready-built home you can move in straight away, however, if you buy just the land, the process is a lot longer.
The length of time it takes to get your home built depends on various factors. Enquire early whether construction can start immediately or if there is a waiting period. If you need to wait on the settlement period, find out how long after your builder can begin construction.
Once you’ve hired your builder and gone through the plans with them, they should be able to give you a clear timeframe of the construction process. Make sure to get this in writing.
Building a home is a long process, and there can be inevitable delays, so make sure you are in regular contact with your builder to keep abreast of any changes to the schedule or costs.
When buying a house and land package, it’s important to ask questions upfront about everything from costs to design options, as you don’t want to get caught out later by any surprises.
For more information on the house and land packages in Clyde and other Melbourne suburbs, contact the team at Bloom.