As a prospective home buyer, you’ll naturally be looking at all available options and knee-deep in research. It can be an exciting and also overwhelming time, which is why we have written an easy and accessible guide to house and land packages.

When considering a new home, the standard options include buy and buy to build. If you are looking for a new house to live in or invest in buy to build packages are a great way to get a home exactly how you’d like it and well worth considering.

House and land packages aren’t as complicated as you might think. We’ve broken down what you need to know in the succinct sections below.

Types of house and land packages

There are two types of house and land packages:

  • Buy to build
  • Pre-built

Buy to build

Buy to build is where a developer has already purchased the land, divided it into different plots and has designed and costed a number of different home design packages for you to choose from. Like these house and land packages in western Sydney, where you have a choice of a different price points, locations and designs.

Pre-built

Is where the developer has already completed the above and the construction and is selling the new home. These won’t allow for customization but does been you can move into a new home straight away.

How it works

Although developers are the majority of people who off house and land packages, it can be done by a collective. The premise is that land is purchased from the government and the developers then lay down the infrastructure needed to develop the land into housing.

Things like sewage, electricity, gas, water pipes, and roads.

What you’ll need to consider

The purchasing of a house and land package is similar to purchasing any other type of house, however the main difference are the types of loans and stages.

Two step approach;

  • Land mortgage
  • Construction loan.

Land mortgage

Land mortgage is a regular mortgage, whereby you agree to the price of the land and find a mortgage provider which gives you the best rates.

Construction loan

Construction loan is slightly different in the sense that this loan will be drawdown in stages. When each stage of the build is completed by the developers and to your satisfaction you drawdown on that stage of the loan and make payment.

Deposit

Similar to financing other properties house and land packages still require a minimum of 5-10% deposit and will be dependent on your mortgage and loan providers requirements. For example, you can use short term loans from CashnGo for funding the shortfall.

Stamp duty

Savings or concessions on stamp duties is an advantage of house and land packages as dependent on your state or territory’s requirements, you may only paying stamp duty on the land not the house and land. Furthermore, there are government assistance grants which can provide further benefits to people building their own homes.

Infrastructure

When looking at different house and land packages it is important to consider the current and future infrastructure of the area. Connection to public transport may not necessarily be of interest to you due to your particular circumstances. However, it is something that can negatively affect you if it isn’t there, particularly if you are looking to rent out the property in the future.

Maintenance

New homes have little or no maintenance in comparison to older pre-lived in homes, adding to peace of mind and purse.

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