This article was originally published on iBuyNew.com.au and has been reposted here with permission.
Buying a house and land package has its benefits, but it’s important, like any other property purchase to do your research and ask your questions first before you buy. So what questions do you need to ask when buying a house and land package?
1. What finance will I need?
Buying a house and land package is slightly different from buying an established home. Firstly, you need to pay your 10 per cent deposit and stamp duty on the land component. You will then need to take out two loans. The first loan is to purchase the block of land and the second is for construction. The construction loan will be drawn down in stages and you only need to pay interest on the money as you use it.
2. Where should I buy?
Choosing where to buy and build your house and land package is one of the critical first questions you need to decide upon. Start by state, then narrow down by suburb and then which master-planned estate you want to buy in. You can then choose which block of land you prefer. You need to think about what your must-haves are, for example, it must be close to work, or near good schools. Find out what conveniences and amenities are nearby to make sure you tick all of the right boxes.
3. Can I choose my own builder and home design?
Within each master-planned estate, there will be a number of builders offering different house designs that you can choose between. However, it’s essential that you do your research first and make sure that you work with a builder who is reputable, completes work on time and has high-quality workmanship. There are usually a number of different house designs to choose from per builder where you can customise your home accordingly to suit you and your budget.
4. How long will it take to build before I can move in?
If you are looking to move into your new home, you will want to know what the build time is so you can plan when to move in and when you need to arrange finance. Usually, house and land packages are quite speedy to build and take approximately 26 weeks.
5. Are there any incentives?
Depending on which state you buy in, there might be some incentives. There might also be stamp duty concessions available for building your own home, whilst the builder or developer might offer you specials such as a free upgrade. Keep in mind, the earlier you buy a house and land package within an estate, the cheaper the property will be. The more homes and stages that are sold, the more expensive the properties become.
Click here to learn more about grants and incentives that you may be eligible for.
6. What does the future hold?
You should also think ahead into the future and find out what other developments might be happening in the local area as this could have a positive or negative impact on your home. Will your home be part of a larger master-planned estate, or will there be new schools and train lines built to make this estate more accessible?
7. What is included in the cost?
One of the questions you’ll want to know the answer to is what is included in the cost. The builder or your Property Consultant should be able to provide you with a cost estimate and an inclusions list. This list will outline all of the materials used as well as the finishes and fixtures included in the package. You should also enquire about what additions there could be and what other extra costs there might be e.g. landscaping.
When buying a house and land package, it’s important to find out all you can beforehand, to ensure you make the best decision possible. Look at past examples of builder’s work, review display homes and speak to customers. Make sure that your house and land package is well positioned close to core amenities to ensure that you experience good price growth, whilst have all you need close by.
Contact iBuildNew Today
If this is your first time buying a house and land package, then why not speak to one of our new home coaches?! They can walk you through the entire process and help identify what suburbs and packages suit your budget and lifestyle requirements. Don’t hesitate to call us on 1800 184 284 or book a call online at a time that suits you.