Are House and Land Packages a Good Deal?

| October 13, 2012

With available established property listings at the lowest since the GFC, many people are taking advantage of house and land packages. Building is affordable, and in many cases saves you money on the entry fees assisting in the overall saving on the cost of buying the house.

House and Land packages australia  prices

What is a House and Land Package?

A House and Land package is the term used to describe a house that has been designed to fit on a particular block of land. All the costs associated with the House and Land package are given to the lender to organise one simple loan. Each house and land package will differ in price and quality, depending on the location and the specification on of the house.

There are two ways to go about entering into a house and land package. You can approach the Builder to find suitable land that will accommodate the house you have chosen, or you can buy an existing package that has been put together by the builder. Either way the benefit in a house and land package is that you have more input in the design, and you can choose your own colour scheme.
Convenience

Entering into a house and land package is convenient for you because all the transactions and paperwork are covered at the same time. Once you have selected the house and land, the rest is taken care of by your Builder.

Good Investment
Entering into a house and land package is a good investment. You save thousands of dollars in stamp duty, as it is only applicable to the land component, is less than the amount of an established property. Generally when the house and land package is completed you have developed equity in your investment, but when you purchase established, you rely on the growth of the area to go up before you can gain more equity. The maintenance on a new home is always less than an established home, and when it comes to selling the property, you will usually get more money for a newer house than an older one.

Find an Ideal Location
Location is always important when considering a house and land package. If the property is for investment, then you would preferably want the location close to schools, shops and public transport.

Size
Clearly you need to establish what the house is going to be used for. The size and room layout will satisfy different people’s needs, so you need to established if the house is for investment or for you to live in.

Buy from a Reputable Builder
It’s a good idea to enter into a house and land package with a reliable builder. You should consider if the builder specialises in the market you are entering into, and ensure that the reputation of the Builder stacks up to what the sales consultant is trying to put forward.

The Bottom Line
You are gaining instant equity when you enter into a house and land package. Equity is the difference between what the home owner still owes on the mortgage and what the house is able to sell in the market. People who purchase a house and land package are investing their money wisely and can watch it grow more valuable each year. ( Guest post by Erin Warbrook -Freelance writer and PR )

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Tags: ,

Category: 2012, Dream home, Housing, Land, Property

About the Author ()

Property man writes articles related to property , stock market and finance. if you like what you see do bookmark the blog and leave me a comment

Comments are closed.

Social Widgets powered by AB-WebLog.com.