Advantages of House and Land Packages
There are many advantages to buying a house and land package directly from home builders.
The builder can often have exclusive use over the land so you if you are interested in the package, being comfortable communicating and working with the builder is very important. As with any building project, research and meeting the builder is critical to ensure you are both suitable to work together.
Buying a house and land package allows you to look at house plans that will suit the particular block of land and also gives you an insight into how it will site on the block.
A house and land package will generally be a sale with two contracts. A land contract to purchase the land and a building contract to build the house. A considerable advantage is that you will only pay stamp duty on the land price. If you were buying an established house, you would have to pay stamp duty on the total cost.
The house price is usually based on a standard package of inclusions. However, many builders are happy to accommodate any variations for selections such as colours, appliances, etc. This allows you the opportunity to personalise your house to suit your lifestyle and needs.
If the land is registered and ready to build on, the house price should be fairly fixed (exceptions may be excavations, rock, piering, etc.). However, if the land is not registered, a number of items may still affect the cost as access to the site may not be available. Some of these items may be a final contour survey, Geotechnical report, bushfire report, flood zone report, etc. These costs may have to be adjusted when access to the site becomes available. If this is the case, the builder will be able to outline what has been included.
House and land packages can be great option for purchasers. The major items to consider are confirming what has been included in the price, and as always, ensure your compatibility with the builder.
Guide to building a House and Land Package:
There are three components of building a house and land package.
Purchase land:
The land is purchased under a separate contract. You will pay a deposit to exchange on the land and pay the remainder upon settlement of the land.
House contract:
A building contract is issued and once signed, a contract preliminary services fee is required to proceed to building approvals, colour selections, fittings and finishes.
Commence build:
Once construction commences you are required to pay the progress payments at each milestone of the build. When construction is complete, your new home is handed over and ready for you to sit back, relax and enjoy for years to come!
Contact us today if you would like to see our current house and land packages.
