Turn-Key Terminology: Understanding House and Land Packages

0
460
Source

Purchasing property is one of the most exciting times in anyone’s life. After years and years of work, the payoff is in purchasing property and creating a warm, cosy space to enjoy with your family. If purchasing property as an investment, it has the potential to generate additional income for you and make your life a little more comfortable going forward. Either way, purchasing a property is a great moment that brings many positives for the buyer.

More specifically, house and land packages can offer purchasers a way to secure land in a desirable area while building their home. The main benefits to these deals are that homeowners get to work with contractors in building their home, and in many cases, they can have the home built to their specifications. In many cases, house and land packages can have you in your home a lot sooner than designing a home on your own and then finding a suitable site by yourself.

Continue reading to learn more about house and land packages and why they might be the right solution for you.

What Exactly Is A House And Land Package?

Property developers plan projects to build new homes after purchasing government-owned land. The developers create an infrastructure of water, sewage, utilities, roads, and other essentials. Developers typically build houses on the land or allow purchasers to customise their home to their specific tastes. While there is no particular profile of a home buyer, house and land packages can be appealing to those developing retirement villages, golfing estates, eco-villages, and often first-time builders are attracted to these deals.

House and land packages by Hoot Homes and a number of other residential construction companies can help to make purchasing a new home affordable, and in many cases, streamline the process of building a home on purchased land. The difference between a house and land package and purchasing a home through a standard sale is that with the former the purchaser finances the house through a construction loan and then purchases the land. With the latter, the purchaser buys the home through a traditional financing. In many cases, house and land deals are bundled together streamlining the process.

What Is Included In House And Land Packages?

Items that are usually included in a package are a kitchen, bathroom, doors, windows, electrical points, television and phone connections, fans, stairs, and tiles. Some builders will include landscaping and fencing as a part of the home. Other inclusions are things such as mailboxes, clotheslines, and driveways, but outside of these inclusions, builders can include add-ons which will make the price more expensive.

Are There Any Disadvantages To House And Land Packages?

One problem associated with house and land packages is their effect on property values if there is an oversupply of empty houses. Because these homes are built and then sold, it could be a while before they are occupied. Also, while the advantage of these packages is that the price is typically fixed, prices can vary due to the site’s properties. Then, if you want to upgrade your property, this can add to the overall cost of the property significantly.

Finally, the cost of the package can be increased simply because of built-in commissions. You are not only paying the developer but you are also paying those involved in marketing and selling the property to you. And because the commissions are not always disclosed, you could be giving away a fortune simply on the sale of the home alone.

House And Land Basics

The possibility of owning a home in a place that could be the ultimate neighbourhood in the area is always attractive. You benefit from all of the business interests that will come into the area in response to prospective development opportunities, which inevitably can increase the value of your home. The best way to take advantage of these opportunities is to go into a house and land package fully understanding the deal. Armed with the right information, you will be able to choose the right home for you and your family to enjoy for many years to come.