As the property market in Sydney continues to heat up, buying a house begins to feel further away for those fresh to home ownership. But don’t give up on your dream home just yet! Instead, consider the benefits of buying a house and land package.
Whether you’re a first time home buyer or a seasoned investors, a house and land package is a great way to get into Sydney’s hot housing market. To help you on your way, we’ve created a guide to house and land package guide for first home buyers.
Read on to learn more about house and land packages and why they’re a great property investment decision.
A house and land package is sold by property developers and includes both the vacant block and the home’s construction. The package is a great way for first time home buyers to enter the real estate market. Home and land packages are also an ideal solution for Sydney investors looking to build their next investment property.
When buying a house and land package, you will typically have a choice of lot. The block of land may be part of a larger plot of subdivided land or part of a larger master-planned community.
The construction of a home as part of a package will generally be a fixed price, which will vary based on the style, size and extras. Your builder will typically have a range available including single storey homes and double-storey homes, all suited to your lifestyle and family needs.
Haven’t picked out your builder quite yet? No problem. Check out our guide to choosing the best home builder in Sydney.
If you’re someone who prefers to customise their space, talk to a custom home builder who offers house and land packages. Smaller builders cater to changing design details like external facade, lighting, interior fit-outs and block orientation to better suit your vision. This allows overwhelmed first home buyers to get a quality, pre-designed home, without compromising on their personalised preferences.
Most house and land packages are financed with a construction loan and a loan amount for the land itself.
A construction loan is drawn down in several stages, where the bank will make incremental payments to the builder at the conclusion of each stage of construction. When you’re paying off your construction loan, you will only pay interest on the amount that the bank has paid up until that date.
The stages of construction will vary depending on each builder and sometimes different situations. However, there are a few milestones to expect.
This is the initial stage where the builder will organise council approvals, along with trades and materials to begin construction. This stage begins once the land is settled and the property’s legal title is transferred to your name.
This is where the frames and roof trusses will be built and erected, giving a good insight into how the property will look and feel upon completion. This can happen surprisingly quickly, with some frameworks even arriving in sections to be secured on-site.
The enclosing stage will see the bricking or cladding on the walls and tiles or metal on the roofing to make your home weatherproof. This will reduce weather-based delays and allow internal fit-outs to begin.
This stage will see the internal fit out including all fixtures and fittings, along with electrical work, plumbing and sheeting. Your bathrooms and kitchen receive their finishing touches and lighting is installed.
By now, you should have drawn down on each part of your construction loan. Once the final payment is received, your site manager will walk you through to check off every element and guide you through the inner workings of your new home.
There are a number of perks for first-home buyers when it comes to investing in a house and land package. Read on to learn more about the benefits of choosing a house and land package for your first Sydney home. Here’s an easy table outlining each benefit you’ll receive.
Expect a stamp duty exemption |
When you buy a house and land package, you will likely be exempt from paying stamp duty on the house itself. Instead, you save thousands by only paying for the value of the land. |
Look into first time home buyer grants |
Exemptions and first home buyer grants are available to make building your first home more affordable. This includes concessions on stamp duty and the first home owner grant which is a lump sum payment of up to $10,000 in NSW. |
Ask your builder about customisation options |
When planning a house and land package, you will choose from a range of home designs to suit your block size and shape. Designs are pre-determined but they can be altered based on your style, needs and budget. |
Check your contracts |
Some home inclusions may surprise you. while some may be missing that you assumed would be included. Check your contract for a full breakdown of what’s included in your new Sydney home build. |
Visit display homes throughout Sydney |
Visiting a display home is a great way to grab a snapshot of what your potential home will look like. It’s a great way to research home builders as it shows what each builder is capable of producing. Don’t be afraid to ask questions about each display. |
Consider the Sydney suburb you’d like to invest in |
House and land packages are becoming commonplace in master planned suburbs and developments in outer suburbs. These Sydney suburbs are perfect for new families because they’re within good reach of infrastructure, public transport and schools. |
Ready to invest in your own house and land package?
After spending decades building for home buyers from all walks of life, in all stages of their home building journey, we can support you from contract to handover with understanding, confidence and compassion. We have a wide range of home designs to suit your lifestyle, needs and budget, and you can build your new home with confidence that your dream is in the best hands.
We service Greater Sydney, the Central Coast and Illawarra, and have helped many Australians reach their first home owner dreams. To get started on yours, get in touch with our friendly crew today.
Ready to start your building journey? Chat to our team of experts today and get a FREE personalised quote
Find Out More
Related Posts
