Why House and Land Packages are Worth the Investment
Building a new house will be one of the biggest and most exciting adventures you’ll ever undertake in your lifetime. Unfortunately, it can also be one of the most nerve-wracking and overwhelming!
For anyone interested in purchasing a new house build, whether it be your first home or an investment property, a house and land package offers a range of benefits for home buyers. Today’s article is all about the advantages of house and land packages and why they just may be the answer you’ve been looking for.
Anyone who has done a little research on building a home will have come across the term “House and Land Packages”. But what are they exactly? Let’s look at that next.
What is a house and land package?
A house and land package is a fixed-price home bundle that combines the purchase of land and the cost of a new home into one contract. The package is most popular with new home owners and property developers. Without this package, you must buy land before hiring a builder to develop the property.
As you can imagine, this can take a while, especially when you consider that different builders have their own specialities, meaning you could find an excellent builder who just isn’t the right fit for you and then have to go back to the drawing board. A house and land package provides you with a block of land and a suitable builder lined up from the get-go.
House and land packages are very popular in master-planned community estates due to the number of blocks available. In addition, anywhere with display homes or a display village is likely to have house and land packages on offer from most, if not all, the builders.
Who are house and land packages designed for?
House and land packages are a great option for:
- First-Time Home Buyers
- Investment Properties
- Those looking to break into the rental property market
11 Reasons why house and land packages are worth your investment
House and land packages are a great investment for various reasons. One of the biggest benefits of this winning combination is that it allows you to stick to a plan and a clear budget.
House and land packages are new properties sold off the plan, with a range of customisable home designs to choose from. These properties are usually situated in land estates, where property developers purchase land released by the government and set up infrastructure and facilities to create a new community. Not sure if this approach is right for you? Here are the three reasons why it could be the perfect fit.
1. You’re in charge
House and land packages simplify the process of buying land yourself and having free rein to build on it, but they do offer you the option to customise your home.
With 72% of home buyers claiming they would like to personalise their space and structure, this gives you the flexibility to do exactly that. Home buyers now have enormous flexibility to choose their perfect block of land, match it to their ideal design and select their preferred builder. The buyers are in total control of every step.
2. Reduced costs
Most house and land package deals offer locations that are more affordable for buyers on the outskirts of existing cities or suburbs. A house and land package generally provides better value than an existing house in the same area. On average it costs about 14% less than a move in ready property. This can save you thousands of dollars if you’re looking at ways to budget for a new home build.
Another expense you won’t need to worry about is renovating and repairs; your new property is in perfect condition.
3. Occupier appeal
It’s easy to understand the appeal of a new home. The finished product is neat, attractive and holds plenty of curb appeal for potential tenants. Since it’s a new custom home build, the house looks modern and is designed to suit today’s market, unlike older houses that may need renovating to suit the current property demands. You’ll also be able to claim plenty of depreciation from the tax man since it’s a new build.
4. Streamlined process
Anyone who has built a house will tell you there are a lot of decisions to be made, and things can get overwhelming. While any project of this size will have stressful moments, a house and land package can help simplify the building process without sacrificing quality or choice. The house plan will be chosen to suit the block of land, with design choices like orientation being sorted out for you already.
5. Stamp duty savings
Another great benefit of buying a new house and land package is the reduced stamp duty since you’ll only be paying stamp duty on the land value. If you were to buy an established home you would pay stamp duty for the total value of the property, house included.
A house and land package can save you thousands, if not tens of thousands of dollars, depending on your purchase price.
6. Increased flexibility
Depending on your builder and your agreement, you’ll have some flexibility to make changes to suit your specific needs. You’ll also have some greater choices with materials, fixtures, and other inclusions.
7. Option to choose your block and design
Along with choosing the ideal block of land, you can alter the design to meet your needs. For example, suppose you’re planning to rent. In that case, you can research and carefully consider the type of tenant you’d like to attract (for example, professionals, couples, students) and then create a layout to suit your needs.
8. No hidden renovation costs
How much does renovating an existing house cost? Unfortunately, it’s a great unknown that you may not get an answer to until the job is underway. While it seems like renovating an existing property should logically cost less than building a new house, it’s often not the case. Once you peel back the wall, you may find severe structural damage, outdated pipes or other nasties that will cost a fortune to fix.
Even more minor renovations will build up quickly, particularly if you need to hire labour. The scariest part is the price is so uncertain, with a cost blowout possible when you least expect it. When building a new home, the price is much more stable and easier to keep in check.
9. Attract better tenants
Thinking of making some rental income? Potential tenants love a new home, and can you blame them? Anyone who’s looked for a rental property will tell you there are some pretty dire options out there, so if your property is in top condition, you’ll have your choice of tenants. Add working fixtures, a modern look and luxury inclusions, and you’ll have a property that will stand out.
A house and land package provides an affordable means of building a new home, which will attract more potential and quality tenants, increasing your return on investment overall.
10. Get a spot in a popular suburb
As mentioned, house and land packages are particularly popular in new estates. Being part of a new community has advantages. Your neighbourhood will be full of new, great-looking homes, beautiful landscapes and new developments and features. Estates often have a particular atmosphere or vibe they’re creating. Some may be all about beachside property and the coastal lifestyle, while others are more suburban with beautiful rural surroundings. Whatever you’re after, house and land packages are a great way to get a spot in a booming residential area.
11. Low maintenance
One of the biggest concerns with buying an older house is the threat of a major renovation around the corner, some unseen issue that won’t rear its ugly head until you’ve signed the contract. Regardless of whether you’re buying the house to make a profit, no one likes an unexpected expense (especially when it could cost thousands of dollars).
While there’s no such thing as a no-maintenance home, a new home will require less upkeep than an older building. This is especially true when you work with new home builders who use quality materials.
Find the right builder for your house and land package
Your choice of builder is the single biggest influence on how well your building experience will be. If you’re an investor or a first time home buyer in Sydney, a house and land package is a worthy investment.
New South Homes is here to help you through your entire building journey and create your ideal home. We have display homes all around Sydney for you to visit and see our quality, unique designs, and excellent inclusions. We’re proud of every home we’ve built, and we’ll keep up that high standard when building your home!
Our sales consultants, designers and builders are standing by, ready to discuss your next project and kickstart your home and land journey. With a wide, diverse range of packages, prices for every budget and a focus on quality – you’ll love the New South Homes difference. Click here to get in touch or call us on 02 9481 7441.
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