What is a House and Land Package?
Monday, 8 January 2018 12:00 AM
A house and land package is a term used by builders and developers to describe the product bundling of a new home and a block of land. House and land packages are attractive to potential buyers because they offer convenience and all-inclusive pricing.
Are there different types of house and land packages?
Yes. In Australia, two types of house and land packages are prevalent.
Who buys a house and land package?
A large percentage of people who buy house and land packages are either first home buyers or investors. Both sets of buyers are driven primarily by financial considerations – like lower stamp duty, affordability and greater tax benefits (for the investor). We outline the benefits of a house and land package in a later question.
What does a house and land package include?
How long is a piece of string? Obviously, a house and land package includes a house and a block of land. But apart from this, no two house and land packages are the same. That’s why you need to examine any house and land package with a fine tooth comb – to work out the inclusions and exclusions. A house and land package from G.J. Gardner Homes always features a large number of inclusions.
What are the benefits of a house and land package?
There are a number of benefits associated with buying a house and land package.
Lower stamp duty
Certainty around site preparation costs
How many contracts are involved?
A house and land package involves two separate contracts: one for the land, and one for the house construction.
Are there other costs involved?
Yes. Besides the cost of the house and land package, you’ll need to budget for stamp duty, conveyancing (searches, transfer of title) and legal fees. If you’re a first home buyer, you may be eligible for a stamp duty concession – just check your state government’s website.
Are finance loans structured differently for house and land packages?
In most cases, yes. A “house and land” loan is really two separate loans bundled together: a regular mortgage for the land component; and a construction loan (with drawdown facility) for the house component. However, once the house is completed, the two loans revert to a single mortgage.
Hopefully, we’ve helped you to better understand the ins and outs of buying a house and land package. As an award-winning national home builder, G.J. Gardner Homes has a wide range of quality house and land packages available for purchase throughout Australia. For further details, please contact us.