Choosing your Home
House and Land Packages – What You Need to Know.
How Do House and Land Packages Work?
Firstly, what is a house and land package? House and land packages combine home and land loans into one package to provide an easy and affordable way to find the best property to suit your needs – allowing a buyer to secure both a block of land and the construction of their home in two contracts but one streamlined process. These are popular in Australia since buyers can know the combined price of their home and land from the outset.
House and land packages often come in fixed price packages that lock in the price for the construction of the home as well as the land, meaning there are no surprise additional costs. House and land packages allow buyers to get the best of both worlds by choosing their perfect location and still being able to design their dream home.
In essence, home and land packages allow customers peace of mind, along with a quicker and easier cost-effective alternative to organising location and construction separately. The buyer can be assured that the best possible home design has been chosen for that house and land shape when purchasing together. This appeals to many first home buyers, downsizers, and investors who want to be guided through their home buying journey.
How Does Financing A House & Land Package Work?
The biggest difference between purchasing a house and land package compared to other options is how the financing works. For example, when purchasing an existing home, you only need to take out a regular mortgage loan, while with the house and home packages, you are required to take out two loans that are generally bundled together as part of the fixed price. These two loans include a regular mortgage on the land and a construction loan for building the house.
Repayments on your mortgage land loan will need to start being paid as soon as the ownership of the land is transferred after settlement. These repayments will be only regarding the land itself, and since the house is not built yet, only stamp duty on the land component of the fixed price will need to be paid.
Your construction loan is paid in increments at the end of each stage of construction and consists of interest on the amount of money you have paid thus far.
First homeowners’ grants can also contribute towards purchasing a house and land package and is a popular option for many first home buyers. The same can also be said for the First Home Loan Deposit Scheme, which can assist with your loan deposit.
Are House & Land Packages A Good First Investment?
House packages are often popular choices for first-time investors since they are an incredibly cost-effective option that still allows for plenty of assistance. Buyers are able to build a home that meets all of their specific needs with plenty of help from builders advising on the right land and right home design for the block of land chosen. There is also the financial incentive of potentially reduced stamp duty.
Land and house packages are also a good way to ensure strong rental yields – this is mainly because brand new homes attract high-quality tenants that expect to pay more for a premium property with no wear and tear. This allows you to choose from a larger selection of tenants and charge premium rent for a better return on investment.
At G.J. Gardner, the team can take all key considerations of home design into account during construction. This means analysing the block of land and choosing the best design for the specific size, aspect (e.g., if it is north facing), and liveability.
How To Find A House & Land Package?
G.J. Gardner has a wide range of house and land package options, with a package to suit every family’s unique needs and lifestyle. To build the perfect dream home in the perfect location, it is best to work alongside a friendly and experienced G.J. Gardner builder.