Tips for Buying a House and Land Package
Homes packaged with the land they're to be built on are called House and Land
Below are a few tips to consider when purchasing a House and Land package:
Types of Packages
1. You purchase the land before the house is built
When buying the land first you will have to pay a deposit, of generally 10% of
the purchase price, with the balance on settlement. This way you will only pay
stamp duty on the land, rather than on the construction of the house.
In this structure, you will need two home loans - one for the land and one for
the construction. Progress payments on the mortgage will need to be made at
different stages of construction.
2. You buy the house already completed on the developers' land.
If you decide on this option, all you need to do is give a 5% deposit, with the
rest once the home is completed. There are no progressive payments with this
option, which you can use to your advantage for either renting whilst the home
is being built, or saving a larger deposit for the home loan.
Research your location and developer
What experience have they got and how long have they been in business?
How many packaged homes have they sold?
Get referrals, and ask the owners if they were satisfied with the workmanship.
Check on appropriate builder's warranty and insurance cover.
Check if they offer a fixed price building contract, so you aren't left with
Selecting a Display Home
Walk through various display homes to compare designs and costs, along with
workmanship and quality of materials.
Pay attention to the detail and finish of the home, such as painting, carpentry
and tiling to check whether they are of a high quality.
Would you like to change a particular aspect of the house? Find out the extra
costs involved and compare these with the price of the original design.
Ensure that all features, services and materials are listed in the contract,
such as letterbox, driveway, clothes line, flooring etc.
Where to go from here: