Buying a house and land package is an exciting time that marks a major life milestone and offers security, freedom and long term financial benefits. House and land packages are popular because they provide an affordable, stress-free way to buy a new home. Not only can buyers enjoy significant savings with house and land packages with stamp duty savings and fixed prices, they can choose the design and location that suits their lifestyle. House and land packages in regional areas like Echua are becoming more sought after with buyers seeking a quiet and relaxed lifestyle that is also affordable compared to city prices. Masterplanned communities like Yallarah, offer the opportunity to build a brand new home in a pre-planned, amenity rich environment.
What is a House and Land Package?
A house and land package is when a buyer purchases a block of land and a pre-designed home from a developer and builder working together. Buyers purchase the land and the house in a single transaction which simplifies the process. The ‘package’ is the house and land being bought together. The overall cost covers the land, the home and basic inclusions. However it does involve two separate contracts – one is the purchase of land from the developer and the second is the contract with the builder to construct the home.
House and land packages are typically found in subdivisions like Yallarah, a new contemporary master-planned community of Echuca. Yallarah offers the choice of 3, 4 and 5-bedroom house and land packages with reputable builders. Simonds Homes is offering their 4-bedroom family home, ‘Fairlight 25’, on a generous 656m2 block for just $638,972. For those wanting 5 bedrooms, JG King Homes has their ‘Brunswick 33’ on a generous sized lot of 875m2.
Questions to Ask When Buying a House and Land Package
When buying a house and land package it is important to understand what is involved and what you are getting. It is vital to eliminate any confusion and have an understanding of the costs, inclusions, timelines and quality of the build to make sure it meets our needs. When considering a house and land purchase, here are some questions to ask:
How much does a house and land package cost?
While house and land packages tend to be less expensive than buying an established home it is important to find out how much it is going to cost. The final price will depend on the location, the size of the block and the home you are intending to build. House and land packages in regional areas like Echuca tend to be generally more affordable than metropolitan areas with significant savings mainly due to lower land prices. When considering the overall cost, remember to take into account registration fees and stamp duty as they are often not included in the price.
How to finance the house and land package?
Financing a house and land package is different from financing an existing home as it typically involves two loans that are bundled together. It is not a single mortgage that an established home requires, but rather it is a land loan and a construction loan. The land loan starts repayments when the land is settled while the construction loan is drawn down in stages to pay the build.
What is included in the cost?
It is important to find out what is included in the cost of a house and land package as inclusions can vary dramatically between builders. You don’t want to be hit with unexpected costs like landscaping, fences and driveways. It is a good idea to clarify what is included in the cost to ensure you are getting all the amenities you planned for in your dream home.
How long will it take to build and move in?
The building timeline of a house and land package is important to know to manage finances, arrange for alternative accommodation and understand an approximate move in date. House and land package timeline will vary depending on whether the land is registered or whether it is ready to build on (titled). As a rough guide, once the land is purchased and ready to build on and the house design is chosen, it usually takes between six and 12 months for completion. Ask your builder for a timeline as they will have a more detailed understanding of your specific project and any potential delays.
What kind of warranty is there?
House and land packages typically have warranties that cover structural issues and workmanship and it is important to know what warranties are included with the purchase. As warranties can vary, clarify the exact terms and what is included. Usually warranties cover aspects of the build to cover longevity, quality and financial protection against any defects.
Are there any grants?
Ask about any grants like the First Home Buyers Grant or any other incentives that can help reduce the upfront cost of a house and land package. The First Home Buyers Grant is popular for first home buyers and can significantly reduce the price. Sometimes there may be builder’s bonuses or features like free site costs that can help with the upfront cost.
How to Find a House and Land Package
Looking for a house and land package is an exciting time from choosing the location you want to call home to finding the perfect house design. Follow these steps to find the right house and land package for you.
- Choose a location: When choosing a location, consider factors that are important to you like lifestyle, amenities and employment. Take into account the community vibe and whether you prefer a relaxed lifestyle like living in Echuca compared to a busy metropolitan area. If you long to be surrounded by natural beauty but still have the benefits of a thriving community, explore regional areas.
- Find a developer and block: Once you have chosen the location, research suitable developers. The Wel.Co group is a national development company behind successful community development projects, including Yallarah, a large regional development in Echuca. When choosing a developer and a block, research their reputation and the types of blocks available.
- Visit display homes: By visiting display homes you can see, first hand, the type of house designs available and what is included in their price. Explore different layouts to determine the perfect home for your needs.
- Organise finance: With a clear idea of the location, development and type of house and land package that appeals, begin the process of organising finance by visiting your financial institution. Remember that a house and land package will usually involve two loans bundled together.
- Find and secure your block: When you have chosen your block, secure the land with a deposit. Usually that is 5 to 10% of the total price. You will then sign the land contract.
- Pick your house design: Choose a house design that will suit the block you have chosen. During construction the lender will start releasing the funds in stages. You will then sign the building contract.
- Monitor the building process: When the building begins you can then monitor the progress and watch your dream home come to life.
Benefits of House and Land Package
One of the most appealing aspects of a house and land package is the simplified process. It is more streamlined and usually ends up costing less in the long run. We explore all the benefits of a house and land package.
- Affordability: House and land packages are more affordable than buying established homes or purchasing your house and land separately. They come with fixed pricing, potential government grants and offer savings on stamp duty on the land. When purchasing a house and land package you only pay stamp duty on the land and not on the dwelling as it has not yet been built.
- Less maintenance: With a house and land package you get a new home in good condition with warranties. It will require less maintenance than an already established home.
- One stop shop: Everything is taken care of with a house and land package. There is no need to look for land and then buy it, search for an architect for the right house design and then find a good builder. You deal with a single company for both the land and house, and the cost is all in the one package.
- Chance to live in a regional location: Often house and land packages in regional areas are less expensive, so this may give you the chance to enjoy the serene environment of a regional area.
It is important to understand the intricacies of buying a house and land package to ensure you make an informed decision when buying a home. Our guide explains everything you need to know about buying a house and land package from choosing where to live to understanding finance and contracts. Yallarah has a variety of house and land packages to suit everybody from first home buyers to families and those looking to downsize. Contact Lerreace at the sales office for further information on how to secure your dream property.