House and Land Packages: Your Dream Home Made Simple
So, you’ve made the big decision to build your dream home.
Now, you’re faced with another difficult choice:
- Should you buy a subdivision of land and a custom home design separately?
OR
- Go for the all-in-one convenience of a house and land package.
If you decide to buy a house and land separately. Get ready for some serious planning.
First, make sure your home design fits well on your chosen piece of land. Use natural features like sunlight and wind direction to your advantage.
In Western Australia, choose a house that faces north or east. These directions allow for better airflow, preventing direct sunlight and heat from making your house too hot. It also helps your home ventilate more easily.
On the other hand, there’s the option of a house and land package. This removes all the guesswork since the builder has already sorted out the perfect home design for your specific piece of land.
If that sounds like a much simpler way to build your dream home.
Then let’s explore how house and land packages actually work.
House and Land Packages Explained: A Complete Home Solution
Let’s dive right in and answer the burning question:
What is a House and Land Package?
House and land packages are a convenient deal that includes both
- A new home and
- The land it sits on.
Unlike buying an existing property or going through the complexities of a custom construction on your land. This combined purchase simplifies the home-buying process.
Picture this. You want a brand-new home that you can help design and build from the ground up. That’s where house and land packages come in.
Nowadays, most new homes are built by property developers who grab land when it becomes available from the government. These home builders set up the basics like roads, utilities, water, and sewage.
Then, home builders either:
- Build Homes from Scratch: They construct homes and sell them as a complete package.
- Offer Custom Home Designs: They provide various home designs, allowing you to pick the land and features you want.
This approach makes it easy and affordable for buyers to find the ideal property that meets their needs. Buying this way allows you to customize your home to fit your needs perfectly.
Essentially, it involves securing both a block of land and the construction of a home through two contracts, but with a single simplified process.
Plus, these packages often come with eco-friendly materials and features. Because being green is a big deal in construction these days.
For buyers in Australia, this means knowing the combined price of the home and land right from the start.
Key Features of House and Land Packages
- All-Inclusive Solutions: These packages often come with everything you need, from essential utilities like soakwells to the finer details in the kitchen, all included in the overall price.
- Easy Building Process: Your builder becomes your central point of contact, simplifying the task of finding the perfect home design for your block of land or vice versa.
Why Choose a House and Land Package? Benefits Explained
1. Getting More for Your Money: Cost-Saving Benefits
Let’s talk about getting the most out of your investment.
House and land packages offer great value for your money. One big benefit is the savings on stamp duty. You’ll only need to pay stamp duty on the land, not the house. Which means you’ll save a lot of money.
Plus, if you’re buying your first home. You qualify for the First Home Owner Grant. Which gives you even more financial help.
2. Simplified Process: Saving Time
Forget about dealing with multiple parties, from architects to contractors.
With a house and land package, everything is much simpler. And you’ll save yourself a lot of time.
No more trying to coordinate schedules or manage different parts of the project. It’s all taken care of for you. Leaving you with more time to focus on the things that really matter.
3. Made Just for You: Customization Options
While house and land packages often come with pre-designed options. There’s plenty of flexibility for making it your own.
Whether you want to
- Change the floor plan,
- Pick your own finishes, or
- Add features that suit your lifestyle.
You can do it all without starting from scratch. It’s like having the convenience of a pre-designed package with the freedom to make it uniquely yours.
Easy Homeownership for First-Time Buyers
Your first home may not be your forever home.
But you’ve got to start somewhere, right?
That’s where house and land packages come in handy. Especially for first home buyers like you. You’ll get a brand-new home that fits perfectly on your chosen block.
No unwelcome surprises along the way.
Reason #1: Avoid Sudden Expenses
Custom-built homes can be tricky because of the “unknown cost factor.”
Unexpected expenses can pop up anytime. Throwing your budget off track.
But with house and land packages. Once you’ve picked your house and found the perfect land. The price stays pretty stable. Siteworks costs are still included in your contract. So, you know what to expect.
Reason #2: Solve Planning and Zoning Issues
When you buy land separately. You have to make sure your house design follows all the rules set by the land developer and local government.
For first-time builders, this can feel like a nightmare of paperwork.
But with a house and land package. These issues are usually already taken care of. Giving you peace of mind.
How Does House and Land Packages Financing Work?
Let’s break down how financing for a house and land package works.
When you buy an existing home. You just need a regular mortgage loan.
But with house and land packages, it’s a bit different. Financing a house and land package happens in two simple steps: first, you buy the land, then you build the house.
You’ll need 2 loans bundled together as part of the fixed price.
- One for the land and
- Another for building the house.
Step 1: Buying the Land
When you buy the land, it’s just like any other real estate deal. You get a regular mortgage to make the purchase.
Step 2: Building the House
For the second step, you need a construction loan.
This loan works a bit differently. Instead of getting all the money at once, you “draw down” what you need as each stage of the building is completed.
This helps you save on interest because you only pay for what you’re using at each stage.
1. Managing Repayments
Repayments on your mortgage land loan kick in as soon as you become the landowner after settlement. These payments are solely for the land itself.
As for the home, you’ll only need to pay stamp duty on the land part of the fixed price.
2. Handling Construction Costs
Your construction loan is paid in stages as the house is being built. Each payment covers the work completed so far and includes interest on the amount you’ve paid.
3. Exploring Financial Assistance
First homeowners’ grants can help with purchasing a house and land package. Making it an attractive option for many first-time buyers.
The First Home Loan Deposit Scheme is also worth considering as it can assist with your loan deposit.
Important Stuff to Know Beforehand
A: Ask What’s Included in House & Land Package
Before finalizing your decision, it’s smart to ask the developer about what’s included in the build. Some builders may cover items like fencing, driveways, landscaping, carpets, and, while others may not.
Before you commit, ask the developer exactly what’s included in the package.
Some builders cover extras in the listed price like
- Fencing,
- Driveways,
- Landscaping,
- Garaging,
- Clotheslines and more.
While others don’t. Knowing these details helps you budget effectively.
B: Budget Wisely
It’s wise to budget with caution.
In case the property’s valuation falls short. You might need extra funds to cover construction or land purchase costs.
Having a buffer in your budget can help you handle unexpected expenses with ease.
C: Dealing with Lenders
Lenders might require you to pay initial invoices upfront and release funds from the construction loan only when you’ve used all your deposit.
This ensures there are enough funds to complete the build without any hiccups.
D: Finding Grants for Your Dream Home
Are there any grants available for new house and land packages?
Yes, indeed!
Many states offer grants to assist with buying or building a new home.
Take, for instance, the ‘Home Builder Grant’ provided by the federal government. Additionally, there are tax breaks and stamp duty concessions, particularly aimed at first-time homebuyers.
To get all the details – head over to your state government’s website to gather all the information before you finalize your budget.
Once you’ve settled on where and how your dream home will be built. It’s important to keep a close eye on the construction process.
This way, you’ll stay informed about any changes as they occur. And be well-prepared for the next steps.
House and Land Packages: Is it a Good First Investment?
Let’s answer the big question: Are house and land packages a good first investment?
House packages are a smart and affordable option that lets you have a say in your home’s design. With expert builder advice, you can build a home that fits your needs perfectly, all while potentially saving on stamp duty.
Land and house packages also offer the chance for strong rental income. Your new home will attract quality tenants who are willing to pay more for a fresh property.
At PDCD Homes, we carefully consider every detail of the home design. From analysing the land to picking the best design for its size, orientation (like north-facing), and liveability, we ensure your dream home becomes a reality.
Build Your Dream Home with PDCD Home Builders Perth
Ready to find the house and land package that perfectly suits your lifestyle?
Contact PDCD Homes today and chat with our Homes Specialists!
As a leading Perth land developers, we’re here to guide you through the process.
With a wide range of house and land packages tailored to fit every family’s needs and lifestyle. Our home specialist team take into account key factors like land analysis, size, aspect, and liveability during construction.
Explore our 100+ house and land packages & get access to prime homesites across Perth.
So, why wait?
Contact PDCD home builders Perth today. Your dream home is within reach!
