House and land packages are becoming increasingly popular in Australian real estate investments, with Perth house and land packages on the rise. Many couples and families are choosing not to go the traditional route when it comes to buying a home or adding to an investment portfolio, and instead choosing an option that provides a smoother process, customisable outcome, and potentially lower cost.
So, what do you need to think about when purchasing a house and land package?
We’ve put together a few ideas:
It’s important that before you even start looking at block sizes and types, you think about what suburbs or areas you would like to live or invest in. Think about your lifestyle and what you require and value. Do you need a location with schools and public transport nearby? Are you hoping to live somewhere near a particular business district? Do you value the beach over shopping centres, or perhaps want to be close to a specific university or train line? Take the needs of everyone involved into consideration, and come up with a list of suburbs that might work for you. Make sure you don’t focus in on just one or two, as it pays to be flexible when it comes to real estate! Take new estates and communities into consideration.
House and land packages often come in two forms. In the first, you purchase the land before the house is built: you put down a deposit and pay the balance on settlement, meaning you will only pay stamp duty on the land rather than the house. This will equate to two home loans – one for the land, and one for the house. In the second option, you buy the package with an already completed house on land owned by the developer. This generally only requires a 5% deposit, with the rest paid once the home is settled. Decide which might work best for you according to what your finances look like now and down the line, and depending on how much input you might want to have on your new home. Also remember that if it will be your first home, government grants are often awarded for first home buyers that invest in a house and land package – with grants of up to $10,000.
The next step to consider is choosing the right builder for your situation. Make sure you do your research and understand which companies build in the areas you are looking at, and ask your family and friends for recommendations. When you have narrowed it down, get in contact with your final few contenders and ask what they can offer you. Find out what kind of experience they have – both as a whole and in the areas you are wanting to buy in – ask to see a portfolio, check their insurance cover and credentials. Ask if you can get in contact with past clients, and investigate how they felt about the building company you are hoping to choose. Make sure the company you choose is not only affordable and experienced, but also communicative and willing to collaborate with you to create your ideal home.
Future Home Living offer house and land packages across the Perth region in both new and established communities. We offer affordable packages with ready-made designs or collaborative concepts, and our team are highly experienced and personable. Get in touch with us today to chat about your future home and our house and land packages.