Not everyone opts to live in a townhouse or an apartment with a skyline view; some still dream of a lovely, cosy family home with a backyard. For most Australians, buying house and land packages with the help of reputable companies like Residential Building WA is the best choice for their housing goals.
These residential buildings are made possible by buying the house and land package. However, there is much information you need to be aware of before deciding to purchase this package.
House And Land Packages: Things You Ought To Know
House and land packages could be the perfect option for people buying a property as an investment or simply a place to live. This allows interested buyers peace of mind and is a more effortless and cost-effective alternative to separately organising the house construction and location.
There are two options for building a house. You may do it the conventional way, by purchasing the land first, then building the house. The other option is to buy a house and land package, which usually has everything already—from the land to the house, and the window blinds.
It is important to remember that purchasing a house and land package differs from buying a townhouse or an off-the-plan apartment in Australia. For starters, the latter only needs one contract where you pay a 10% deposit, and after the apartment is completed, you pay the remaining balance.
For a house and land package, homeowners must sign two contracts. One contract is for purchasing the land from the developer with a 10% deposit. The other is for buying the house from the builder. This typically requires a 5% deposit.
Most of the time, the land developer and the house builder are entirely different entities. The developer provides the design guidelines, which the builder follows.
Housing Estate Options
When choosing a house and lot package, you are naturally looking at purchasing a land estate that may vary from small and medium subdivisions to a master-planned community.
1. Small Subdivision
It is an established area with over 10 to 20 blocks of land. The amenities are typically in place already, just like in a well-established community.
2. Medium Subdivision
A medium-sized subdivision option has about 100 pieces of land, which may have been a farm in the past. It could be a better option for a family with a bigger population. However, the amenities here are sometimes not included in the package. Potential buyers must first research the distance of the new home from schools, transportation, and such.
3. Master-Planned Community
It is a neighbourhood of more than a thousand blocks of land. The amenities usually include new parks, shopping centres, community centres, and schools.
Buying a package from the master-planned community might be a hassle, especially since future homeowners may need to wait for all the amenities to be completed. Once everything is complete and polished, prices will likely increase.
How Long Will It Take To Buy And Build A House And Land?
Building the perfect dream home in the best location can be made possible alongside an experienced home builder. Additionally, depending on the estate, builders could prepare your land for you to buy and build.
Once the council building approves the paperwork, usually within 1 to 2 months, you can go directly to construction with your desired builder. Can the land developer register the land titles after the infrastructure is in place? Once the title is in your name, you can settle on the land and pay the remaining land costs to proceed to council approval and construction.
A single-level house usually takes about 4 to 7 months to construct, with five vital stages including the slab, frame, enclosing (windows and doors), fixing (internal fittings and fixtures), and practical completion.
Always remember that once you have settled your land, you will also start paying for its mortgage. As soon as you begin paying each stage of the building expenses, you also pay interest at council rates.
Are House & Land Packages A Good Investment?
People consider various factors when buying properties like houses and land packages. Below are the top reasons why they make excellent investments.
Tenants prefer new homes over existing ones
A house and land package offers the opportunity for strong rental gains as brand-new houses attract high-quality tenants who expect to pay more for a premium property without wear and tear.
Low maintenance costs
It is far more appealing for investors to enjoy new homes as they will not spend much on maintenance costs. No renovations will take place for a few years, and warranties are also good for several years after construction.
Depreciation claims and tax benefits
One of the benefits of purchasing a house and land package as an investment property is its depreciation claims and tax benefits. In a new house, owners can claim tax deductions for depreciation assets such as the construction cost of the infrastructure itself. This also includes its fittings and fixtures.
Freedom to choose the block and design
When purchasing a new house and land package, you have the option to have the most suitable block of your choice. In addition, you are free to customize the house setup to make it more appealing and attractive to your future tenants.
Stamp duty savings
Investing in a brand-new house and land package in Australia means you only pay stamp duty on the value of the land component and not the land and house components. This could save you thousands of dollars!