There are two types of house and land packages. The first choice is to buy the land and build the house there afterwards. The second choice is to purchase a house and the land package also referred to as a spec home, which includes a house that has already been constructed on the developer’s property and is ready to be occupied. House and land packages in Australia consist of the property and a newly built house on top, which is sold together under two separate contracts. A house and land package is something to think about whether you’re a first-time home buyer, an experienced investor with a portfolio of projects, or a senior looking to downsize. Various benefits of house and land packages can be as follows:
- Smooth Home Loan Approvals: You often need to submit several documents and meet certain requirements to acquire a home loan if you don’t purchase a house and land package. Even if your application is approved, the process takes a while. As a result, while you wait for your lender to process your home loan application, you will have to postpone your plans to purchase a new home.
- Transparent Pricing: Most house and land packages have a list of dwelling characteristics in the contracts. As a result, you have a clear understanding of what you are paying for and won’t be hit with any unpleasant surprises after making your payment. Additionally, you will be able to immediately determine whether your new home is within your budget rather than having to estimate costs along the route or being surprised when the final sums are revealed. This is so since the final cost already includes all fees for labour, materials, and consultations.
- Less Maintenance: Whether you are an investor or an owner-occupier, it is comforting to know that the home you recently bought won’t need a lot of upkeep shortly. Older homes need a lot of upkeep, such as regular painting and, in rare cases, repairs if the house’s foundation is failing. While new house and land packages are appealing since they often come with a warranty and need little maintenance over time.
- Increasing Property Value: Two of the best things about owning an existing property are the joy of finding a home you can improve and the possibility of property value growth. House and land bundles will present you with extra opportunities if your business involves purchasing houses, renovating them, and then reselling them for more money.
- Good Investment: For several reasons, house and land packages are great if you’re considering investing but are unsure of what to do with your money. Since many are built in recently developed areas, land value is frequently anticipated to increase over time. Additionally, newer buildings frequently draw more tenants, allowing you to raise your rent as the value of the property increases and sustain yourself.
Attractive to Renters: As previously said, a brand-new home with a contemporary floor design and amenities is quite appealing to potential renters. When given the choice between renting an older home or a more contemporary one for the same monthly rate, tenants will typically choose the latter.