Benefits of House and Land Packages
When you’re in the market to purchase a house, the choice is overwhelming. However, there’s another aspect to house hunting that can be overwhelming: cost. Homeowners will often find that homes they prefer are usually out of their budget. Enter house and land packages; they offer homeowners similar advantages to traditional homes at a reasonable cost. We explore these advantages in this post on the benefits of house and land packages.
1. Cost-Saving on Stamp Duty
One of the best benefits of purchasing a house and land package is that you only pay stamp duty on the land. According to NSW stamp duty costs, this equates to a saving of over $10,000 to build a home worth $350,000.
2. Eradicate The Risk of Unexpected Renovations and Repairs
The pain of purchasing a home is that even after you complete inspection, you may encounter unexpected renovations and repairs, an expense that makes homeownership unfeasible. However, by choosing to buy a house and land package, all finishes are brand new and still have their warranties and workmanship guarantees. You won’t need to be concerned with a leaky roof, electrical issues, or unseen deteriorating infrastructure, nor will you need to budget to modernize the home.
3. Tailor To Your Tastes
Land and house packages are the furthest things from a cookie-cutter design. Instead, they enable you to get all the benefits of a home build without the hefty investment or upfront cost. You get to tailor most of the significant components of the home. Meaning you don’t only have to reflect your tastes through furniture and decor. Instead, by purchasing a house and land package, you get to customize many of the details of your home: from the kitchen cabinets to the entryway door, the layout of the home, and even landscaping.
4. Spend Less Than Buying New
House and land packages that form part of development often cost less. You’re essentially working with a developer to purchase land and then build your home. The entire process gives you control, so you can reside in a far more affordable version of your dream home than if you were to purchase your dream home in resale.
5. Buy Into An Emerging Market
Many of the sales for house and land packages happen in emerging suburbs. Therefore, if you’re able to purchase at starting costs offered by house and land packages, you can leverage the suburbs growth and potential before prices begin to increase.
6. Delay Your Payments
Unlike purchasing a home through an auction or private treaty, you aren’t required to pay the settlement costs upfront. Instead, you can defer settlement payments, which may take up to a year after you pay your 10% deposit on the property to mature. For first time buyers, this deferred settlement date also means more time to save up, so you have more equity in the home from the date of occupation.
Although the benefits outlined above are tremendous, you may still be apprehensive about buying a house and land package if you don’t understand how they apply to you. To help you navigate this uncertainty, consider what your home means to you. Is it an investment? A way to exit the rental market? A tool to offer your family stability? Owning a home shouldn’t be a luxury. Therefore, for first-time buyers, who make up nearly 30% of buyers in NSW, the benefits of buying a house and land package is a way to enter the market in investment-grade projects. The repayment and contracts are more flexible than with resale homes and since you’re the first owner of the property, your home is more than likely to appreciate.