If you’re looking to move into a brand-new home but don’t want the price that comes with a custom build, a house and land package are a great alternative. These types of packages are typically divided into two categories, which feature purchasing a block of land before a house is built or buying a home that’s already built on a developer’s block (turnkey). Home loans for house and land packages also work differently from buying an existing home, as you’ll receive separate loans for the land and the construction – It’s also worth noting that a good lender will bundle these loans, so you don’t fall into the dreaded trap of receiving a loan for the land but not for the building process. In today’s article, Medipro takes a look at ‘Are house and land packages worth it?’ and the benefits of house and land packages to help you work out which option is best for you.
Are house and land packages worth it? Pros and Cons
Pro: You can add a personal touch
When it comes to querying ‘are house and land packages worth it?’ one of the most common complaints you’ll hear is lack of personalisation. Many people argue that if you’re going to go to all of the trouble of building a new home, wouldn’t you want it to be to your exact specifications? Though it’s unlikely that you’ll be able to add or takeaway rooms or reconfigure a kitchen, a house and land package does give you some choice when it comes to fixtures and fittings. This includes choosing the colour of the fencing, garage, façade, and carpets or choosing a company that has plenty of house and land packages available that suit your preferences.
Cons: Comprising on location
Undoubtedly, one of the biggest cons to purchasing a house and land package is that most options are available on the outskirts of the city. This is fine if you’re raising a family and looking for a remote suburb location, but not so much if you’re a young professional who needs to travel to the CBD on a daily basis. Additionally, these types of packages are often located in areas with very little infrastructure, as most of the land available today is 50km or more than the CBD.
Pros: It costs less to build than a brand new home
Undoubtedly, one of the biggest benefits of house and land packages is the cost. If you’re looking for a home that’s never been lived in but can’t afford the price tag of a custom build, house and land packages offer the best of both worlds. Not only will you save on stamp duty if the house hasn’t been built yet, but you might also be eligible for government grants. A house and land package gives you the option to shop around for the right home and location without incurring the costs of an architect and builder to design a brand-new home.
Cons: Slower to make a profit
If you’re looking for an investment property or don’t see yourself staying in your property for too long, chances are you won’t see much of a profit selling your house and land package. This is because house and land packages tend to be available in the outer suburban pockets with weak infrastructures, resulting in the price growing at a slow rate. Factor in developers offering house and land packages at competitive prices and selling your home within a few years of purchase will likely net you little to no profit.
We hope you’ve enjoyed reading our article on ‘Are house and land packages worth it?’ Are you a practitioner in medicine and are looking for home loans for medical professionals? At Medipro, we offer financial services at no fee to the customer and can help arrange a suitable loan with flexible lenders at attractive rates. Enquire today by calling 1300 375 656, emailing firstname.lastname@example.org or by getting in touch online and one of our finance specialists will be in touch shortly.