If you’re looking to build a new house, you may be tempted to go find a piece of real estate, hire an architect, secure a builder, and start the process. But did you know there’s a much simpler process? A house and land package could be right for you.
What Is a House and Land Package?
As the name suggests, a house and land package includes both a newly constructed house and the land that it sits on. While most buyers typically look at these as coming together, the package is actually presented as two separate contracts – one for the land unit and one for the building.
Typically, buyers have to wait for the land portion of the house and land package to be ready to build on. As long as the buyer starts the process early enough, this typically isn’t an issue. If nothing else, it provides more time to save money for the down payment.
Exploring the Benefits of a House and Land Package
There are plenty of options for people who want to buy a house – so what’s the draw to house and land packages? Many people find the following benefits alluring:
Ability to Choose a Good Location
One of the biggest perks of a house and land package is that it allows you to pick a very specific location. As opposed to trying to find the right property that will fit the type of house you want to build, you get to select a lot that’s already been strategically chosen with a tailor-made property in mind.
Take Planbuild, one of Australia’s leading homebuilders, as an example. When you look through their inventory of house and land packages, you’ll see a range of homes in desirable parts of Brisbane and South East Queensland. It doesn’t get much better than that.
Peace of Mind (With Cost and Financing)
There’s something to be said for the peace of mind that comes with a house and land package – particularly regarding cost and financing.
As previously mentioned, there’s the land unit and the building contract. In most cases, you’ll need something like a 10 percent deposit on the land and 5 percent deposit on the building contract. Purchased separately, you would generally be required to put a much larger percentage down. Having this amount of predictability makes it easy to know exactly what you can afford.
There isn’t much of a guessing game with home and land packages. From the home side of things, most of the choices are already made for you. The builder has experience on his side, and the nature of repeatability makes it far less likely that there will be any major issues, errors, or oversights. The home will be built quickly and according to the specs.
Possible Tax Benefits
In addition to the construction cost savings that come with purchasing a house and land package, you may also stand to enjoy some tax benefits.
When you buy a house and land packaged, the cost of building and furnishing is deducted from the total cost of the house. This provides far more substantial savings and can make the entire process more affordable for everyone involved.
Overall Easier Process
One of the most appealing aspects of buying a house and land package is the convenience that comes with it. Almost everything about the process is easy, making it ideal for those who don’t have a ton of time or energy to put into it. More specifically, it’s easy to find exactly what you want.
As Commonwealth Bank of Australia explains, “House and land packages are often tailored to appeal to a specific group of buyers. You might find the one you want in a golfing estate, retirement village or even an eco-village. Then there are the new sub-divisions, with opportunities for investors or first home buyers.”
Adding It All Up
A house and land package isn’t right for everyone, but it certainly provides some enticing benefits and perks. From location and peace of mind to consistency, tax perks, and simplicity, there’s something for everyone.
Perhaps you should consider it as a practical option moving forward.