This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
Are you looking to buy a new home on a budget? The humble house package is increasingly popular across Australia due to its ability to suit many buyers and budgets. You might need house and land where you build new, or you may wish to buy an already finished house (and land) directly from a developer in a new estate. You might even have your plot ready to go and want an uncomplicated build that an off-the-plan home design offers. Today’s post is about building a new home on land, and what you should know before you buy.
The fixed price house and land package is popular with people on a budget and if you’re keen on a fast build time. House and land companies have pre-existing specifications and trade deals already confirmed and fixed-price contracts. So, once you sign contracts and pay the first instalments, construction can begin quickly. This reduces the time until you’re in your new home, saving you money on rent if you were to wait for a longer build to finish. House and land packages in Victoria are popular among investors also for this cost-saving reason. Tenancy assistance also provides peace-of-mind for investors as some companies also offer the ability to have a renter lined up once the new home is completed.
Another appealing aspect of house and land packages is the curated nature of the communities that are developed in new estates. While you can never guarantee who your neighbours will be, most of today’s estates are tailored to suit certain buyers. There are quasi-retirement villages, family friendly estates, eco-villages and even golf or resort-type estates. The pictures in the respective marketing brochures will give a big hint of the developer’s intended buyer, even if they don’t explicitly label an estate as suiting a certain lifestyle. To get a sense of build quality, a little research will pay off. If possible, view other established estates by the same developer and ask the sales team how your new build will compare. Online reviews can also be helpful, but a forum where you can ask questions to existing owners is ideal.
Once you’ve decided to purchase a house and land package, you’ll need finance in the form of a regular mortgage and if you’re building new, you’ll also need to get a construction loan. ‘Drawing down’ on construction loan finance will occur as your build progresses through various stages, rather than borrowing (and paying interest) on one larger sum from the start. Finance wise, if this is your first home, you’re likely to be eligible for a first home buyers grant and stamp duty exemption or reduction. These vary across states, but in Victoria, a first home buyer’s grant can be up to $10 000, or even $20 000 in regional areas. In terms of stamp duty, you are exempt from paying it on new homes up to the value of $600K. Check the website of the State Revenue Office of Victoria for details and conditions. Happy building!
Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the comment form below for feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: House and Land: What You Should Know Before You Buy
https://fangwallet.com/2019/01/15/house-and-land-what-you-should-know-before-you-buy/The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.
