Searching for a dream home in the perfect location can be an exciting but stressful and time consuming activity for many home buyers. A house and land package offers many benefits including customization of the home plan, layout and new materials that will save you on maintenance. Partnering with trusted home builders and bundling the home and land into one package, provides an affordable way for you to find the best home in the best location for your needs.
What is a house and land package?
House and land packages enable you to choose a block of land and build the home you want to live in. You can often tailor certain elements to suit your specific needs. This might mean having more control over the floor plan and rooms, and ensuring that your home is energy-efficient and demands less maintenance.
Finding a house and land package
If you are looking to purchase land in an established estate, this provides you with an opportunity to speak to homeowners in the area and get a feel for the neighborhood. Available house and land packages can also be found advertised in multi-listing websites or directly through your chosen developer.
How does financing work?
Financing a house and land package is a two step process.
Step 1 (Buying the land): The land is purchased with a simple mortgage loan
Step 2 (Construction): The house is built with a construction loan
One of the main benefits from the package approach is that the construction loan allows you to ‘draw down’ on an agreed amount to pay during each stage of the building process. This means that you only pay interest on the specific money you are using during each stage that the home is built.
What to expect
Known as ‘buying off the plan,’ a house and land package involves selecting a block of land in a new or established development and choosing a home design for your new home. The process starts with choosing the neighborhood where you want to build. This is the time to consider how far you need to travel to work and the availability of local schools and other facilities in the area. Next you will need to consider a home design and which builder you would like to complete construction.
Choosing a home builder
When choosing a home builder it is important to consider the following;
- Where they are currently building
- Inclusions in the contract
- Fixed price fees
- Any add-ons relevant to you
- Terms and conditions in the contract
- Expected construction time
Steps before construction
Most home builders have the same simple steps for new home buyers to complete before construction commences.
Stage 1: Deposit
Before building commences, an initial deposit is paid to secure current pricing.
After you have informed your builder of the house type and additional items you would like to include, the builder will provide you with a tender for the construction of your new home.
Stage 2: Acceptance stage
The home builder will then explain all the items and costs associated with building. A house plan will then be made for approval by the homebuyer.
Stage 3: Contract signing
At this stage it is important to provide the builder with evidence of funds or pre-approval from a lender of your choice. After consultation with flooring providers, kitchen suppliers and finalizing colour and design choices, you will be ready to begin construction on your new home.
Building a new home is a big venture.
The best way to ensure that you receive the best deal with a reputable home builder, is to ensure that you do your research and ask questions. It is important to ask the building company about what is included in the quoted price, to ensure that there will be no surprising and additional fees included for standard features.
The house and land package is becoming increasingly popular among home buyers and property investors. Seeking advice from a trusted financial advisor and home builder is the first step towards achieving an affordable house and lack package.
Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement. We ask that every contributor and expert answer the Identity 5 questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.
1. What have you accepted within your life, physically and/or mentally? Additionally, what are you still working on accepting? Now, we’re talking about resignation, rather stepping into, embraced, and owned.
That not all will enjoy my writing.
2. What have you learned to appreciate about yourself and/or within your life, physically and mentally? On the other hand OR in contrast, are there elements of who you are that you’re still working on appreciating?
I appreciate my ability to be creative.
3. What is one of your most rewarding achievements in life? Tell us not only what makes YOU most proud but also share the goals and dreams that you still have.
Proud to have the writing skill.
4. Of course, we all have imperfections, or so we think. In truth, we are all perfectly imperfect. What are your not-so-perfect ways? Likewise, what imperfections and quirks create who you are—your Identity?
Ha, Many! I embrace them all.
5. “I Love My…” is an outlet for you to appreciate and express all the positive traits that make you…well…YOU! In fact, sharing what you love about yourself will make you smile, feel empowered, and uplift your spirit and soul. (We assure you!) Therefore, Identity challenges you to complete the phrase “I Love My…?”
I love my family.