October 05, 2022
There’s nothing like a sparkling new home! If a brand new home is on your wishlist, a house and land package can be a hassle-free and affordable option. We explain the pros and cons to help you enjoy a good buy.
House and land packages can be very affordable
House and land packages come in two varieties. A ‘turnkey’ package typically offers a newly built home on a particular lot – all the buyer has to do is turn the door key and their home is ready to go. Alternatively, a home and land package provides the flexibility to buy vacant land first, then build a home from a set range of builders and designs.
House and land packages come in two varieties. A ‘turnkey’ package typically offers a newly built home on a particular lot – all the buyer has to do is turn the door key and their home is ready to go. Alternatively, a home and land package provides the flexibility to buy vacant land first, then build a home from a set range of builders and designs.
Both options could be a very affordable way to enjoy the benefits of a new home. You may also be eligible for other savings too. Buying land first and building later provides savings on stamp duty, as duty is only levied on the value of the land. In addition, financial support such as the First Home Owner Grant, is often only available for newly built homes.
House and Land Packages as a First Home Buyer
If you’re a first home buyer and are looking to purchase land to build your home on, you may be able to purchase a modest home with a deposit as little as a 5% under the Government’s First Home Loan Deposit Scheme (New Homes) Guarantee.
If you purchase a house and land package or land and a separate contract to build a home, you may be eligible to apply for one of the 10,000 places in this scheme. However, it is important to understand that you must start building within 6 months of entering the contract, finish building within 24 months and move into the property within 6 months of the occupancy certificate being issued.
Pre-approval lets you know what’s affordable
If a house and land package sounds right for you, it’s important to speak with a mortgage broker at an early stage.
As your local Mortgage Choice Broker, I can explain your borrowing power - which gives you the starting point you need to know how much you can afford to spend on your new home.
Pre-approval is also an important part of your home loan preparation. A pre-approval can give you a clear idea of whether there’s room in your budget to customise the design and stamp your personality on your new home.
Contact me directly to talk about house and land packages on 0499 994 831 or email thorsten.materne@mortgagechoice.com.au
