What is a House and Land Package?
If you’re looking to take this route, here are some things that are worth knowing about house and land packages.
What is a house and land package?
House and land packages are offered by property developers who buy large tracts of land, subdivide them into smaller plots and add infrastructure like roads, water utilities, and sewerage lines. They may then sell the land in two different ways:
- Vacant land for you to build a house on
- A completed house and land package, also known as a “turnkey” property
What is a turnkey property?
Generally, a turnkey property means that developers buy the land first then build a fully-renovated house. They will package it as house and land deal. Turnkey properties already have flooring, fences, gates, landscaping, a letterbox, driveway, lighting, and more. They are ready to move in, so you don’t have to worry about building a house, you will also know what the house will look like.
What are the benefits of a house and land package?
The benefit of buying a house and land package deal is that you can customise your house to suit your preferences and needs. The cost of buying the package is usually fixed. The land is also ready to build on if you purchase vacant land, meaning the soil has been tested by the property developers so you don’t have to worry about whether its okay to build on.
If you’re a first time homebuyer, you can benefit from grants provided by your state government and stamp duty concessions. You can visit your state government’s website to find out if you qualify and how much you can recieve for buying land and building a house.
How to finance a house and land package
Financing a house and land package can be quite different from a regular mortgage because it usually involves buying the land with a home loan and then building a house with a construction loan. The loans can either be arranged separately or together. If the loan is bundled together, you may need to start building your home within two years. For the deposit, you will need to have at least 5-10% of the purchase price to get a house and land package loan.