Sep 09, 2021
How do house & land packages work?
Are you thinking of buying a house or building a home but don’t know where to start? Deciding to buy a house is a big investment and can be tricky and expensive depending on your financial situation. House and land packages are a good option if you’re a first home buyer or if you want to invest in building your dream home at an affordable cost – all included with the home essentials.
House and land packages allow the buyer to have a smoother and easier process in building their new home as they’re guided through the journey.
At Aston Homes, we are committed to helping you at every step of the journey in building and acquiring your new home.
What is a house and land package?
House and land packages offer buyers a fixed price to purchase a house and land deal. In other words, a house and land package often combines the services of a builder or contractor with a vacant block of land into a single price for a home buyer.
Property developers secure the land component and contractors build on and around the land as both have usually partnered up to provide the buyer with a house and land component where they can merge the prices of building a house with the price of the land. Often this process is agreed upon with two contracts – one for the house and one for the land. You’ll need a regular mortgage loan for the land and a construction loan to pay for the cost of building.
What is the process of buying a house and land package?
House and land packages normally consist of fixed price packages, however, there might be some additional costs if you’d like to add extras or modify any designs after the contract has been signed. A builder and developer will share the combined price of the house and land purchase.
House and land packages are often an excellent choice for first home buyers as there are many government incentives to help with the costs of buying a home and land package.
Is it cheaper to buy a house and land package or an existing home?
Investing in a house and land package versus an existing home has its benefits. For one, you only have to pay stamp duty on the land when building your house compared to the whole amount when buying an existing one.
The property value of an existing house can be more expensive than building a house. A regular mortgage or home loan can take years to pay off if the costs of purchasing a house are already high but you can save money by building your home with a house and land package that has a fixed price with no surprise additional costs.
Home and land loans are usually combined but can also be arranged separately with your mortgage broker. There are many government incentives to help buyers with the costs of building a house, such as the home owners grant and tax and stamp duty concessions. It’s best to check your state government’s website for further details on grants and incentives before purchasing your home or talk to one of our friendly team members.
Build your dream home with us today
Looking to build a house but don’t know where to start? The team at Aston Homes can help. Whether it’s your first build or not, we’ll be with you at every step of the journey from the time the contract is signed to the time your keys are in your hand. We’ll keep you informed so you’ll always stay in the loop.
Our team strives to build each home with the utmost care and professionalism, as if we were building the house for our own family. We mainly build new homes in the north and west of Melbourne and we offer a competitive house and land package price as we understand it’s an important investment.